The crypto world is experiencing a major shakeup today, and the recent FTX exchange crash is to blame. However, the founder and CEO of the largest crypto exchange Binance has decided that he will not let this negative direction that the cryptocurrency industry has started to take go to waste.
Changpeng Zhao has decided to set up a fund to rebuild the crypto industry and has stated that Binance will donate $1 billion in initial commitments to it. In the future, it is possible that this amount will reach up to USD 2 billion. He also used the social network Twitter to make the announcement.
The problem is that the collapse of the FTX exchange is a warning sign for everyone in the cryptocurrency world, and many experts warn about the lack of regulations and overall investment in cryptocurrencies. In the wake of this incident, investors fear a cryptocurrency contagion that will hit all corners of the industry. However, it is Zhao who sees a future in cryptocurrencies, and even after the FTX's closure, he discusses the prospects of cryptocurrencies. [1]
He also points out that their new fund will have a transparent structure and will be published for everyone to see on the blockchain, with other industry players able to contribute to it as well. Binance plans to use the fund to establish a global cryptocurrency association that would set strong standards for the cryptocurrency industry. It will also help projects that are short on cash but have a strong business model. Zhao points out that the entire cryptocurrency industry has a collective role to play in protecting consumers.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.
