Binance Aims at Crypto Recovery with B Fund, 7 Others with M

Binance Aims at Crypto Recovery with $1B Fund, 7 Others with $50M

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

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 vast destructions of wealth. Not only for the leading platform, but even for related companies, as the contagion effect took a toll.

The crypto community needs to take significant steps to recover from this disadvantage. Various famous individuals do not expect a recovery anytime soon, because it will be a struggle to rebuild trust.

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

Take it step by step

The largest crypto exchange by volume is leading this front to build the infrastructure after the massive destruction. Binance has announced its Industry Recovery Initiative, a $1 billion fund to help crypto businesses 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 in protecting consumers and rebuilding the industry. That’s why we’ve 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 in a public address, with another $1 billion “in the near future if the need arises.” The exchange’s CEO, Changpeng ‘CZ’ Zhao, as well commented on the initiative on Twitter:

So far, Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group have committed $50 million 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 companies and the highest quality projects built by the best technologists that faced significant, short-term financial difficulties.

Things to consider about IRI

The initiative is not an investment fund, but a “co-investment opportunity for organizations keen to support the future of web3.

While for different applicants, Binance would look for projects with features like

“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.

Overall, the mentioned program will last for six months from the start date.

This news comes a week after Binance’s US arms bid for the assets of defunct lending platform Voyager Digital. Indeed, another step to close the gap and regain confidence after the collapse of the FTX exchange.

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