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.
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.
- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
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- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.
- Scheduled for 7 July, the suspension will impact AVA, SPELL, BIFI, ALPACA, POLS, ACH, SUPER, and FARM on the BNB Smart Chain, Fantom, Avalanche, and Ethereum networks.
- Binance clarified that trading of these tokens will not be impacted, and that users will still be able to deposit and withdraw them through alternative networks that do not involve the Multichain project.