ReXx of the Terra Rebels discloses that Recovery Fund from Binance is not meant for Terra Classic.
ReXx, a prominent Terra Rebels admin, recently revealed that neither the Terra Rebels group nor the Terra Classic (LUNC) project is eligible for the recently-introduced Industry Recovery Fund initiative from Binance.
Amidst the worrisome yet growing contagion triggered by the FTX crash, Binance Chief Changpeng “CZ” Zhao recently introduced a support program to assist reliable projects which appear to be suffering from a liquidity crunch due to direct or indirect exposure to FTX or Alameda.
CZ instructed interested applicants to contact Binance Labs to determine if they qualify for the fund through an assessment exercise. Notwithstanding, this hasn’t stopped several individuals from indicating interest in the comment section. Some LUNC proponents have also brought CZ’s attention to the once-neglected project.
In the wake of these calls, ReXx had to inform the community that the demands were unnecessary, as the Terra ecosystem does not qualify for the funds because LUNC has nothing to do with FTX’s collapse, not Terra Classic by any means is affected by FTX fall. Nevertheless, he expressed gratitude to the community for their commitment to seizing any opportunity that could potentially contribute to the project’s revival.
“Terra Rebels team is not eligible for these funds. Please do not spam cz in these regards. We appreciate the support from the community regardless,” ReXx disclosed in a tweet Monday.
ReXx’s assertion was prompted by the fact that the recently-introduced Binance Industry Recovery Fund initiative is only tailored for projects which, despite showing a track record of strength and transparency, are suffering from the negative impacts of the FTX debacle. The fund’s purpose is to impede the growth of the contagion in the crypto scene, CZ said.
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. 1/2
— CZ 🔶 Binance (@cz_binance) November 14, 2022
Amid the panic dumped into the space, speculations of exposure to FTX have risen. Notably, crypto bank Silvergate noted that it had no exposure to FTX in the form of investments or loans. Additionally, exchange Crypto.com recently dismissed liquidity concerns, disclosing its FTX exposure is “minimal.” CoinShares, on the other hand, confirmed that it had exposures to FTX to the tune of $30M.
The Binance Chief mentioned that any industry players who wish to contribute to the already-established fund to extend its reach are free to indicate their interest in co-investing in the initiative.
Following CZ’s open invitation, Tron’s Justin Sun revealed that the entities he is affiliated with – Huobi Global, Tron, and Poloniex – are willing to contribute to the fund as a way to “help good builders and developers to recover from the crisis.”
Recall that Sun previously indicated an interest in assisting FTX with funds following reports of the exchange’s insolvency issues and its liquidity crunch predicament. Following reports of FTX’s bankruptcy filing, notable crypto influencer BitBoy asserted that Sam Bankman-Fried had extorted billions from Justin Sun and subsequently filed for bankruptcy, as The Crypto Basic recently reported.
LUNC community remains dedicated to ensuring the asset’s revival as burns and staking remain on track, with total burns exceeding 27B with up to 850B LUNC staked, as previously The Crypto Basic reported.