In the wake of the collapse of the crypto exchange FTX, Binance has announced the formation of what it calls an industry recovery fund aimed at salvaging crypto projects facing liquidity issues.

Binance CEO Changpeng Zhao (CZ) tweeted saying, “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.” 

He added that more details regarding the initiative would be announced soon while urging projects that think they qualify to contact Binance Labs.

The Binance CEO also further stated that other industry players with cash are welcome to co-invest in the fund.

“Crypto is not going away. We are still here. Let’s rebuild.” proclaimed CZ.

Several prominent crypto personalities, including Tron founder Justin Sun and BankToTheFuture CEO Simon Dixon, have already expressed their willingness to join the initiative.

While the proposed industry recovery fund’s purpose is not yet known, several critics have expressed worry about how to distinguish between someone who is genuinely experiencing liquidity issues and someone who is committing fraud.

“You can’t backstop billions in offside liabilities without first fixing Ponzi business models. This industry fund sounds like fluff or a bad decision,” said Sean Penso, Managing Partner at Cortelyou Capital.

Sam Bankman-Fried’s FTX filed for Chapter 11 bankruptcy on Friday after a week of dramatic events that saw the exchange face a liquidity crunch and ultimately freeze withdrawals after customers rushed to get their funds off the trading platform.

Given FTX’s high profile, which penned deals with sports stars like Tom Brady and a massive $135 million deal to rename the Miami Heat stadium, there are fears that its collapse will have a cascading effect on the entire industry, with more big firms to follow the same path.