Binance to Launch Industry Recovery Fund for Struggling Projects
- Binance CEO Changpeng “CZ” Zhao announced the fund on Monday, noting that it will target potentially strong projects that are facing a liquidity crisis.
- Tron founder Justin Sun was amongst the first to express his support for the fund by saying that Tron, Huobi Global, and Poloniex will join the initiative.
Binance CEO Changpeng Zhao. CryptoMonedaseICOs
Popular cryptocurrency exchange Binance is setting up a fund to help the crypto industry recover after the recent collapse of rival FTX, Binance CEO Chanpeng “CZ” Zhao said via Twitter on 14 November.
According to the announcement, Binance’s industry recovery fund is aimed at reducing the cascading effect that has negatively influenced the crypto markets after the start of the FTX crisis. The goal of the fund will be to help projects that are “otherwise strong” but have been affected by a liquidity crisis, and while no information was given as to which projects would qualify, CZ invited other industry players to join the newly created fund.
Only minutes after the announcement was made, Tron founder Justin Sun echoed CZ’s desire to help “good builders and developers” to recover from the current crisis, noting that Tron, Poloniex, and Huobi Global — which later confirmed the news — will support Binance’s industry recovery fund.
The news comes after the collapse of troubled cryptocurrency exchange FTX, which last week filed for Chapter 11 bankruptcy protection alongside 130 companies connected to the wider FTX Group. The fallout from this event affected not only users of FTX, but the entire crypto market, with Bitcoin (BTC) and Ether (ETH) going down in price by around 20% in the last seven days.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.