Binance Chief doubles crypto recovery fund target to $2 billion

Since the collapse of the cryptocurrency exchange FTX, Binance CEO Changpeng Zhao has been actively working to create a recovery fund to help struggling but fundamentally sound companies. In addition, Binance has doubled its fundraising plan from $1 billion to $2 billion. 

 In an interview on Thursday, November 2
, Zhao said that the crypto recovery fund has co-investors who support crypto projects that have a lack of liquidity. "We have a loose approach where different industry players participate as they see fit," he said. 

 Some popular names like Polygon Ventures, Jump Crypto, Animoca Brands, Aptos Labs, Kronos, GSR and Brooker Group have already pledged a collective 50 million dollars. The head of Binance said that it is working to limit the damage caused by the collapse of FTX to the crypto sector. 

 Binance has not yet confirmed how much it is willing to put up. But according to sources, Binance's future contribution will be much larger than the commitments made by other companies. King River Digital Assets Fund portfolio manager David Adams told Bloomberg: 

 "The market will be watching the fund's public wallet closely to see if it attracts a significant amount of non-Binance capital, because it shows how extensive industrial support is for stabilization." 

 Zhao's credibility at stake with crypto recovery fund While the head of Binance is taking the opportunity to boost his credibility in the crypto industry, the fact that his tweet triggered the turn of events at FTX has raised some questions. Some lawmakers in the UK Parliament also asked Binance to explain the circumstances surrounding Zhao's tweets on November 6. 

 Legislators want to know if the company understood the impact of these tweets. Hayden Hughes, CEO of social commerce platform Alpha Impact, said: 

 "There is too much uncertainty in the market for the stimulus fund itself to be the catalyst that turns everything upside down. We don't know the extent of the contagion. But I think we is at or near the bottom and I don't expect the market to go much lower from here.

 On the other hand, regulatory tensions with Binance continue because the exchange holds licenses in multiple jurisdictions without an official basis. Wherever. .

🌐 source

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