Changpeng Zhao, popularly known as CZ and the founder of Binance, the largest blockchain ecosystem and largest digital assets exchange by trading volume has set out to help revitalize fallen crypto projects, which went out of business as a result of liquidity crunches and bankruptcy.
It's worth noting that this remedial development comes as a result of the collapsed and bankrupt FTX crypto exchange, which is currently out of business, leaving many investors wrecked and affiliated companies shattered.
To this end, CZ Binance said on Monday that the crypto exchange will set up a purse dubbed 'Industry Recovery Fund'. These funds would be issued out to solid crypto projects who are bankrupt in order to help them rebuild. The Binance founder and CEO urged other top industry players to support the movement.
Per the update, CZ requested crypto projects who are eligible for these support funds to reach out for further screening. The amount to be given out to these qualified blockchain projects is yet to be announced as well as the number of companies the program would support. However, CZ noted that more details regarding the forward-moving initiative would be shared subsequently.
Changpeng Zhao of Binance crypto exchange said;
“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. Also, welcome other industry players with cash who want to co-invest. Crypto is not going away. We are still here. Let’s rebuild.”
In the meantime, only Justin Sun, the founder of Tron (TRX) and creator of the stablecoin USDD has publicly announced support for the industry recovery fund plan. Hopefully, more players in the nascent space would join CZ Binance and Justin Sun to help bring useful crypto projects alive.
Justin Sun tweeted;
"Tron DAO, Huobi Global, and Poloniex echo CZ Binance's initiative to participate in this industry recovery fund and help good builders and developers to recover from the crisis.
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Among the crypto projects that suffered insolvency problems that led to the filing for bankruptcy are Celsius Network, Voyager, and Three Arrows Capital (3AC). Notably, the Terra collapse in May triggered the fall of the mentioned ecosystems.
With initiatives like the one introduced by CZ Binance regarding recovery funds, there could be hope for great projects that suffered unfortunate problems.
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