Changpeng Zhao, the CEO of Binance, said in a tweet that Binance will create the fund to assist “otherwise solid but liquidity-challenged” businesses.
Binance will introduce a new fund to aid crypto startups experiencing liquidity shortages. Changpeng Zhao, CEO of Binance, tweeted the news early on November 14.
“To minimize additional cascading negative impacts of FTX, Binance is establishing an industry recovery fund to assist projects in a liquidity crisis that are otherwise robust. More information will be forthcoming,” said Zhao, adding that qualified projects should contact Binance Labs, the venture financing arm of the exchange.
In another tweet, Zhao invited crypto investors who desire to donate to the fund to do so. The announcement comes as the aftermath of last week’s FTX crash continues to spread. DeFi initiatives, startups, exchanges, and investors are just a few of the enterprises that have been affected.
The crypto hedge fund Galois, the cryptocurrency investor Mechanism Capital, the cryptocurrency platform Matrixport, and the venture capital company Paradigm are among the most recent businesses to explain their stake.
Zhao, whose comments over the sale of FTT contributed to FTX’s liquidity issue, recently pledged to be more critical of competitors in the future.
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