Binance Launches $1B Industry Recovery Initiative With 7 Contributors

  • Binance has officially launched its $1 billion industry recovery fund, and said it is ready to set aside another $1 billion in the near future “if the need arises”.
  • Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group have all joined the fund with a combined contribution of $50 million.
cz

Binance CEO Changpeng Zhao. CoinDesk

Popular cryptocurrency exchange Binance has officially launched its $1 billion Industry Recovery Initiative (IRI), which already received contributions from major industry players, the company said in a blog post on 24 November.

According to the announcement, Binance formed the recovery fund as it felt the need to “lead the charge” when it came to protecting consumers and rebuilding the industry. The company has already committed $1 billion to the IRI, which can be seen at this public address, but said it plans to increase the fund to $2 billion in the near future “if the need arises”.

Binance’s industry recovery fund has also attracted some big names in the industry, including Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group. All these companies agreed to participate in the fund with an initial aggregate commitment of around $50 million, and Binance is expecting to onboard more participants in the near future.

The IRI fund was first announced by Binance CEO Changpeng “CZ” Zhao last week, following the collapse of crypto exchange FTX. The goal of IRI is to help projects that are “otherwise strong” but have been affected by a liquidity crisis by no fault of their own. Yesterday’s announcement revealed that Binance had already received around 150 applications from companies seeking support from the fund.

The initiative will last for about six months, with Binance stressing that the IRI was not an investment fund but a “co-investment opportunity for organizations eager to support the future of Web3”. Those who wish to participate in the fund are required to set aside committed capital in tokens or stablecoins in a publicly available addresses to ensure transparency.

Discussion
Related Coverage
Binance Launches Merkle Tree-Based Proof-of-Reserves System
  • Binance’s new proof-of-reserve system shows it has Bitcoin (BTC) balance of 582,485 tokens, while users have a net balance of 575,742 BTC.
  • The exchange also plans to involve a third-party auditor to verify its PoR system, as well as implement ZK-SNARKs to improve privacy.
November 25, 2022, 4:53 PM
binance

Shutterstock

Binance to Launch Industry Recovery Fund for Struggling Projects
  • Binance CEO Changpeng “CZ” Zhao announced the fund on Monday, noting that it will target potentially strong projects that are facing a liquidity crisis.
  • Tron founder Justin Sun was amongst the first to express his support for the fund by saying that Tron, Huobi Global, and Poloniex will join the initiative.
Binance Pulls Out of Acquisition Deal, FTX Reportedly in Need of $8B
  • Shortly after completing its due diligence process, Binance announced it will no longer pursue the acquisition of FTX, and that the issues were beyond its ability to help.
  • Unnamed sourced told Bloomberg on Wednesday that FTX needed $8 billion in emergency funding, without which it could be forced to file for bankruptcy.