The major cryptocurrency was mostly higher after the world’s largest digital-asset exchange plans to set up an industry recovery fund, said Changpeng ‘CZ’ Zhao, chief executive officer of Binance Holdings Ltd.
Zhao said Monday the goal was to “mitigate further negative effects” of a rival’s bankruptcy exchange ftxThe addition of funds will aid otherwise strong projects that are facing a liquidity crunch.
Bitcoin sprang up after the tweet but later added back some of those gains. At 10:23 am in New York, the coin is up 1.2% to $16,567. Earlier, it had hit year’s low after an intraday drop of 3.4%. It had lost 23% last week. Solana, a token tied to Sam Banksman-Fried’s broken FTX empire, closed a three-day retrace to add up to 11%.
Even if the market rallied on Zhao’s tweet, such a fund may not be the best for the industry, said Mati Greenspan, founder and CEO of Quantum Economics. binance There is already a lot of control in a decentralized market, he said.
“This kind of concentration of power makes me uncomfortable,” Greenspan said.
Meanwhile, Elon Musk’s tweet that bitcoin “will make it” also fueled the crypto markets, Greenspan said. Dogecoin, a token that Tesla CEO has touted in the past, rose by 7.9%.
Zhao did not mention how large the fund could be. He invited other industry players to “co-invest” and said more details would follow. The FTX wipeout continues to cast a long shadow after shaving nearly $200 billion off the crypto market cap over the past week.
This story has been published without modification from a wire agency feed.
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