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. 1/2
— CZ 🔶 Binance (@cz_binance) November 14, 2022
According to a tweet by the Chief Executive Officer (CEO) of Binance, Changpeng Zhao popularly known as CZ, the fund will be made available to projects who are otherwise strong but going through a liquidity crisis.
“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,” Zhao tweeted
Noteworthy, the fund will be disbursed through the venture capital arm of the exchange, Binance Labs.
Therefore, interested and qualified projects can now reach out to Binance Labs. Full details about the recovery fund are yet to be disclosed but Zhao has promised to release them in the coming days. The fund is available to industry co-investors who wish to plunge in their cash and build the crypto industry together with Binance.
So far, Huobi Global which released an asset transparency report, Tron and Poloniex have declared their intentions to support Binance in this massive project. Tron founder Justin Sun announced this on Twitter, while Huobi Global confirmed the news in another tweet.
Binance Unveiled $500M Miners Lending Fund
This news comes barely a month after Binance unveiled a $500 million fund for the Bitcoin (BTC) mining industry. The $500 million fund was introduced as a lending project to offer financial assistance to miners. Those who qualify for the mining fund are public and private ‘blue-chip’ BTC mining companies as well as other digital asset infrastructure providers globally.
The mining loan which spans between 18-24 months, attracts an interest rate range of 5-10% unlike that of Maple Finance, a Decentralized Finance (DeFi) platform which requires an interest rate of 15-20%. Binance’s plan to launch an industry recovery fund came after the collapse of the Bahamian cryptocurrency exchange FTX which was due to a liquidity crunch.
For Binance exchange, this initiative may be part of its previously planned projects included under the $1 billion which the firm announced last month to spend in the coming months.