In a November 24 interview, Changpeng Zhao, the CEO of Binance, announced that the crypto emergency fund discussed after the fall of FTX should reach at least $1 billion. Moreover, it would be a fund hosted on the blockchain and having its own address, which would therefore make it visible to all. It should see the light of day before the end of the year, according to CZ.
Binance thinks big
Interviewed on Bloomberg TV regarding the establishment of the previously mentioned emergency fund, Changpeng Zhao, the CEO of Binance, said the latter is expected to hit $1 billion.
This would be a “flexible structure” pooled fund in which all ecosystem players could deposit funds whenever they want. According to CZ, the fund would be publicly visible on the blockchain thanks to a classic wallet address. He also clarified that a blog post should soon be available on the Binance site for more details.
Initially announced following the collapse of FTX (the 2nd largest cryptocurrency exchange some time ago), this emergency fund aims to financially support “ projects that are solid, but find themselves in a liquidity crisis “.
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Binance, and the others
Also in this television interview, Changpeng Zhao also confessed that he regretted having tweeted “too late”. regarding the fragile position of FTX pre-bankruptcy :
“I think as an industry we let FTX get too big before we started to question some of these things. So I’m taking the approach where we ask questions much earlier. This does not mean that we are attacking our industry peers. We just want to get more transparency and more reviews in the industry. »
A no doubt indirect reference to his recent tweet (since deleted) targeting its American rival Coinbasein which he then suspected him of holding “only” 600,000 units of Bitcoin (BTC), which suggested a risk of potential insolvency.
Brian Armstrong, the CEO of Coinbase, had responded to the Binance CEO’s supporting document tweet stating that Coinbase held 2 million units of BTCwhich moreover constitutes more than 10% of the BTC currently in circulation on the blockchain.
Regarding the emergency fund, the latter should be available before the end of 2022according to Changpeng Zhao.
👉 Read also – Changpeng Zhao (CZ) confirms that Binance.US will submit an offer to Voyager Digital
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