In an effort to support the recovery of the sector, Binance has pledged $2 billion to the company’s crypto rescue fund.
Changpeng Zhao, the founder and CEO of Binance, stated that the so-called Industry Recovery Initiative (IRI) may decide to purchase some of the struggling cryptocurrency projects that the now-defunct exchange FTX had purchased.
After FTX’s disastrous bankruptcy, Binance wants to bring the sector back to life.
As a result, the Industry Recovery Initiative, which will enable players affected by a liquidity crisis to request financial assistance, was created by the world’s largest cryptocurrency exchange by volume.
Binance initially invested $1 billion in the project in cryptocurrency, and has since added another $1 billion, effectively increasing the fund’s size to over $2 billion.
The fund will have a “loose” structure, be publicly visible on the blockchain, and allow contributions from other industry players, according to Binance CEO Changpeng “CZ” Zhao in an interview with Bloomberg. CZ shared a link to his company’s initial $1 billion donation, which is kept at a location listed on the BNB Chain.
A total of $50 million has already been contributed to the program by other crypto-native projects, including Aptos Labs, Jump Crypto, Polygon Ventures, Animoca Brands, Brooker Group, Kronos, and GSR Markets.
BNB received 150 financial support applications from various companies
The project, according to Binance, is not a fund for investments but rather a “co-investment opportunity for enterprises willing to promote the future of Web3.” The six-month duration of the rescue effort is anticipated. At the conclusion of the program, contributors will be able to withdraw any unused funds.
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