Changpeng Zhao, the CEO of Binance, has said that the world’s largest cryptocurrency exchange has plans to launch a fund to help crypto projects that are facing a liquidity crisis in the wake of the collapse of rival crypto exchange FTX and added that industry regulation is needed
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Binance Pledges to Create Crypto Industry Recovery Fund
Changpeng Zhao, known throughout the decentralised finance world as CZ, is the CEO of Binance, the world’s largest cryptocurrency exchange, and has announced that they plan to launch a fund to help crypto industry ventures who are facing a liquidity crunch in the fallout from the collapse of the major cryptocurrency exchange, FTX, in the past week.
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In a tweet, CZ said, “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”. He added, “Also welcome other industry players with cash who wants to co-invest. Crypto is not going away. We are still here. Let’s rebuild.”
We await more details, but it seems that Changpeng Zhao and Binance are affirming their place as the dominant, global crypto exchange and decentralised finance industry White Knight!
Binance Calls for Regulation
CZ has called for regulation in the cryptocurrency industry and indicated that this is not just from external regulation, but better self-governance. At a gathering of G20 leaders at a summit in Bali on Monday, Zhao made the case for new, clear and stable regulations for the decentralised finance industry, given the very recent developments and with industry participants “cutting corners“. He started, “We’re in a new industry, we’ve seen in the past week, things go crazy in the industry,” adding “We do need some regulations, we do need to do this properly, we do need to do this in a stable way.”
Changpeng Zhao Points Finger at Sam Bankman-Fried
CZ had tough words on FTX founder and former CEO, Sam Bankman-Fried, stating “Sam lied to his employees, shareholders, users, to regulators all over the world.” Furthermore, the CEO of Binance implied that he believed that Bankman-Fried was the source of a November report from Reuters that indicated Iran had in recent years avoided U.S. sanctions using the Binance network. Changpeng Zhao said, “We have evidence” that reporting from Reuters was swayed by information from Currency.com, the cryptocurrency exchange in which FTX was an investor.
