By Richard Hines
Changpeng Zhao, CEO of Binance, has embarked on a mission to raise the profile of crypto projects. CZ announced his intention to help fund projects that have a solid foundation but are on the verge of being liquidated, referring these projects to Binance Labs for more information and directives.
Crypto Projects Funding By CZ
With this new directive, Changpeng Zhao has publicly expressed his desire to take the crypto community to the next level. CZ announced his intention to assist in the funding of startups and crypto firms that have a strong presence in the crypto space but are on the verge of being liquidated.
He encouraged projects that believe they require this assistance to apply by contacting Binance Labs for further instructions. He also encouraged investors who support this initiative to invest, in order to keep the crypto community moving and plunging forward.
Following the FTX exchange liquidation, the crypto market was severely impacted, with a recorded $150 billion loss in market cap. Investors rushed to withdraw their funds from the FTX exchange after this crash, totaling $7 billion withdrawn in 72 hours.
This liquidation had a significant impact on the market, with Bitcoin falling to the $15,000 mark and SOL falling below the $18 mark.
Businesses were also impacted as well, from DEFI to crypto projects, leaving no crypto sector untouched.
However, in light of these events, Binance exchange adopted these initiatives of project funding to restore order to the crypto market.
FTX Crash And Market Effect
During the FTX crisis, CZ made it clear that he intended to buy the FTX exchange in order to salvage the liquidity situation; this announcement, however, restored some hope to the crypto community. Sam Bankman- Fried, the CEO of FTX, had previously reached out to some crypto figures to assist his exchange during this liquidation period.
However, shortly after making this announcement, CZ stated that he will not acquire this exchange again. This change in plans effectively ended all hopes of FTX recovery, as crypto prices plummeted to new lows.
On Friday, Sam filed bankruptcy pertaining to the rate at which investors withdrew their funds from the exchange.
The Securities and Exchange Commission SEC is currently investigating the FTX exchange and its employees in connection with the crash and liquidation of the sister exchange FTX Alameda Research. Allegations that the FTX exchange used investor funds to fund bets on the Alameda Exchange have been thrown at the exchange.