Previously the FTX cryptocurrency exchange has expressed a desire to extend assistance to troubled crypto lenders such as BlockFi and Voyager in the hopes of it and reducing risk to the market. A string of actions from the FTX crypto exchange, many speculated that Binance is likely to announce some rescue packages as well. Most recently, Binance finally gave certainty about the rumors by explaining their stance.
Binance stated that they were not interested in supporting a ‘bad’ and failed crypto project. This includes projects that are “poorly designed”, “not well managed”, or “poorly managed”. In his latest post, Binance said that salvage to such a project does not make sense and it should not be covered.
Binance added, there is no need to keep underperforming companies. The focus should be on better projects. Cryptocurrency lending firms have faced huge losses thus forcing them to liquidate their existing assets amid the recent market crash.
Even so Binance is seen as open to bailout loan projects that have some criteria i.e. the company has a small problem that can be fixed, has some good qualities. Among them are product market suitability, generating revenue in normal market conditions, good business model, good team, and many more.
This can be saved and in turn ensure changes are made to solve the problem that brought them to this situation in the first place.
Shortly after FTX announced a $ 250 million liquidity injection to bail out BlockFi, the crypto -friendly SEC Commissioner voiced an opinion critical of the move. He said that the recent market crash was part of a process that ultimately filters strong companies from weak ones.
