The world’s largest crypto exchange, Binance, unveiled an industry recovery initiative – a $1 billion fund to help crypto companies 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 colossal wastages of wealth. The contagion effect took a cascading toll, not only for the major platforms but also for the companies concerned.
To overcome this flaw, the crypto community will need to take significant steps. Different celebrities don’t expect a recovery any time soon because that would be an end to rebuilding trust.
But small steps to build trust and infrastructure can go a long way here with this latest development.
taking it step by step
The largest crypto exchange by volume is leading the charge to rebuild infrastructure after the massive destruction. Binance has announced its Industry Recovery Initiative, a $1 billion fund to help crypto companies in need.
In a November 24 blog, Binance led the charge to protect consumers and rebuild the industry. Added this:
“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 established the Industry Recovery Initiative (IRI) , a new co-investment opportunity for organizations looking to support the future of Web3.”
Binance pledged $1 billion to the fund in a public address, with an additional $1 billion “in the near future if needed.” Changpeng ‘CZ’ Zhao, CEO of the exchange, also commented On the initiative on Twitter:
So far, Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Cronos and Bruker Group have pledged a total of $50M. Binance expects more participants to join soon.
As of press time, Binance has received 150 support applications from companies in need. The mandate will support projects built by the most promising and highest-quality companies and best technologists who have experienced significant, short-term financial difficulties.
Things to consider about IRI
The initiative is not an investment fund, but a “co-investment opportunity for organizations interested in supporting the future of Web3”.
While for various applicants, Binance will look for projects with features such as
“Projects characterized by 1) innovation and long-term value creation, 2) a clearly delineated and viable business model, and 3) a laser focus on risk management (click here to apply),” added the blog.
In total, the discussion program will run for six months from the date of commencement.
The news comes a week after the US unit of Binance bid for the assets of defunct lending platform Voyager Digital. Indeed another step towards closing the gap and regaining trust after the collapse of FTX exchange.
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