Binance aims crypto recovery with $1B Fund, 7 others with $50M
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Binance, the world’s largest crypto exchange, unveiled the Industry Recovery Initiative – a billion dollar fund to help crypto companies in need. Now other companies are jumping in to participate.
The collapse of one of the largest crypto exchanges, FTX, sent shock waves throughout the crypto industry. The fall of the entire empire was considered one of the colossal destructions of wealth. Not only for the leading platform, but also for the companies associated with it, as the contagion effect took several tolls.
The crypto community would need to take significant steps to recover from this handicap. Various famous individuals don’t expect a recovery anytime soon because it’s a crushing rebuilding of confidence.
But small steps to build trust and infrastructure can be here with the latest developments.
Let’s take it step by step
The largest crypto exchange by volume is leading this front to build infrastructure after massive destruction. Binance has announced its Industry Recovery Initiative, a billion dollar fund to help crypto companies in need.
In a Nov. 24 blog post, Binance led the charge to protect consumers and rebuild the industry. It added:
“As a leading player in crypto, we understand that we have a responsibility to lead the charge in protecting consumers and rebuilding the industry. That’s why we’ve launched the Industry Recovery Initiative (IRI), a new co-investment opportunity for organizations that want to support the future of Web3.
Binance committed $1 billion to the fund in a public announcement, with an additional $1 billion “in the near future if the need arises.” Also, CEO of the exchange, Changpeng ‘CZ’ Zhao comment from the initiative on Twitter:
To date, Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group have committed a total of $50 million. Binance expects more participants to join soon.
At press time, Binance has received 150 support applications from businesses in need. The mandate would support the most promising and high-quality companies and projects that have built the best technologies that faced significant, short-term financial difficulties.
Things to consider in IRI
The initiative is not an investment fund, but “a co-investment opportunity for organizations that want to support the future of web3.
Instead, for different applicants, Binance is looking for projects with features such as
“projects characterized by 1) innovation and long-term value creation, 2) a clearly defined and viable business model, and 3) a laser focus on risk management (click here to apply”), the blog added.
In total, the discussed program will last six months from the start date.
This news comes a week after Binance made a US hand offer for the assets of defunct lending platform Voyager Digital. In fact, another step in closing the gap and restoring confidence after the collapse of the FTX center.
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