- Binance CEO, Changpeng Zhao, announced the deployment of Binance’s Industry Recovery Fund, which aims to support struggling crypto traders during FTX’s calamitous bankruptcy.
- According to their report, Binance will issue $1 billion in initial commitments to the recovery fund. The main agenda is to support the crypto ecosystem from collapsing from the inside out, ensuring that Web3 is still a realization.
- Around 150 companies have signed up to contribute to Binance’s “noble act”.
Web3 is currently making waves throughout the globe. The very concept of DeFi, Crypto and NFT has caused such a frenzy among various demographics. However, its consistent improvement and advancement make it an entire proof plan. It suffers from multiple aspects, such as scammers, hackers, human ignorance and crypto volatility. Crypto volatility is a reality within the crypto ecosystem.
Crypto traders and exchange platforms are in constant worry, especially if it’s at the beginner level. Recent headlines portray its severity as FTX collapse significantly damages the crypto ecosystem. This sudden drop in position created a vacuum in the blockchain ledger. Eventually, causing a ripple throughout the crypto ecosystem, causing adverse effects. As a result, Binance, the primary cryptocurrency platform, has decided to take the initiative by cleaning up after FTX. Thus keeping the whole crypto ecosystem afloat.
Bitter Sweet Relations between Binance and FTX
As every crypto trader knows, Bitcoin was the first crypto asset, and alternative coins erupted over the years. However, only a few could achieve the amount of excitement, hype and expectations that bit FTX and Binance. There was even a time many experts believed that FTX had the potential to dethrone Bitcoin.
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Initially, Binance and FTX had good relations, which boosted their capabilities to heights no one could. Most individuals think that beating your competition in the business world is the only proper way to success, you might be surprised that cooperation works best, and Binance and FTX knew this all too well.
Binance was an initial investor in FTX in 2019, making their cooperation much more accessible. In due time everyone recognized both names at the top charts in the crypt ecosystems and Web3. However, this unique bromance was short-lived as Binance exited its position in FTX in 2021, starting a bitter rivalry between SBF and CZ.
Despite both individuals stating that the unfortunate breakup was mutual and necessary, its effects on both Binance and FTX and CEOs were real enough. An interviewee asked SBF for his take on Binance’s recent string of regulatory problems. His response was quite revealing.
He stated, “It’s been quite the barrage. I’m not involved in the conversations between them and regulators, so all I can do is speculate, but I’ll say that we try hard to be as cooperative as possible with the regulator. When you don’t do that and appear less flexible or responsive, I think that’s more likely to lead to cases where regulators might feel like they have no choice but to start bringing the hammer.”
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A subtle but evident jab at his former partner, now turned rival. Later, the spiral of various exchanges ensued, and their bitterness was later confirmed.
Binance is covering for its former rival
On 24th November, Binance CEO, Changpeng Zhao, announced the deployment of Binance’s Industry Recovery Fund, which aims to support struggling crypto traders during FTX’s calamitous bankruptcy.
According to their report, Binance will issue $1 billion in initial commitments to the recovery fund. The main agenda is to support the crypto ecosystem from collapsing from the inside out, ensuring that Web3 is still a realization. If need be, Binance will increase that amount to $2 billion shortly.
This initiative has inspired other cryptocurrency platforms to contribute to this cause. They include Jump Crypto, Polygon Ventures, and Animoca Brands. CZ shared the public wallet address showing its initial commitment and stated that Binance seeks to be “Transparent”, an apparent jab towards FTX.
CBNC reviewed this information and confirmed that Binance placed $1 billion worth of its BUSD stablecoin. It is evident that even though this initiative will aid crypto traders and Web3, it’s still a strategic move from Binance. CZ will appear as the new saviour for the crypto ecosystem, overshadowing SBF’s initial attempt at saving several crypto exchange firms such as Voyager Digital and BlockFi.
However, Binance did state that this was not an investment fund; instead, it would support companies and projects that are severely struggling due to the financial losses brought by FTX.
Around 150 companies have signed up to contribute to Binance’s “noble act”. The crypto ecosystem will now receive a cushion through the hard times brought about by FTXs failures. It is the responsibility of crypto exchange platforms profiting from the crypto ecosystem to take care of their market. This ensures that the dream and vision of Web3 are achievable even in times of crisis.
Despite its questionable motives, Binance understands this and sheds a positive light on cryptocurrency, guaranteeing an increase in crypto traders. Web3 might have its ups and downs, but its vision of a decentralized network is still strong.