Changpeng Zhao’ CZ’, Binance’s CEO, said that his firm is introducing a recovery fund to help revive the firm.
“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund to help projects which are otherwise strong but in a liquidity crisis. More details to come soon. In the meantime, please get in touch with Binance Labs if you think you qualify.”
Binance CEO CZ further said that more information about the matter would be announced later and that industry co-investors would access the funds.
“Also welcome other industry players with cash who wants to co-invest. Crypto is not going away. We are still here. Let’s rebuild,” he tweeted.
Justin Sun, Tron’s founder, said Binance’s new project would get support from Tron, Huobi Global, and Poloniex. Huobi Global confirmed this in their tweet where Justin Sun tweeted:
“So happy to have lunch with @cz_binance today during #G20BaliSummit! We discussed the current market volatility and agreed that it is essential to unite and build in tough times and get through it together!”
The announcement came one month after Binance Pool said it was putting $500 million in the form of a loaning facility for bitcoin miners struggling.
The announcement did well for the firm because Binance’s BNB Token token went up by 3% on the news. Additionally, after the information, Ethereum and Bitcoin increased by 4%.
On Monday, at the B20 Summit in Indonesia, CZ said that the regulators and the company should be responsible and own up to cleaning up its act.
Referring to current crypto market happenings as the inspiration for the initiative, CZ said:
“We will try to collect the other industry players together to form an industry association globally, and try to deal with some of the common standards in business, very soon.”
Binance is the world’s topmost blockchain network offering a digital asset exchange platform. Binance’s mission is to “be the infrastructure service provider in Crypto,” and it manages above 1.4 million exchanges per second.
Changpeng Zhao founded Binance in 2017 and registered it in the Cayman Islands. The firm was previously in China, but after China formulated crypto trading regulations, Binance relocated its headquarters out of China.
Binance offers crypto trading of above 600 virtual tokens and cryptocurrencies, for example, Binance Bitcoin( BNB), Lodgecoin (LTC), Ethereum (ETH), and Bitcoin (BTC).
Binance is one of the crypto platforms that has the lowest exchange costs. The ecosystem also has high liquidity and gives its customers, who use BNB cryptocurrency tokens, discounts.
Binance Coin (BNB)
It is a cryptocurrency that crypto traders can use to pay fees and trade on the Binance platform. It can also be exchanged for other cryptocurrencies, such as Bitcoin, Litecoin, and Ethereum.
BNB was made in July 2017 and was previously functional on the Ethereum network with an ERC-20 token before it became Binance’s currency.
BNB is used for trading, credit card payments, paying transaction costs on Binance, processing payments, loan transfers, and booking travel arrangements.