The CEO of Binance’s CEO Changpeng Zhao in his recent tweet revealed that the Binance platform wants to start a fund for the entire cryptocurrency industry and mainly for all the cryptocurrency exchange’s liquidity crunch issues.
The fund will be called the “Industry recovery fund” and will be used as the support fund for all the companies who will be having issues managing their balance sheets in temporary situations or market functions in the crypto industry.
As the crypto industry has been grappling with the turbulence caused by the fall of cryptocurrency Terra this year in may. It has witnessed the next big burst with the failure of cryptic currency exchange FTX in the market.
The prices of the FTX tokens were plummeting from their ultimate high of $84 to the mere value of $2-$3 in the last 4 days. The FTX platform has filed for bankruptcy and the CEO of the company has also stepped down from his position because of the irregularities caused in the company.
The cryptocurrency exchange company Binance wants to stop the situations like the FTX to happen in the future with any of the cryptocurrency companies. Binance wants the funds created by the company in collaboration with other rival companies for the same will and for the help of the crypto industry.
This will help the crypto industry to act smoothly on any of the market shocks like FTX or Terra collapse in the future of the crypto market. This “Industry recovery fund” will help the companies to receive that temporary iniquity crunch in the company.
The collapse and the bankruptcy of the FTX platform have resulted in showcasing loopholes and the working issues in the market and this move of Binance with other crypto companies will help the market to keep intact the trust factor for the crypto industry.
As per the CEO of Binance, Changpeng Zhao “The industry recovery fund will help the cryptocurrency exchange company’s temporary projects who are strong in their foundations but are facing a temporary liquidity crunch in their operational parameters”.
Changpeng Zhao also called CZ in the crypto industry has welcomed all interested companies for the co-invest option into this fund. He also mentioned, though the crypto industry has been facing the doldrums, it is not going anywhere and it will still be the future payment system for the world.
CEO of Binance, Changpeng Zhao mentioned that he won’t be allowing the FTX platform in this fund citing that the company does not the criteria of a “strong” foundation.
