Binance Bailouts: the exchange accumulates two billion dollars to save promising crypto projects
Speaking of Binance’s bailout proposals, last week Binance CEO Chang Peng Xiao announced that the exchange had doubled the size of the Recovery Fund meaning two billion dollars is ready to be deployed.
What’s interesting is that Binance isn’t the only company that’s contributed to the fund, various crypto VCS and companies including Jump Crypto, Polygon Ventures and Aptos Labs have collectively contributed 50 million dollars to Binance’s so-called Industry Recovery Fund.
Now this is interesting because Jump Crypto was one of the biggest investors in Solana’s ecosystem, this suggests that some promising Solana projects could be bailed out as part of the fund.
That said Jump Crypto has also been a strong supporter of Solana competitors like Aptos which were also affected.
On that note it’s interesting that Aptos Labs has enough money to contribute to a crypto Recovery Fund when one of the project’s largest investors was FTX, this suggests that Aptos has a lot more capital than perhaps meets the eye and this could make it a serious competitor in the next bull market.
As for Polygon Ventures meanwhile I suspect that it will push for promising crypto projects to build on Ethereum’s most popular scaling solution, I say this because Polygon has a history of successfully reaching out to crypto projects and developers in the past.
Notably following the collapse of Terra it’s safe to say that whichever crypto projects get bailed out by Binance and Co are likely to be high quality.
Not financial advice but I would strongly suggest paying attention to these projects once capital has been deployed depending on the circumstances of course.