Binance kickstarts recovery fund to help Crypto Projects with liquidity issues
As the crypto market continues to grapple with the negative effects of the FTX crisis, crypto exchange Binance has announced it is creating a fund to help potentially strong projects that are struggling with liquidity.
In a tweet, Binance CEO Changpeng Zhao said that the fund aims to reduce the cascading negative effects of the collapse of FTX by helping projects that the Binance CEO described as “strong, but in a liquidity crisis.”
Although Zhao did not provide information on which projects would qualify for the fund, he clarified that teams who believe they may fit the criteria should contact Binance Labs, the VC arm of the exchange.
He also solicited support from other industry players interested in co-investing to get in touch with them. In his words "Crypto is not going away. We are still here. Let's rebuild."
While responding to a tweet by a crypto community member asking why FTX would qualify for the fund, Zhao clarified that the fund is not for FTX, but for other projects within the crypto ecosystem, adding that “liars or fraud never qualify as strong projects.”
