Crypto exchange Binance has allocated another $1 billion for its industry recovery fund, increasing the size to over $2 billion.
CZ, Founder and CEO of Binance, announced the news via Twitter.
In fact, the move comes at a time when the crypto market is teetering from the collapse of FTX, which is seeking Chapter 11 bankruptcy protection in the United States. Aptos Labs, Jump Crypto, along with other prominent crypto companies joined Binance’s initiative and will contribute $50 million to the fund.
“We anticipate this initiative will last about six months and will be flexible on the investment structure — token, fiat, equity, convertible instruments, debt, credit lines, etc,” the crypto exchange added in a statement.
Zhao said while speaking at a conference in Abu Dhabi last week that there was significant interest from industry players in a recovery fund his company plans to launch to help cryptocurrency projects facing a liquidity squeeze, following the collapse of rival FTX.
He said such a fund would help “reduce further cascading negative effects of FTX”.
Several crypto firms have been bracing for the fallout from the FTX collapse, with many counting their exposure in millions to the beleaguered exchange.