On the 14th of November 2022, CZ, the CEO of Binance came out to make an announcement on Twitter. He said that Binance labs would be building a mechanism to save projects in a liquidity crisis.
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
With the able passing of FTX, the crypto space is still in shock. Reeling from the effects of having a previously strong exchange crumble, CZ announced intentions to mitigate the negative effects of such a crash.
Binance would be forming what it calls the Industry Recovery Fund. the aim is to protect projects that are otherwise strong, but experiencing issues with liquidity. He then opened up the doors, both to projects that would need such help and those who intend to support the initiative by investing.
Earlier in the year, CZ had shown interest in investing, bailing out, and saving web3 projects. And like a hoodie-wearing crusader, he has reinstated the idea, this time pushing harder with the collapse of a former giant.
Though he didn’t stipulate the size of the recovery funds, its scope, or how it is going to be disbursed.
The announcement was taken with a mix of happiness and skepticism. A Twitter user, with the handle Crypto king had this to say.
He was asking how can a project be seen as strong when it is undergoing a liquidity crisis. What if it is just another project like FTX, that kept printing insolvent tokens that served as marginalized loans?
In response, CZ brought things back to the matter of requirements and qualifications. How does one qualify? He said that liars and scam projects aren’t what he considers strong projects.
A clear dig at SBF.
And such projects would never qualify. The Industry Funding is for other honest members of the industry. Others on the other hand still blame CZ for the collapse of FTX. they responded this way.
He kills us, just so he can save us.
— Downsin (@DeFiDownsin) November 14, 2022
He killed us so he can save us. Those were the words of DefiDownsin, a sentiment am certain more people might share.