In the aftermath of the collapse of FTX, the world’s once second-largest cryptocurrency exchange, Binance has made a public announcement about the establishment of what it calls an Industry Recovery Initiative. The major purpose of the fund is to provide assistance to bitcoin projects who are struggling with liquidity challenges.
“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 has stated in a public address that it will contribute one billion dollars to the fund, and if there is a demand for it, another billion dollars will be contributed in the near future. Participating companies, which include Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group, have collectively agreed to contribute an initial sum of fifty million dollars to the fund. According to Binance, there have been a total of 150 other companies that have expressed a desire to engage.
The firm claims that the initiative is not a fund for investments but rather a co-investment opportunity for companies who are interested in supporting the development of web3. According to Changpeng Zhao, CEO of Binance, the company is developing an industry recovery fund to assist projects that are otherwise solid but are experiencing a liquidity issue. This is being done in an effort to avoid the further cascading bad impacts of FTX.
He added that if conventional financial institutions are unable to deliver money to a public address, the fund can explore the possibility of traditional financial institutions finding an alternate commitment method.
