Binance to create industry recovery fund as CZ holds AMA to calm crypto markets

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Cryptocurrencies Binance to create industry recovery fund as CZ holds AMA to calm crypto markets

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Among the highlights of the session was his announcement that “four or five” other firms have offered to contribute to the fund, and that he will release the names of the other companies once the nature and scale of their commitment is confirmed. Zhao said Binance does operate a margin program, but margin traders cannot withdraw the money away and the risk management is handled by the system if they are out of margin.

Zhao also said that the company does not try to make money from trading itself. “We're not trying to be like a hedge fund shop,” he said. “We make money through trading fees.” Binance also doesn’t try to be a market maker. “We rely very heavily on third-party market makers that provides liquidity,” he said.

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