There has been a lot of uproar in the blockchain industry due to the abrupt collapse of FTX and the subsequent resignation of the former CEO, Sam Bankman-Fried.
Nevertheless, crypto experts and enthusiasts have continued to show their support in the face of the current challenges. In this regard, the CEO of Binance, Changpeng Zhao has launched a recovery fund to support crypto projects experiencing a liquidity crunch.
Zhao said on Twitter that Binance is ready to create an industry of recovery funds in the crypto ecosystem to assist projects with strong assets but experiencing liquidity issues in an effort to lessen the burden that has been placed on them due to the negative effect the collapse of FTX has brought upon them.
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
He further asked interested firms to communicate with Binance Labs if they are sure that they meet the requirements.
Zhao further emphasized the need to preserve the crypto industry. He, therefore, welcomed other crypto experts and stakeholders to join him with funds, so they can co-invest to rebuild the crypto ecosystem once again.
Efforts Launched to Rebuild the Crypto Ecosystem
Justin Sun, founder of TRON has also pledged its support to the crypto space in the face of market volatility by offering to assist FTX with billions in aid. Sun however stated that the funding would only be released after due diligence had been conducted by him.
Poloniex Exchange, a crypto trading platform based in Boston, Massachusetts announced via Twitter that they are also ready to join the efforts with Binance to rebuild the crypto space because they believe joint efforts can be very effective during times of travail.
During the dark times, joint efforts can be especially effective. Poloniex will become a part of this initiative and contribute to the industry recovery🤝 https://t.co/deDxVP8DFm
— Poloniex Exchange (@Poloniex) November 14, 2022
The blockchain industry’s sustainability and the protection of cryptocurrency users also depend on regulators around the world doing their jobs by ensuring that laws governing the crypto space are upheld. The White House has asked regulators to make sure that laws are being kept in this regard, citing the collapse of FTX as an illustration.
White House Press Secretary Karine Jean-Pierre reaffirmed the necessity of fundamental crypto regulations during a press briefing. He reiterated that the Biden administration has consistently warned its citizens about the dangers and uncertainty involved with trading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and others because of their volatility and susceptibility to digital crime.
