Binance founder and CEO Changpeng Zhao in a Monday update introduced a flagship project dubbed ‘Industry Recovery Fund’. This development, triggered by the collapse of the popular crypto exchange, FTX Trading Limited, sets out to revitalize reputable crypto projects facing liquidity crises.
Crypto projects who fall into this category are encouraged to contact Binance Labs for further screening. Whereas some members of the Terra Classic (LUNC) community think the embattled project fits into the category and thus, qualified to request the recovery fund from Binance, the Terra Rebels group have canceled such hopes, urging the community to desist from sending requests to the Binance Chief.
“Terra Rebels team is not eligible for these funds. Please do not spam CZ in these regards. We appreciate the support from the community regardless,” ReXx, a top Terra Rebels member wrote.
Binance Sets Up Industry Recovery Fund
In recent times, many solid crypto projects have been forced to fold up due to insolvency and bankruptcy problems. Notably, the implosion of the Terra ecosystem in May led to the fallout of many once-thriving companies like Celsius Network, Voyager, and Three Arrows Capital (3AC), which left many investors wrecked.
Considering that these scenarios are huge setbacks to the nascent crypto space, Changpeng Zhao (CZ), the founder of Binance, believes it is wise to get these useful blockchain projects back on their feet. In a Monday Twitter thread, he wrote:
“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.”
“Also welcome other industry players with cash who want to co-invest. Crypto is not going away. We are still here. Let’s rebuild.”
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. 1/2
— CZ 🔶 Binance (@cz_binance) November 14, 2022
In response, Justin Sun, the founder of Tron and stablecoin USDD declared his support for the revitalization plan. He added that all his affiliated companies like Huobi Global, TronDAO, and Poloniex would contribute to the industry recovery fund purse..”Tron DAO, Huobi Global, Poloniex echo CZ Binance’s initiative to participate in this industry recovery fund and help good builders and developers to recover from the crisis,” Justin Sun said.
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 14, 2022