In the wake of the FTX collapse, Binance, the world’s largest cryptocurrency exchange, has announced a fund to restore the cryptocurrency industry. “As a leading cryptocurrency player, we understand we have a responsibility to lead the charge when it comes to protecting consumers and rebuilding the industry. That is why we created the Industry Restore Initiative (IRI), a new co-investment opportunity for organizations eager to support the future of Web3,” he wrote. Binance in its blog post. The exchange says it will commit $1 billion to the recovery fund, in what will be an initial commitment, and may increase the amount to $2 billion in the future if needed.
Binance has also received $50 million in commitments from Jump Crypto, Animoca Brands, and Polygon Ventures.
The Industry Recovery Initiative (IRI) public wallet address was shared by Binance CEO Changpeng Zhao with Binance’s initial commitment. “We do it transparently,” he wrote. An initial commitment of $1 billion was made in Binance’s native currency, BUSD stablecoin.
This fund comes at a very critical time, to keep the cryptocurrency industry afloat after FTX filed for bankruptcy earlier this month, making the exchange the latest crypto company to go bankrupt. Binance initially wanted to acquire FTX but canceled the decision. Since the collapse of FTX, investor confidence in cryptocurrencies has waned which has greatly affected the industry.
According to Binance, the Industry Recovery Initiative (IRI) is “not an investment fund.” Its purpose is to support companies and projects that, “through no fault of their own, are experiencing significant and short-term financial difficulties.”
Binance expects the program to last for about six months and added: “We have already received around 150 applications from companies seeking support under the IRI. Each participating investor within the IRI will have the opportunity to review potential deals and decide if they would like to participate. We expect that to be done.” Some deals will be invested unilaterally and others will be co-investments with all or some of the IRI participants.” It also accepts applications from investors to contribute to the financing. Binance will accept contributions in tokens, cash, and debt. “We expect that individual situations will require customized solutions,” Binance explained.
Source: TechBookyBusiness
