Binance Chief Pitches For Industry Recovery Fund, Demands for Global Crypto Standards

The collapse of the crypto exchange FTX has shaken the entire as it took less than a week for a company with $32 billion to turn into ashes. The top personalities in the crypto space have been mulling what measure the crypto industry players can collectively initiate  to prevent such events in the future.

Earlier today, Binance chief Changpeng Zhao pitched for building an industry recovery fund to help potential projects from falling apart due to liquidity crisis. In a tweet, the Binance chief wrote: “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 further invited other industry players who are willing to co-invest to this initiative. “Crypto is not going away. We are still here. Let's rebuild,” added CZ. The Binance chief said that ore details regarding this initiative will be announced soon. In the meanwhile asked projects to contact Binance Labs, who think they would qualify.

Several prominent personalities from the crypto space expressed the desire to join this initiative. Erin founder Justin Sun that his group of companies would “participate in this industry recovery fund and help good builders and developers to recover from the crisis!”

Similarly, Simon Dixon, CEO of BankToTheFuture said that “I would like to join the fund @cz_binance. Let’s make sure we don’t centralize the industry too though. Let’s make this an industry effort”.

However, it is still not clear how the industry recovery fund would function. Some of the commentators have also expressed concerns on how to decide the legitimacy of the project.

Furthermore, while speaking at a conference in Bali, Indonesia earlier today, CZ said that Binance is planning to spearhead efforts with other industry players in setting up global standards for digital assets.

Zhao said: “As an industry we need to increase transparency. We need to work very closely with regulators all around the world to make this industry more robust. There is a strong role for regulators to play but we can’t blame this on any single party.”

Zhao also compared the recent collapse of the FTX exchange to the 2008 financial crisis. He also added: “I think that’s probably an accurate analogy. With this type of event happening, it’s devastating for the industry. A lot of consumer confidence is shaken, and I think basically it sets us back a few years. With FTX going down, we will see cascading effects. Especially for those close to the FTX ecosystem, they will be negatively affected.”