The FTX collapse has affected the whole crypto industry quite badly and now the latest news in the town is that on 25th November, Binance announced to give $1 Billion as the recovery fund. In a meeting, Binance chief Changpeng Zhao stated that the fund would have a free structure and other industry players will also be able to contribute as it will be publicly visible on the blockchain.
Binance is the most popular and the biggest crypto trading platform when it comes to the trading volume. The platform allows users to buy or sell various digital currencies. Along with this, users also have the ability to review and compare other crypto options to do the trading. With $40 billion daily trades, Binance has become the world’s biggest trading platforms.
The decision to add the amount to the recovery fund was made to guarantee the industry’s smooth operation and ease of workflow. This takes place following the forced bankruptcy of FTX, the business owned by Sam Bankman-Fried. The crypto world saw a development of a rescuer-like figure, Zhao, who has placed cash in a ton of struggling crypto companies, for example BlockFi & Voyager Digital.
It’s NOT an Investment Fund!
Many people were assuming that it can be an investment fund by Binance but, Binance clearly attested that the fund isn’t an investment fund in any way as its only point is to support and provide help to projects and organizations. Binance added that this fund is for those companies that are facing short-term, financial difficulties that too after no fault of their own. The FTX meltdown’s “cascading contagion effects” must be stopped, according to Zhao.
The fund is expected to remain in operation for approximately six months, and contributions are welcome to apply for additional funding. According to Binance, the investment structure is “flexible. According to a report by CNBC, approximately 150 companies have already submitted applications to take advantage of the fund. “We expect individual situations to require tailored solutions,” Binance stated.
Polygon Ventures, Jump Crypto, and Animoca Brands, among other crypto-native investment firms, have contributed approximately $50 million to their respective commitments, as reported by CNBC.” We do this transparently,” stated Changpeng Zhao, the CEO of Binance. This means that anyone can see what amount is being contributed to the fund. With such an amazing support, we really hope that the FTX collapse effects will soon vanish away from the crypto industry.