Binance Launches $2 Billion Recovery Fund

Binance founder and CEO Changpeng Zhao (CZ) is officially the main character.

Fresh off taking down rival FTX and SBF with a string of Magnus Carlsen-Esque chess moves, CZ is now holstering his gun in favor of a helping hand.

The helping hand? A $2 billion industry recovery fund.

Buy Low, Sell High

The recovery fund makes a lot of sense for Binance and the other prominent crypto companies participating.

The crypto markets have taken an absolute beating this year, with major crypto companies Celsius, FTX, BlockFi, and 3AC going belly up.

That said, it’s arguably a pretty good time for those with money and conviction to scoop up cryptoassets on the cheap, which is exactly what Binance and the recovery fund plan to do.

If the markets eventually turn bullish again (which we wholeheartedly believe will happen), the payoff will be immense.

FTX = Binance?

This is diving a bit into the conspiratorial, but humor us for a minute.

In many ways, this fund is no different than what FTX did as recently as a few months ago. At the time, we thought that FTX was doing it for (1) the good of their industry and (2) the good of their wallets.

As we now know, it turns out that they were doing it to stave off their collapse.

Is Binance up to something similar? We don’t think so, but in a year as crazy as 2022, would it really surprise you if this blew up in their face?

For years now, CoinSnacks has written with a healthy level of skepticism regarding CZ and Binance. And with the SEC investigating the company and interesting ties to Justin Sun, we continue to live by one of Bitcoin’s original sayings: Don’t trust, verify.