fbpx
Skip to content Skip to sidebar Skip to footer

Binance Announces Fund To Support Crypto Firms Hit By FTX

Binance CEO Chanpeng Zhao on Monday said that his exchange will constitute an industry recovery fund to prevent the cascading effect of FTX and hurt the crypto industry further.

“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,” he said in a tweet.

He invited other industry players to participate in the fund and rebuilt the industry.

Media reports said that Tron founder Justin Sun was the first to endorse CZ’s proposal and pledged his participation in the initiative. Sun said his other firms – Huobi Global and Poloniex – will also support the fund.

Binance’s industry recovery initiative comes in the wake of FTX filing for Chapter 11 bankruptcy protection and a slew of companies claiming to have their funds trapped bankrupt FTX.

The fall of FTX preceded a public announcement by CZ on Twitter that Binance is liquidating all its FTT holdings. And soon 23 million FTT tokens worth $583 million were off-loaded on Binance. CZ said his decision to dump FTT was in the light of revelations and part of risk management, learning from the Luna experience.

CZ’s reference to “revelations” was about media reports that said FTX’s sister concern Alameda Research had overexposure to FTT.

 

Leave a comment

About SuperCryptoNews

SuperCryptoNews is a global leading blockchain & crypto news provider, covering daily news focused on trading and investment developments in bitcoin and crypto. We bring you expansive crypto news coverage around the world. We offer many thought leadership opinions from blockchain experts and leaders of the industry.

Subscribe to SCN

© Copyright of Novum Global Consultancy Pte Ltd {2020, 2021}. All rights reserved.

111 North Bridge Road, 21-01, Peninsula Plaza, Singapore 179098.

Phone: +65-80282938

Contact Us   |   T&Cs   |   Privacy Policy   |   About Us

About SuperCryptoNews

SuperCryptoNews is a global leading blockchain and crypto news provider, covering daily news on the latest tech and trading developments in crypto. We bring you expansive crypto news coverage especially in Asia, with a focus on Singapore, Thailand and Southeast Asia.

Follow Us On

© Copyright of Novum Global Consultancy Pte Ltd {2020, 2021}. All rights reserved.

Contact Us   |   T&Cs   |   Privacy Policy   |   About Us