- Binance Starts Recovery Fund for Crypto Projects Facing Liquidity Crisis.
- This fund is accessible to industry co-investors.
- The revelation was well received by the cryptocurrency market.
Monday morning’s market circumstances changed to be optimistic. An industry recovery fund has been launched according to CZ, the CEO of Binance. CZ stated:
“To reduce further cascading negative effects from 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,”
“Also welcome other industry players with cash who wants to co-invest. Crypto is not going away. We are still here. Let’s rebuild.”
This fund is accessible to industry co-investors, according to CZ, who also stated that further information would be released in the upcoming days.
According to Justin Sun, the creator of Tron, Huobi Global, and Poloniex would back Binance’s proposal. This was also verified by Huobi Global in a tweet.
This statement follows Binance Pool’s declaration a month earlier that it would provide a $500 million credit facility for struggling bitcoin miners.
The revelation was also well received by the cryptocurrency market, which increased by $41.6 billion as a result. The cryptocurrency market had seen a gloomy morning, falling to a low of $757.9 billion before rising to a high of $799.5 billion.
It is significant to remember that Bankman-Fried and his business are the subjects of an inquiry. The Securities and Exchange Commission and the Department of Justice are conducting the probe.
The focus of the inquiries is probably on the likelihood that the company broke US securities law. This was done by using client deposits to finance wagers at Bankman-hedge Fried’s fund, Alameda Research.
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