Binance announced plans to launch a special fund to help crypto companies facing a liquidity crunch two weeks ago. Now the fund has begun to receive funds.
The Binance exchange itself transferred $1 billion in BUSD stablecoins to public address. Large representatives of the cryptocurrency industry also provided their funds – Jump Crypto, Polygon Ventures, GSR, Aptos Labs, Animoca Brands and Kronos. The total amount of investments from these companies amounted to $50 million, but this is only the initial investment. Binance has received over 150 applications from other companies.
“As a leading player in the cryptocurrency industry, we understand that we are the ones responsible for both consumer protection and industry recovery,” Binance said in a statement.
The CEO of the exchange, Changpeng Zhao, stressed that this is not an investment fund. It will have a flexible structure, and the duration of the initiative should be about six months, although it may be extended. At the same time, Binance is ready to provide another $1 billion if necessary.
Recall that this fund, according to Zhao, should mitigate the effect of the collapse of the FTX cryptocurrency exchange on the industry. At the same time, he expects that several companies will still go bankrupt.
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