Binance CEO Changpeng “CZ” Zhao announces crypto-currency market stimulus fund

On Monday, Binance CEO “CZ” announced the creation of an industry recovery fund as the FTX crisis shakes the crypto-currency market. The Binance Recovery Fund will help long-standing successful projects affected by the liquidity crisis. Crypto-currency platforms can contact Binance Labs to verify their qualification for the market recovery fund.

In addition, Binance’s CEO also asked other companies to co-invest in the stimulus fund and help revive the market. Crypto prices collapsed and institutional investors lost confidence after one of the largest crypto exchanges FTX filed for Chapter 11 bankruptcy.

Crypto market rebounds as Binance CEO announces industry stimulus fund

The crypto-currency market continues to slide downward after the FTX crisis. Moreover, the contagion has spread to other entities as they fail to recover from previous Terra-LUNA and liquidity crises, Binance is no exception.

Due to the slowdown in the crypto-currency market, the CEO of Binance “CZ” announced in a tweet on November 14 an industry stimulus fund and urges other investors to co-invest.

“To further reduce the cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects that are otherwise strong but in a liquidity crisis. More details will be available soon. In the meantime, please contact Binance Labs if you think you may be eligible.”

Tron founder Justin Sun, seeks to support and participate in the Binance CEO’s initiative to turn the market around. He believes this will help good builders and developers recover from the crisis.

Other entities, including Celsius’ largest investor, Simon Dixon, want to join the fund and help make it decentralized with the crypto community.

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Twitter user Crypto King asked if FTX can be called strong but in a liquidity crisis. The CEO of Binance replied that “liars or fraudsters never qualify as strong projects. This is about other projects in the ecosystem.

In October, Binance Pool disclosed $500 million in the form of a loan facility for struggling bitcoin miners. Crypto miners have been facing a severe financial crisis after crypto prices, particularly bitcoin, fell more than 75 percent from their all-time high.

The crypto-currency market is recovering

The price of Binance’s BNB token jumps more than 4% following the news. The BNB token is currently trading at $280. The 24-hour low and high for BNB are $268 and $281.77 respectively.

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Bitcoin and Ethereum prices have also rallied massively. The price of bitcoin (BTC) has soared more than 6% in an hour, with the price currently trading at $16,789. Similarly, the price of Ethereum (ETH) is trading at $1,253, up nearly 7% in an hour. Other altcoins have also skyrocketed following the jump in major cryptocurrencies.

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