Binance, the world’s largest crypto exchange, revealed 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 shockwaves across the entire crypto industry. The fall of the whole empire was deemed one of the enormous destructions of wealth. Not just for the leading platform but even for related companies, as the contagion effect took a series toll.
The crypto community would need to take significant steps to recover from this drawback. Different famed individuals don’t expect a recovery anytime soon because it will be a grind-out of rebuilding trust.
But small steps to build trust and infrastructure could be in play here with this latest development.
Taking it step by step
The largest crypto exchange by volume is leading this front to build the infrastructure following the massive destruction. Binance has announced its Industry Recovery Initiative, a $1 billion fund to help crypto companies in need.
In a Nov. 24 blog, Binance led the charge to protect consumers and rebuild the industry. It added:
“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 committed $1 billion to the fund at a public address, with an additional $1 billion “in the near future if the need arises.” The exchange’s CEO, Changpeng ‘CZ’ Zhao, also commented on the initiative on Twitter:
So far, Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group have committed $50M in total. Binance expects more participants to join soon.
At press time, Binance has received 150 support applications from companies in need. The mandate would support the most promising and highest quality companies and projects built by the best technologists who faced significant, short-term financial difficulties.
Things to consider about IRI
The initiative isn’t an investment fund but a “co-investment opportunity for organizations eager to support the future of web3.
Whereas for different applicants, Binance would 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),” the blog added.
Overall, the discussed program will last six months from the commencement date.
This news comes a week after Binance’s U.S. arm bid for the assets of defunct lending platform Voyager Digital. Indeed another step in closing the gap and regaining trust after the collapse of the FTX exchange.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.