Binance Pledges $2B to Save Crypto Industry After FTX Crash

Binance, the world’s largest cryptocurrency exchange, has committed $2B to help support crypto firms facing financial hardships after the calamitous bankruptcy of its rival exchange FTX. 

Binance founder and CEO, Changpeng Zhao aka CZ said the so-called Industry Recovery Initiative (IRI) would possibly buy up some of the ailing crypto projects acquired by the now-defunct exchange FTX. The Industry Recovery Initiative will allow firms facing a liquidity crisis to request financial assistance. 

According to Bloomberg, CZ indicated that the fund will have a “loose” structure and be publicly visible on the blockchain, and other industry players also able to contribute to the fund. CZ posted the link to his company’s initial contribution of $1 billion, which is stored at an address on the BNB Chain.

The exchange operator has received a total of about $50 million in an initial commitment from seven investment firms, including Aptos Labs, Jump Crypto, Polygon Ventures, Animoca Brands, Brooker Group, Kronos, and GSR Markets.

Binance said it is looking to back companies and projects that “through no fault of their own, are facing significant, short-term, financial difficulties.” Binance clarifies that the initiative is not an investment fund but a “co-investment opportunity for organizations eager to support the future of Web3.”

The initiative, which will last for roughly six months, could involve instruments such as crypto tokens, fiat currencies, equity, debt, or credit lines. It has so far received 150 applications from companies seeking help.