Binance aims to allocate $1 billion for crypto recovery fund

Please fol­low and like us:
Pin Share

Binance intends to allo­cate $1 bil­lion for a pro­posed indus­try recov­ery fund while its CEO revealed intent in a new bid for assets of bank­rupt cryp­tocur­ren­cy lend­ing firm Voy­ager by its U.S.-based business.

Speak­ing to BloombergTV on Nov. 24, Binance CEO Chang­peng Zhao touched on a num­ber of top­ics in what has been a tumul­tuous month for the cryp­tocur­ren­cy ecosystem.

Chief among them was Binance’s pro­posed indus­try recov­ery fund which is aimed at pro­vid­ing finan­cial sup­port to promis­ing projects in finan­cial dis­tress. The exchange’s founder intro­duced the idea in the wake of FTX’s now-infa­mous col­lapse.

Relat­ed: Binance CEO denies report firm met with Abu Dhabi investors for cryp­to recov­ery fund

Zhao said that details of the fund were due to be pub­lished on the exchange’s blog in the com­ing days, adopt­ing a fair­ly “loose” struc­ture with con­tri­bu­tions from oth­er mem­bers of the cryp­tocur­ren­cy ecosystem:

“There’s been back and forth on how to struc­ture that, do we make it a loose fund or an actu­al fund? I think we’re kind of going with a loose approach where dif­fer­ent indus­try play­ers will con­tribute as they wish.”

The fund will be pub­licly view­able accord­ing to the Binance CEO, with con­trib­u­tors set to send funds to a cen­tral, trans­par­ent blockchain address. Zhao also not­ed that the fund is expect­ed to go live before the end of 2022, while tout­ing a six-month road map with­in which he expects to see the indus­try recover. 

The report also not­ed that Binance.US is inter­est­ed in a new bid for assets belong­ing to the now-bank­rupt Voy­ager Dig­i­tal. The lend­ing firm was one of a hand­ful to go bust in the wake of the Ter­ra col­lapse in May 2022. 

The Binance CEO also said that the exchange would con­sid­er a sec­ond look at some assets or busi­ness­es belong­ing to FTX. Binance con­sid­ered a deal to buy out Sam Bankman-Fried’s exchange before its spec­tac­u­lar col­lapse in Novem­ber 2022.

Zhao said that FTX had invest­ed in a num­ber of projects, some of which may “be sal­vage­able” and of inter­est if and when they become available.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published.