The CEO of Binance, Changpeng Zhao (CZ) has recently posted one of the most important tweets for the entire crypto industry in 2022.
CZ talked about the major collapse that the crypto industry has faced due to the FTX crash. However, the main focus of his tweet was not FTX but the recovery of the crypto industry following the crash.
A Crypto Industry Recovery Fund
The main reason behind CZ’s recent tweet was to talk about the new program Binance is aiming to launch. He clarified that the new program is a recovery fund for the betterment of the crypto industry.
On Monday morning, CZ tweeted that they want to help the entire cryptocurrency industry recover from the liquidity crisis. For this purpose, they are going to launch a recovery fund.
As per CZ, the FTX crash is constantly cascading negative effects all across the crypto industry. The crash has formed a chain reaction that is not coming to an end and is eating away the entire industry.
The firm has announced that its focus is mainly on major projects within the cryptocurrency industry. Although these projects are larger than the rest they are facing liquidity crises.
Their focus is to help these firms with liquidity and bring them out of the crisis. The ultimate outcome of this effort would bring the entire crypto industry out of the crisis.
CZ Welcome other Industry Players
He stated that although they have taken the initiative they would need as much support as possible to run the fund. He invited other major crypto market players to participate and co-invest in the fund.
The main purpose of his tweet was to rebuild confidence among investors. Due to the recent crash of the FTX exchange, the confidence level of the entire crypto industry has faltered.
Therefore, CZ’s statement aims to rebuild the lost confidence and bring the masses back to the crypto-verse. He made it clear that the cryptocurrency industry is going nowhere.
He announced that their exchange and their teams are still here and they will do whatever they can to rebuild the industry.
What did CZ Mean?
In the year 2022, the cryptocurrency industry faced two major crashes. The first one took place in May when the entire Terra network went down and it is still trying to recover.
Then in November, the FTX exchange went down and it is still plunging to the bottom.
In both cases, the major problem was liquidity, which led the firms to either file bankruptcy or falls to the very bottom.
Therefore, CZ’s focus is to help provide as much liquidity as possible to major projects so what happened in 2022 does not repeat.