Cryptocurrency exchange Binance Holdings has pledged $1 billion in a recovery fund to help troubled crypto assets. CEO Changpeng Zhao, more popularly known as “CZ,” has promised to pledge even more money if this amount is not enough, as he revealed to Bloomberg Television on November 24.
Last week, CZ announced that he would contribute money to a recovery fund “to help projects who are otherwise strong, but in a liquidity crisis.” The company is even open to contributions from other industry players if they wish to.
The crypto world’s collapse, triggered by the FTX fiasco, has endangered the existence of several crypto firms. Having said that, Binance remains one of the strongest and most well-managed firms. CZ, at its helm, is currently the most powerful and sought-after person in the crypto world, as Sam Bankman-Fried lost all credibility post-FTX fallout.
Binance had even thought of rescuing FTX in the early stages but gave up the plan as detailed due diligence dug up issues at the crypto exchange that were beyond repair. Interestingly, Binance is now considering buying out bankrupt lender Voyager Digital, since FTX is out of the race due to its own failure. “Binance.US will make another bid for Voyager now, given FTX is no longer able to follow through on that commitment,” CZ told Bloomberg TV.
Meanwhile, cryptocurrencies breathed a sigh of relief following the Fed’s dovish remarks, citing a slower pace of interest rate hikes going forward. Bitcoin (BTC-USD) has gained strength in the past couple of trading sessions after touching lows of nearly $15,600 in early November. Year to date, BTC prices have cratered over 72%.