TON Steward Declares a $126 Million Rescue Fund to Draw in More Projects

The TON Blockchain platform, first created by the dominant social media platform Telegram, is now embarking on a new adventure in the cryptocurrency world.

The stewards of the TON network announced a new rescue fund with an initial commitment of $126 million on Wednesday, November 30.

According to the TON or The Open Network, the fund will assist projects that are having trouble with liquidity due to the recent collapse of the cryptocurrency exchange FTX.

This rescue fund was established to draw more projects to the ecosystem. The TON Foundation is prepared to contribute to effectively lessen the ripple effects caused by the abrupt decline of FTX.

The Foundation also revealed that DWF Labs, Darley Technologies, Hexa Capital, and TONcoin Fund Ecosystem Partners support the rescue fund. Nan Wang, an investment associate with the TON Foundation, discussed the development:

"We want to attract builders organically who are convinced by TON’s fundamentals. We are not necessarily buying out distressed assets … However, we are willing to support top founders and projects slightly impacted by recent events."

Rescue Efforts in Cryptocurrency

The recent demise of industry heavyweights like the cryptocurrency exchange FTX has shocked the entire crypto community. In less than a week, a $32 billion company with more than 1.2 million registered users filed for bankruptcy.

The collapse of FTX had a significant effect because it spread to other crypto firms as well. BlockFi, a cryptocurrency lender, had to file for bankruptcy earlier this week due to substantial deposits with FTX.

Genesis Global, a second crypto lender, is dealing with a severe liquidity shortage due to significant withdrawals.

As a result, some of the top players in the sector have stepped forward to launch a crypto rescue fund. Changpeng Zhao, the CEO of Binance, was one of the first to advocate for the crypto rescue fund.

Several other players have joined the rescue effort in addition to the crypto giant, which has already pledged $1 billion. According to Binance, the rescue fund's objective is to support fundamentally sound cryptocurrency projects pressured by others' fraudulent activities.

However, the rescue fund established by the TON Foundation will be distinct from the rescue fund established by Binance, which aims to acquire troubled assets.