{"id":14808,"date":"2022-11-25T12:48:18","date_gmt":"2022-11-25T12:48:18","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binance-launches-billion-dollar-crypto-industry-recovery-fund-to-restore-confidence-after-ftx-meltdown-finance-bitcoin-news\/"},"modified":"2022-11-25T12:48:18","modified_gmt":"2022-11-25T12:48:18","slug":"binance-launches-billion-dollar-crypto-industry-recovery-fund-to-restore-confidence-after-ftx-meltdown-finance-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binance-launches-billion-dollar-crypto-industry-recovery-fund-to-restore-confidence-after-ftx-meltdown-finance-bitcoin-news\/","title":{"rendered":"Binance Launches Billion-Dollar Crypto Industry Recovery Fund to Restore Confidence After FTX Meltdown \u2013 Finance Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Binance has committed $1 billion to a crypto industry recovery initiative to restore confidence following the collapse of crypto exchange FTX. Several other crypto companies have joined Binance\u2019s efforts and committed capital for the recovery fund.<\/strong><\/p>\n

Crypto Industry Recovery Initiative Launched<\/h2>\n

Cryptocurrency exchange Binance unveiled Thursday some details of its Industry Recovery Initiative (IRI), which the crypto firm described as \u201ca new co-investment opportunity for organizations eager to support the future of web3.\u201d<\/p>\n

The announcement states:<\/p>\n

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Initially, Binance will commit USD 1 billion to IRI-themed investment opportunities with an intent to ramp up that amount to USD 2 billion in the near future if the need arises.<\/p>\n<\/blockquote>\n

\u201cSo far, Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group have also committed to participating with an initial aggregate commitment of around USD 50 million, and we expect more participants to join soon,\u201d Binance added. Each participant has set aside committed capital in stablecoins or other tokens.<\/p>\n

\"Binance<\/a><\/p>\n

Binance explained that it will be looking for projects characterized by \u201cinnovation and long-term value creation,\u201d \u201ca clearly delineated and viable business model,\u201d and \u201ca laser focus on risk management.\u201d<\/p>\n

The global crypto exchange noted:<\/p>\n

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What makes this initiative unique is the collaborative approach to restoring confidence in web3.<\/p>\n<\/blockquote>\n

The CEO of Binance, Changpeng Zhao (CZ), first revealed<\/a> that his company is setting up a crypto industry recovery fund last week. The executive explained<\/a> at the time that the purpose of the recovery fund is \u201cto reduce further cascading negative effects of FTX\u201d by helping projects that \u201care otherwise strong, but in a liquidity crisis.\u201d CZ has compared the FTX fiasco to the 2008 financial crisis, warning of \u201ccascading effects<\/a>.\u201d<\/p>\n

FTX filed for Chapter 11 bankruptcy<\/a> on Nov. 11 and former CEO Sam Bankman-Fried stepped down. The company is under investigation in multiple jurisdictions. In the U.S., a number of authorities are investigating<\/a> the exchange for mishandling customer funds.<\/p>\n

Binance explained that the IRI is not an investment fund. \u201cWe have already received around 150 applications from companies seeking support under the IRI,\u201d the exchange noted, elaborating:<\/p>\n

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The mandate of this new effort is to support the most promising and highest quality companies and projects built by the best technologists and entrepreneurs that, through no fault of their own, are facing significant, short term, financial difficulties.<\/p>\n<\/blockquote>\n

The announcement further details that the initiative is expected to last about six months and \u201cwill be flexible on the investment structure \u2014 token, fiat, equity, convertible instruments, debt, credit lines, etc \u2014 as we expect individual situations to require tailored solutions.\u201d<\/p>\n

What do you think about Binance setting up a crypto industry recovery fund? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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