Binance aims crypto recovery with $1B Fund, 7 others with $50M

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Binance, the world’s largest cryp­to exchange, revealed an Indus­try Recov­ery Initiative—a $1 bil­lion fund to help cryp­to com­pa­nies in need. Now, oth­er com­pa­nies are jump­ing in to con­tribute.

The col­lapse of one of the largest cryp­to exchanges, FTX, sent shock­waves across the entire cryp­to indus­try. The fall of the whole empire was deemed one of the enor­mous destruc­tions of wealth. Not just for the lead­ing plat­form but even for relat­ed com­pa­nies, as the con­ta­gion effect took a series toll. 

The cryp­to com­mu­ni­ty would need to take sig­nif­i­cant steps to recov­er from this draw­back. Dif­fer­ent famed indi­vid­u­als don’t expect a recov­ery any­time soon because it will be a grind-out of rebuild­ing trust.

But small steps to build trust and infra­struc­ture could be in play here with this lat­est development. 

Taking it step by step 

The largest cryp­to exchange by vol­ume is lead­ing this front to build the infra­struc­ture fol­low­ing the mas­sive destruc­tion. Binance has announced its Indus­try Recov­ery Ini­tia­tive, a $1 bil­lion fund to help cryp­to com­pa­nies in need.

In a Nov. 24 blog, 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 when it comes to pro­tect­ing con­sumers and rebuild­ing the indus­try. That is why we have estab­lished the Indus­try Recov­ery Ini­tia­tive (IRI), a new co-invest­ment oppor­tu­ni­ty for orga­ni­za­tions eager to sup­port the future of Web3.” 

Binance com­mit­ted $1 bil­lion to the fund at a pub­lic address, with an addi­tion­al $1 bil­lion “in the near future if the need aris­es.” The exchange’s CEO, Chang­peng ‘CZ’ Zhao, also com­ment­ed on the ini­tia­tive on Twitter: 

So far, Jump Cryp­to, Poly­gon Ven­tures, Aptos Labs, Ani­mo­ca Brands, GSR, Kro­nos, and Brook­er Group have com­mit­ted $50M in total. Binance expects more par­tic­i­pants to join soon. 

At press time, Binance has received 150 sup­port appli­ca­tions from com­pa­nies in need. The man­date would sup­port the most promis­ing and high­est qual­i­ty com­pa­nies and projects built by the best tech­nol­o­gists who faced sig­nif­i­cant, short-term finan­cial difficulties. 

Things to consider about IRI

The ini­tia­tive isn’t an invest­ment fund but a “co-invest­ment oppor­tu­ni­ty for orga­ni­za­tions eager to sup­port the future of web3.

Where­as for dif­fer­ent appli­cants, Binance would look for projects with fea­tures such as 

“projects char­ac­ter­ized by 1) inno­va­tion and long-term val­ue cre­ation, 2) a clear­ly delin­eat­ed and viable busi­ness mod­el, and 3) a laser focus on risk man­age­ment (click here to apply),” the blog added.

Over­all, the dis­cussed pro­gram will last six months from the com­mence­ment date. 

This news comes a week after Binance’s U.S. arm bid for the assets of defunct lend­ing plat­form Voy­ager Dig­i­tal. Indeed anoth­er step in clos­ing the gap and regain­ing trust after the col­lapse of the FTX exchange. 

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.



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