Since the demise of the cryptocurrency exchange FTX, Changpeng Zhao, the CEO of Binance, has been aggressively pushing to establish a recovery fund to aid struggling but fundamentally sound businesses. Additionally, Binance has increased its planned fundraising from $1 billion to $2 billion.
Zhao stated in an interview on November 24 that the cryptocurrency recovery fund will include co-investors to support crypto ventures that are experiencing a liquidity crunch. We’re taking a flexible approach, in which different business actors may contribute in any way they see fit, he added.
A total of $50 million has already been pledged by some well-known companies, including Polygon Ventures, Jump Crypto, Animoca Brands, Aptos Labs, Kronos, GSR, and Brooker Group. The CEO of Binance stated that he wants to minimize the harm that the collapse of FTX would do to the cryptocurrency industry.
Although the CEO of Binance is using this chance to increase his reputation in the cryptocurrency industry, the fact that his tweets were the catalyst for the turn of events at FTX has raised some concerns. Additionally, several UK legislators have requested Binance to provide an explanation of the facts surrounding Zhao’s comments from November 6.
