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.
With 150 applicants thus far, Binance’s Recovery Initiative
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.
The fund would have a “loose” structure, be publicly available on the blockchain, and allow contributions from other industry players, according to Binance CEO Changpeng “CZ” Zhao. CZ shared a link to his company’s initial $1 billion donation, which is kept at a location listed on the BNB Chain.
The program has already received $50 million in funding from other crypto-native projects like Aptos Labs, Jump Crypto, Polygon Ventures, Animoca Brands, 6, Kronos, and GSR Markets.
According to a blog post about the project, 150 different companies have submitted financial support applications to the company thus far.
The project, according to Binance, is not a fund for investments but rather a “co-investment opportunity for organizations eager to support 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.
Binance is considering purchasing FTX’s assets
The CEO of Binance, Zhao, also stated in the Bloomberg interview that the company is interested in purchasing troubled assets from FTX, a competitor exchange that is being surrounded. Although he didn’t say which ones specifically, Binance is interested in bitcoin projects that the now-defunct exchange bought.
“We definitely want to look at those assets,” CZ posited. “They invested in a number of different projects, some of them are OK, some of them are bad, but I think there are a number of assets that may be salvageable. We’ll look through that when they become available.”
As a result of FTX’s quick collapse, a new wave of cryptocurrency exchanges and lenders, including BlockFi, are apparently planning for bankruptcy. Voyager Digital has recently reopened the auction after first accepting a $1.4 billion offer from FTX to buy its assets.
With FTX’s demise, CZ’s leading company must now serve as the sector’s savior.