Binance creates fund to support projects affected by FTX

Binance is reportedly working on a recovery fund to assist projects affected by the FTX incident. The capital will be used only for projects that have solid foundations but have experienced liquidity problems.

The collapse and subsequent bankruptcy of the exchange FTX shook the economics of the cryptocurrency ecosystem and its users.. Fear and mass withdrawals caused a general decline in asset values, leaving a bleak picture in which few cryptocurrencies did not gradually decline in value.

This problem has not only affected major assets such as BTC or ETH, which are down 19% and 20% respectively in the past 7 days, but also smaller assets. These smaller projects have suffered even greater losses than the larger assets due to the smaller volume and market capitalization of these assets.. A week after the problems for FTX began, many projects are experiencing liquidity problems due to the market situation.

Support projects that have been affected by what happened to FTX, Binance announced the launch of a new recovery fund for the industry. The capital will be used to assist sound projects that are in liquidity crisis due to the negative effects caused by FTX.. For the time being, the fund remains only in a proposal, it was announced by Changpeng Zhao, CEO of Binance, so it looks like it will finally become official.

Binance has asked that projects that they believe are eligible for the fund be communicate directly with the Binance Labs extension.. The fund can also be applied for by new projects that want to land in the digital asset sector.

To conclude the statement, CZ wanted to encourage the entire cryptographic community with the following words.

“Cryptocurrencies will not disappear. We are still here. Let’s rebuild“.

Continue reading the judicial investigation FTX is facing in the Bahamasmight be of interest.