Binance intends to allocate $1 billion to a proposed industry recovery fund, while its CEO revealed that its U.S. operation intends to make a new bid for the assets of bankrupt cryptocurrency lending firm Voyager.
Speaking Binance CEO Changpeng Zhao touched on some of the topics of what has been a tumultuous month for the cryptocurrency ecosystem in an interview with Bloomberg TV on Nov. 24.
Chief among these is Binance’s proposed Industry Recovery Fund, which aims to provide financial support to promising projects struggling financially. The exchange’s founders came up with the idea after FTX’s now-infamous crash.
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Details of the fund, Zhao said, will be announced on the exchange’s blog in the coming days, with a rather “loose” structure, funded by other members of the cryptocurrency ecosystem:
“We’ve been going back and forth about how to structure it, are we going to make it a loose fund or an actual fund? I think we’re taking a loose approach and the different industry players will do what they want make a contribution.”
According to the Binance CEO, the fund will be publicly visible, and donors will send funds to a central, transparent blockchain address. Zhao also noted that the fund is expected to go live by the end of 2022, while touting what he sees as a six-month roadmap for the industry’s recovery.
The report also states that Binance.US is interested in placing a new bid on assets belonging to the now-bankrupt Voyager Digital. The lender is one of the few to go bankrupt following Terra’s collapse in May 2022.
The Binance CEO also said that the exchange would consider revisiting some of the assets or businesses that belong to FTX. Binance considered a deal to acquire Sam Bankman-Fried’s exchange before it collapsed in November 2022.
Zhao said that FTX has invested in several projects, some of which may be “salvageable” and will attract interest when they become available.