Binance Creates $1 Billion Fund to Support Crypto Industry After FTX Bankruptcy

On Thursday, November 24, the Binance cryptocurrency exchange announced on the allocation of $1 billion to a fund to support cryptocurrency companies in difficult conditions after the bankruptcy of another exchange, FTX. Binance said that if necessary, the amount directed to the fund can be increased to $2 billion. Other crypto companies have also invested $50 million in the fund, including Jump Crypto, Polygon Ventures and Animoca Brands.

The company notes that this is not an investment fund, it is intended to support companies and projects that "through no fault of their own face significant short-term financial difficulties." The program is designed for six months. About 150 companies have already applied for help, according to Binance.

Tuesday in the USA took place first hearing on FTX, which recently filed for bankruptcy while owing $3.1 billion to its largest creditors. This led to a significant drop in the rates of cryptocurrencies, including bitcoin, and to instability in the industry as a whole.

Read about the situation on the market in the publication "Kommersant" “It’s somehow non-bitcoin in the cryptocurrency market”.

Yana Rozhdestvenskaya

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