I agree 100%. I had not known his lies, i wish I had.
I was more so referring to projects that use their illiquid assets to collateralize loans. What FTX did with FTT, the stuff that’s coming out with Alameda and laundering through Bermuda is a whole different story.
— Crypto King (@Cryptoking) November 14, 2022
After looking underneath the woodwork, Changpeng Zhao couldn’t help save FTX from itself. Half a week later after FTX’s collapse, Zhao tweeted that Binance is to launch an ‘industry recovery fund’ for qualifying crypto projects to apply.
Binance’s CEO Changpeng Zhao announced the plan via Twitter on November 14, stating that the crypto exchange is welcoming projects who “are otherwise strong, but in a liquidity crisis.”
Qualifying projects can contact Binance Labs, Binance’s venture capital arm.
Zhao also welcomed investors to help contribute to the fund, after FTX’s collapse sent tremors throughout the industry.
Also welcome other industry players with cash who wants to co-invest.
Crypto is not going away. We are still here. Let's rebuild.
2/2
— CZ 🔶 Binance (@cz_binance) November 14, 2022
Marking a new high-profile meltdown, the collapse of FTX brought a huge hit to the entire crypto industry – DeFi projects, startups, exchanges, and investors have all been affected.
As of writing, crypto hedge fund Galois, investor Mechanism Capital, crypto platform Matrixport, and venture firm Paradigm are among the latest firms to declare exposure.
"Among the most impacted: FTX employees. According to the capitalization table, the company’s option pool held 20,858,124 shares, or about 3% of FTX, as of August. In January, FTX employees owned as much as $950 million worth of stock. Now it’s likely worthless"
— Nina Bambysheva (@ninabambysheva) November 11, 2022
Beyond Binance, other crypto companies have stepped up to offer help to those affected by FTX.
Amongst those include Dusk Network, who vows to give some relief to struggling Web3 projects affected by FTX. Additionally, Alexandre Dreyfus, CEO of sports fintech provider Chiliz, announced that he has allocated enough $CHZ native token platforms to compensate up to $10,000 per individual FTX user that has owned $CHZ on the now-fallen crypto exchange last Friday.
“Completely in the dark”
On November 10, Zane Tackett, now previous head of institutional sales at FTX sent out a letter to VIP FTX clients stating that his team was “completely in the dark” about the crypto exchange’s potential insolvency throughout the past week.
“Foremost I would like to make it abundantly clear that the VIP team was left completely in the dark and were in no way aware that FTX was insolvent or that customer assets were at any point not backed 1:1,” he said.
Afterwards, difficult news came to light that FTX was misusing customer funds, with commentators calling CEO Sam Bankman-Fried a fraud.
I agree 100%. I had not known his lies, i wish I had.
I was more so referring to projects that use their illiquid assets to collateralize loans. What FTX did with FTT, the stuff that’s coming out with Alameda and laundering through Bermuda is a whole different story.
— Crypto King (@Cryptoking) November 14, 2022
