Binance Create Crypto Rescue Fund Aiming to Raise $1 Billion
Binance Create Crypto Rescue Fund Aiming to Raise $1 Billion.
Following FTX’s bankruptcy, Binance’s CEO and founder said the firm would set up a crypto rescue fund with a $1 billion initial allocation to distribute among struggling players.
The fund may increase up to $2 billion
Changpeng ‘CZ’ Zhao told Bloomberg the fund will have a transparent blockchain-based structure and other industry players can contribute as well.
“The industry needs saving now, not in 2023,” CZ said. He also said that once the $1 billion has been invested, the team will determine how far it can go before injecting more money.
“Roughly, we’re thinking of setting up $1 billion first, and if that’s not enough we’ll allocate more. If after six months there’s unused funds and there’s not that many projects–hopefully the industry will have recovered by then–we can withdraw it back,” he explained.
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On Thursday, Binance revealed further details about its industry recovery fund. In a blogpost, the company said that the fund may be increased to $2 billion in the future if needed.
Additionally, Jump Crypto, Polygon Ventures, and Animoca Brands have committed $50 million to the project.
Crypto twitter response
On November 14, the exchange executive announced the launch of an “industry recovery fund” and received a great deal of interest from the crypto community.
“I would like to join the fund @cz_binance . Let’s make sure we don’t centralise the industry too though. Let’s make this an industry effort,” said BankToTheFuture CEO Simon Dixon on Twitter.
Similarly, Justin Sun, the founder of Tron also tweeted his intention to join the move, “.@trondao @HuobiGlobal @Poloniex echo @cz_binance’s initiative to participate in this industry recovery fund and help good builders and developers to recover from the crisis! ❤️.”
.@trondao @HuobiGlobal @Poloniex echo @cz_binance's initiative to participate in this industry recovery fund and help good builders and developers to recover from the crisis! ❤️
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 14, 2022
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There are, however, still a few crypto users who are unsure about this fund’s effectiveness.
“Is this good? This would be like a government bailout. Every market needs to weed out those companies that should be gone for the good of the market. It’s been happening now in crypto. Pain now will be good for the long-term health of crypto,” said one Twitter user.
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