Binance, the world’s largest cryptocurrency exchange, is planning to raise roughly $1 billion for its industry recovery fund to scoop up distressed assets amid the current FTX contagion, according to a Bloomberg report on Thursday, citing an interview with the company’s CEO, Changpeng Zhao (CZ).
Recall that Binance previously announced the launch of an industry recovery fund to bail out crypto projects that are strong but in liquidity crisis following the FTX contagion. At the time, CZ called on other industry players with cash to co-invest in the recovery fund.
Binance to Raise $1B or More to Save Struggling Projects
According to the latest report, Binance is now aiming to raise $1 billion for the fund with the possibility of raising more if it’s not enough.
“If that’s not enough, we can allocate more,” CZ said.
CZ also noted that the fund will be launched soon and that Binance has discussed it with several industry players.
“We are going with a loose approach where different industry players will contribute as they wish,” he said.
FTX, which faced a liquidity crisis and filed for bankruptcy earlier this month, was once termed the crypto “white night” for bailing out struggling crypto projects during the bear market. However, its dramatic collapse has sent shockwaves through the industry, with a handful of crypto projects struggling to stay afloat.
For instance, crypto firms, including BlockFi, and Genesis, are reportedly preparing for a possible bankruptcy following FTX implosion.
Not the First
Meanwhile, Binance has proven to be a key player in the crypto world as this is not the first time it will be launching a fund to help struggling crypto projects in light of the current market conditions.
Coinfomania reported in October that the crypto exchange launched a $500 million lending project to support Bitcoin (BTC) mining and infrastructure providers. Per the report, the project aims to provide loans for both private and public-listed Bitcoin mining companies. The loan includes an interest rate ranging from 5% to 10%.
