The tragic collapse of the FTX empire caused shockwaves across the industry. While Binance emerged as a saving grace, the exchange soon realized that FTX was beyond repair. Changpeng Zhao’s platform, however, wanted to elevate this initiative. Therefore, the exchange previously announced the launch of an “industry recovery fund.” Appearing in a recent interview, CZ stated that a whopping $1 billion would be poured into the aforementioned fund.
The industry fund was put in place in order to minimize the strain caused by the downfall of FTX. Binance is reportedly prepping to allocate $1 billion for the purchase of distressed cryptocurrencies. In addition to this, CZ affirmed that they would pour in more money if this did not suffice. Zhao added,
“If that’s not enough we can allocate more.”
Further highlighting that the fund would soon be set up, CZ said,
“We are going with a loose approach where different industry players will contribute as they wish.”
Back when Binance made this announcement, Tron Foundation’s Justin Sun was one of the first individuals to volunteer to aid this initiative.
Additionally, he noted how he blamed himself for being late on the whole FTX situation. Zhao suggested that the industry let “FTX get too big before we started questioning some of those things.”
FTX contagion persists but the industry is “fine”
Along with the $1 billion allocation announcement, CZ noted that the firm would be buying the assets of certain companies over the next 6 months. However, Genesis seemed to be out of this bracket. While Genesis is on the verge of bankruptcy and had previously urged Binance to invest in it, the latter declined.
Genesis was clearly hit by the collapse of both Three Arrows Capital and FTX. Speaking about the FTX contagion, CZ further added,
“Whenever one big player goes down, especially a trading platform, there are many people and institutions with money on the platform. We have seen Genesis halting withdrawals, probably there will be one or two more. However, the cascading effect will become smaller. Overall, the industry is fine.”
He was bullish like most industry proponents about the crypto market recovering.