Binance CEO CZ announces the formation of an industrial recovery fund.
The fund will assist potentially strong projects that are experiencing liquidity challenges.
Zhao did not disclose all of the details on which projects would be eligible.
Formation of an industry recovery fund as the FTX crisis devastates the crypto sector.
Binance's recovery fund will assist long-running, successful projects that have been affected by the liquidity crisis. Crypto platforms can get in touch with Binance Labs to determine whether they qualified for the market recovery fund.
Furthermore, Binance's CEO urged other companies to co-invest in the recovery fund and help the market recover. The crypto prices have plummeted, and institutional investors are losing faith after one of the top cryptocurrency exchanges, FTX, filed for Chapter 11 bankruptcy on November 11.
CZ Announces Industry Recovery Fund
Following the FTX crisis, the crypto market has continued to fall. Moreover, the contagion has spread to other companies as they struggle to recover from previous Terra-LUNA and liquidity crises, and Binance is no exception.
As a result of the crypto market slowdown, Binance CEO "CZ" launched an industry recovery fund in a tweet on November 14 and encouraged other investors to participate.
“Binance is forming an industry recovery fund to assist projects that are otherwise strong but are experiencing a liquidity issue in order to avoid the cascading negative effects of FTX. More information will be available soon. In the interim, please contact Binance Labs if you think you are eligible.”
Justin Sun, the founder of Tron, intends to support and participate in Binance CEO's initiative to restore the market. He believes it will aid good builders and developers in their recovery from the financial crisis.
Other companies, such as Celsius' largest investor Simon Dixon, would like to join the fund and contribute to making it decentralized with the crypto community.
In October, Binance Pool announced a $500 million lending facility for struggling bitcoin miners. The crypto miners suffered a serious financial crisis after crypto prices, particularly Bitcoin, collapsed by more than 75% from their all-time high.
Crypto Market Recovers
Binance's BNB token price rises by more than 5% as a result of the announcement. The BNB token is currently trading at $282. BNB's low and high for the day are $268 and $283.7, respectively.
Bitcoin and Ethereum prices have also recovered dramatically. The price of Bitcoin (BTC) has risen by more than 5.5% in an hour, and it is currently trading at $16,741. Also, the price of Ethereum (ETH) is trading at $1,260, up roughly 7% in an hour. Other altcoins have risen in value as a result of the rise of leading cryptocurrencies.
Will the crypto market sustain its positive momentum after CZ’s announcement? Share your views in the comment section below.
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