Binance CEO Changpeng “CZ” Zhao has announced a new initiative by the exchange known as the ‘industry recovery fund’. The fund will assist crypto platforms in the case of a liquidity crisis.
In response to the downturn in the cryptocurrency market, Binance CEO “CZ” launched an industry recovery fund in a tweet on November 14 and urged other investors to co-invest.
“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.”
Justin Sun, the founder of Tron, intends to support and take part in Binance CEO’s effort to revive the market. He thinks it will assist competent builders and developers in overcoming the crisis.
Other organizations, such as Celsius’ top investor Simon Dixon, want to join the fund.
Twitter user Crypto King asked if FTX qualifies as strong but in a liquidity crisis. Binance CEO replied that “Liars or fraud never qualify as strong projects. This is for other projects in the ecosystem.”
Binance Pool revealed a $500 million financing program for struggling bitcoin miners in October. After the price of cryptocurrencies, particularly Bitcoin, collapsed by over 75% from its peak, the crypto miners found themselves in a dire financial situation.
Crypto market recovers
The news causes a 4% price increase for Binance’s BNB token. At this time, the BNB token is worth $282. BNB’s low and high points for the past day have been $268 and $281.77, respectively.
The value of Bitcoin and Ethereum also significantly increased. The price of Bitcoin (BTC) has increased by almost 6% in the past hour and is presently trading at $16,776.
Also, the price of Ethereum (ETH) is currently $1,263, up about 7% in the past hour. The increase in the leading cryptocurrencies also caused other altcoins to climb.