In a bid to rescue FTX customers who may be left out in the dark, Binance CEO has set out a fund to help promising projects undergoing a liquidity crisis.
Following the collapse of the FTX and FTT crypto ecosystem, Binance CEO Changpeng Zhao (CZ) has proposed an industry association to help work with regulators worldwide. While speaking to over 40k listeners on Twitter Space, CZ noted that several global regulators had requested similar action from top crypto players.
Crypto Association Proposed by CZ
Nonetheless, CZ said that Binance will not necessarily run the association but will leave it to a third party with similar experience in other industries.
“The association will try to maintain communication with regulators and also maintain best practices in the industry, including proof of reserves and transparency,” CZ said.
While blockchain technology has maintained its initial prospects, confidence in people running related companies has significantly declined in the past year. Moreover, global regulators have not yet closed the Terra Luna, Celsius, 3AC, and now FTX cases, which have robbed investors of billions of dollars.
Binance cryptocurrency exchange has maintained high profile standards during both bull and bear markets. As such, it has amassed the majority of global cryptocurrency trading volume.
Nevertheless, some market analysts have blamed the company for monopoly practices as competitors sink into a debt crisis. Moreover, FTX’s turmoil was exaggerated after Binance indicated its intent to dump its FTX bag.
“As much as people blame me for whistleblowing or poking the bubble or whatever […] I apologise for any turmoil that I caused, ” CZ said. “But if there is a problem, the earlier we reveal it, the better.”
In a bid to rescue FTX customers who may be left out in the dark, Binance CEO has set out a fund to help promising projects undergoing a liquidity crisis.
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. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2
— CZ 🔶 BNB (@cz_binance) November 14, 2022
Pushing Crypto Adoption Got Harder
The collapse of FTX and FTT tokens during a tight bear market has significantly crushed investors’ hope for the industry. As such, market strategists argue that less money will flow into the blockchain market until proper regulations are implemented. According to Elon Musk, Bitcoin will survive, but the winter will be extended. MicroStrategy founder Michael Saylor indicated that all altcoins should be registered as security tokens.
However, one thing is clear now, global lawmakers will use this period to bring in more crypto regulations. Congressman Brad Sherman, Chairman of the Subcommittee on Investor Protection and Capital Markets, has called on the SEC to act fast on regulating the crypto market.
“I believe it is important now more than ever that the SEC take decisive action to put an end to the regulatory grey area in which the crypto industry has operated,” Sherman said.
The reminding cryptocurrency exchanges will face more headwinds in convincing global regulators to issue operating licenses.
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