Binance CEO Changpeng Zhao’s proposal to form a recovery fund for the crypto industry is reportedly drawing a positive response from firms interested in contributing.
“There are players that have strong financials and we should band together; we’ve got significant interest so far,” Zhao said while speaking at a conference in Abu Dhabi, Reuters reported Wednesday (Nov. 16).
Details about the fund will be released over the next two weeks, according to the report.
At present, Zhao declined to name any other organizations that are interested in the recovery fund, the anticipated size of the fund or the amount Binance would contribute to the fund.
He said that Binance itself has healthy reserves, adding: “Crypto doesn’t need saving. Crypto will be fine.”
Binance did not immediately respond to PYMNTS’ request for comment.
Zhao pledged to set up a crypto recovery fund in the wake of the collapse of cryptocurrency exchange FTX.
Writing on Twitter Monday (Nov. 14), Zhao said: “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.”
He also invited businesses that think they qualify — an investors who want to contribute — to get in touch.
“Crypto is not going away,” Zhao wrote. “We are still here. Let’s rebuild.”
The report comes three days after Binance, Crypto.com, OKX, Derebit and other cryptocurrency companies promised to provide evidence that they have enough reserves to match customers’ liabilities.
As PYMNTS reported at the time, crypto companies are rushing to reassure users and put as much distance as possible between themselves and FTX in the wake of that firm’s multi-billion-dollar collapse.
The fallout from the collapse of FTX has spread to other companies as well. The ripple effect from FTX’s fall could also extend to venture capital firms.
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