TheCable

Binance, a cryptocurrency exchange, says it is planning to form a recovery fund to help crypto projects facing a liquidity crisis.

Changpeng Zhao, Binance’s chief executive officer (CEO), announced this in a series of tweets on Monday.

The announcement comes days after FTX, a rival cryptocurrency exchange, filed for bankruptcy.

Prior to the bankruptcy filing, Binance had intended to acquire FTX.

However, after performing due diligence, the company decided to abandon the deal, citing reports of FTX mishandling customers’ funds, and investigations by U.S. authorities.

In the tweet on Moday, Zhao said the fund is aimed at reducing the cascading negative effects of FTX, by helping industry players experiencing a liquidity crunch.

He said the fund is open to industry co-investors, adding that more details would be announced in the coming days.

“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,” the tweet reads.

“Also welcome other industry players with cash who wants to co-invest. Crypto is not going away. We are still here. Let’s rebuild.”

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

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Meanwhile, checks by TheCable showed that the prices of bitcoin dropped by 0.65 percent to $16,469 on Monday.

Similarly, Ethereum fell by 0.4 percent to $1,234, according to data obtained from coinmarketcap.com.