In the words of Changpeng Zhao, “Crypto is not going away. We are still here. Let's rebuild.”
Changpeng Zhao, the CEO of Binance, revealed his plans to set up an Industry Recovery Fund to aid crypto projects that are under the threat of a liquidity crunch.
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2
— CZ Binance (@cz_binance) November 14, 2022
Zhao claimed that these funds will safeguard crypto firms from the fallout of the FTX insolvency crisis. He also asked “industry players” to contact Binance Labs if they wish to co-invest in this venture.
I would like to join the fund @cz_binance . Let’s make sure we don’t centralise the industry too though. Let’s make this an industry effort. https://t.co/SV4lM0HWrL
— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) November 14, 2022
In response, Simon Dixon, the CEO of BnkToTheFuture, voiced his support for the Industry Recovery Fund project. Simon, however, cautioned against centralizing the crypto industry and instead proposed turning the project into an industry-wide effort.
Similarly, TRON’s Founder, Justin Sun, stated that TRONDAO, Poloniex and Houbi will contribute to the Industry Recovery Fund.
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Zhao, who had earlier abandoned the FTX takeover deal after analyzing the exchange’s finances, recently spoke at a gathering of G20 leaders in Bali. He emphasized the need for clear regulations for the crypto ecosystem, adding,
“We're in a new industry, we've seen in the past week, things go crazy in the industry. We do need some regulations, we do need to do this properly, we do need to do this in a stable way.”
