On November 14, Binance CEO Changpeng 'CZ' Zhao said that the exchange would launch an industry recovery fund to assist strong projects in a liquidity crisis.
CZ made the statement in response to the recent bear market liquidity shortage that has impacted various cryptocurrency projects, pushing some of them out of business.
CZ stated that the fund would be open to other industry players that choose to invest. He also stated that further details regarding the effort would be released soon.
CZ has asked projects that believe they are eligible for the money to contact Binance Labs.
CZ stated in June that Binance was prepared to help industry participants survive and develop even if the firm did not benefit from such assistance.
Binance Pool also created a $500 million loan facility to help the cryptocurrency mining business.
Crypto community praises CZ initiative
The crypto community has embraced CZ's effort, with many hailing it as a positive step forward.
Justin Sun, the founder of Tron (TRX), stated that his two exchanges, Huobi Global and Poloniex, would participate in the project. Sun stated:
“(We would) contribute to this industry recovery fund in order to assist good builders and developers in recovering from the crisis!”
Meanwhile, some questioned the proposal, wondering how Binance would evaluate “strong projects.” Some further stated that the fund should not bail out projects experiencing a liquidity crisis because it demonstrates their failure.
