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As I understand it CZ was referring to an entirely private fund to provide liquidity to projects he felt are worth saving. This is not another gov. supported ba
by aww_dang 4y ago
As I understand it CZ was referring to an entirely private fund to provide liquidity to projects he felt are worth saving. This is not another gov. supported bailout.
>“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify,"
https://twitter.com/cz_binance/status/1592044496174612482 https://twitter.com/cz_binance/status/1592044496174612482
- sdiacom 4y agoAh, that would be interesting to see. I wonder, where would the money coming from for this fund? Would it be real money, or magic beans money? What does it mean for a financial product to be "otherwise strong" when it is "in a liquidity crisis"?
- aww_dang 4y agoIndeed some 40% of Binance's reserves are in their own tokens. https://markets.businessinsider.com/news/currencies/crypto-news-binance-reserves-are-mostly-busd-binancecoin-cz-sbf-2022-11 https://markets.businessinsider.com/news/currencies/crypto-n... >What does it mean for a financial product to be "otherwise strong" when it is "in a liquidity crisis"? As to the rest of it, it is similar to any other speculative investment. If they like the future prospects, they'll assist. A liquidity crisis means there are not enough liquid assets to proceed with business. You can read this as Binance seeking to eat the lunch of those which are unable to withstand depositors running for the exit. If there's no prospect of future luncheons, there's no bailout. The bit about stemming the hysteria and "we're all in this together" is the magnanimous marketing language you'd expect.