Vitalik Buterin and Binance Will Work on New Proof-of-Reserves Method for Exchanges

Chinese crypto blogger and journalist Colin Wu has shared that in the recent AMA (“ask me anything” session), head of Binance Changpeng Zhao (CZ) stated that Binance would be working together with Ethereum co-founder and frontman Vitalik Buterin.

Binance is also launching a recovery fund for strong crypto firms that are in a liquidity crisis.

Vitalik Buterin to join forces with Binance

Together, they plan to create a new method that would help crypto exchanges to demonstrate proof of reserves, thus proving they have enough liquidity.

It was CZ who stepped forward with this initiative and urged exchanges to share proof of reserves after the scandal with FTX, which was lending its customers’ funds to its affiliated trading firm, Alameda Research.

Ads

Details of the new project have not been disclosed yet. However, Binance exchange will be used as a pilot platform here.

In the AMA, Binance founder CZ said that binance will cooperate with ETH co-founder Vitalik to launch a new platform reserve proof method, and Binance will serve as a pilot. According to @BlockBeatsChina

— Wu Blockchain (@WuBlockchain) November 14, 2022

Binance launches recovery fund for crypto projects

Earlier today, CZ took to Twitter to share that Binance is creating a recovery fund for the crypto space. It will lend a helping hand to crypto projects “who are otherwise strong” but have big liquidity problems or are in a liquidity crisis.

He offered those projects that believe they qualify for this to contact Binance Labs. CZ also invited crypto players with money to spare to join in and co-invest in the industry. The initiative has already been supported by Justin Sun, founder of Tron and owner of Huobi exchange.

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

When asked if FTX was a strong project with a liquidity crisis, Changpeng Zhao explained that “liars or fraud will never qualify as strong projects.”

When the FTX crisis had only just begun, CZ offered to buy it, and Binance signed a nonbinding letter of intention to do that, retaining the right to withdraw at any moment. They did exactly that later on, quickly, stating that the problems of FTX are so big that this is beyond their help.