The billionaire and CEO of Binance, Changpeng Zhao also known as “CZ” outlined the rescue plan for the cryptocurrency industry, which is in dire straits after the collapse of FTX. CZ has pledged to accumulate at least $1 billion for the purchase of distressed assets and has said it will make another offer for the crypto lender Voyager Digital which in turn declared bankruptcy.
In an interview Thursday with Bloomberg TelevisionZhao gave the most detailed overview ever on the various offers that Binance is looking into in the wake of rival FTX’s bankruptcy.
Changpeng Zhao’s rescue plan
Zhao’s plan is to raise partners for a fund aimed at supporting promising cash-strapped crypto projects.
“We are going with a free approach where the different operators in the sector will contribute as they wish”Zhao said, adding that he will publish a blog post soon providing more details about the fund.
The number one of Binance, which has recently been severely attacked by the economist Nouriel Roubinisaid he is trying to limit the damage to the cryptocurrency sector after the FTX implosion, which he personally hastened with a Nov. 6 tweet about plans to sell $530 million of FTX’s digital token.
One question Zhao left open is where Binance will be headquartered, saying only that Dubai and Paris are the “global hubs” for now.
The cryptocurrency crash in 2022 caused Zhao to lose about $80 billion, but with his $15 billion he still surpasses the wealth of anyone else in the cryptocurrency business.
The Offer to Travel
Additionally, Zhao told Bloomberg, Binance US is planning to revive the bid for Voyager assets. Binance will compete with the cryptocurrency exchange CrossTower and other companies to purchase Voyager.
The crypto exchange led by Changpeng Zhao is also in talks with Genesis Global, the US-based cryptocurrency broker who is seeking emergency funding to stay afloat. The brokerage firm has on the balance sheet $2.8 billion of outstanding loans, approximately 30% of which are loans to related parties, including its parent company, Barry Silbert’s Digital Currency Group.
Zhao said a possible Genesis collapse could only impact a few large institutional players and tried to downplay the potential damage to the industry as a whole.
“There will be pain every time a player falls.”Zhao added.