Binance has announced the formation of what it refers to as an “industry recovery initiative” in the wake of the failure of the cryptocurrency exchange FTX and its sister company, Alameda Research. The fund’s primary objective is to rescue cryptocurrency projects that are facing liquidity issues.
Binance Takes Charge
As a leading player in crypto, Binance has taken the responsibility to lead the charge by establishing the Industry Recovery Initiative (IRI), a new co-investment opportunity for organizations that are eager to support the future of Web3 development.
Binance CEO Changpeng Zhao, commonly known as CZ, shared the public address for Binance’s initial commitment of 1 Billion BUSD in a tweet on Thursday.
We do this transparently.
The public address for Binance’s initial commitment of BUSD 1 billion is: 0x043a80999cEe3711D372FB878768909fbE7F71E6 https://t.co/QX7RGqBabV
— CZ 🔶 Binance (@cz_binance) November 24, 2022
The fund was first hinted by CZ on Monday when he tweeted:
“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund to help projects who are otherwise strong but in a liquidity crisis.”
Later, while delivering a speech at a conference in Abu Dhabi last week, CZ stated that a fund like this would help “reduce further cascading negative effects of FTX”.
Noteworthy Web3 Participants
According to a press release, renowned cryptocurrency companies such as Aptos Labs and Jump Crypto are among those who have committed to donate $50 million to a $1 billion Industry Recovery Initiative (IRI).
Polygon Ventures, Animoca Brands, GSR, Kronos, and Brooker Group are some of the other companies that are taking part.
Binance’s Future Plan
Binance went on to say that it intends to increase the size of its commitment to $2 billion in the near future depending on the need.
“We anticipate this initiative will last about six months and will be flexible on the investment structure — token, fiat, equity, convertible instruments, debt, credit lines, etc,”
Following Binance, crypto exchange OKX on Tuesday also announced $100 million in recovery funds to support projects with liquidity issues and to migrate from Solana.
Read More: OKX Announces Crypto Market Recovery Fund
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Source: https://coingape.com/binance-launches-web3-industry-recovery-initiative/