Bitcoin price has increased massively by $1k, while Binance announced the industry recovery fund after the worst week since May.
The increase came in the early hours of Monday and shut up to about $17K. Now Binance is set to establish an industry recovery fund in the wake of the FTX crisis.
Bitcoin price has increased massively: Binance CEO Reaction
The CEO, of Binance, Changpeng Zhao, recently disclosed the price jump across the cryptocurrency market in dramatic tweets.
He added that his company would establish an industry recovery committee to lessen the negative consequences of the impact of FTX.
“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.”
He added that more details will come soon. “In the meantime, please contact Binance Labs if you think you qualify”.
Backstory
Binance had earlier announced its intention to purchase the crypto platform before stating it could still pull out of the deal depending on due diligence.
This was later confirmed by the company which said the issues surrounding the crypto exchange acquisition were beyond their control.
Binance in its defense said, “As a result of corporate due diligence, and reports regarding mishandled customer funds and alleged US agency investigations, we will not be purchasing https://ftx.com/.”
They added that every time a major player in the industry fails, retail consumers will suffer. “We have seen over the last several years that the crypto ecosystem is becoming more resilient. We also believe in time that outliers that misuse user funds will be weeded out by the free market.”
It is reported that there could be a global contagion from the collapse of FTX.COM. This could spread beyond cryptocurrency to the mainstream debt market.
Investors are already worried and concerned about which global banks might be exposed to FTX, directly or indirectly. Stay alert.
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