In response to the collapse of the cryptocurrency exchange platform FTX and Alameda Research, Binance has unveiled the development of the now-dubbed industry recovery initiative, where the main goal of the fund is to save crypto projects from liquidity problems.
By launching the Industry Recovery Initiative (IRI), a novel opportunity for firms who are willing to assist the direction of the development of Web3, Binance, a dominant force in the cryptocurrency market, has accepted the duty to assume the leadership role.
On November 24, Changpeng Zhao, the CEO of Binance, aka CZ, tweeted the public address for Binance’s inaugural pledge of 1 billion BUSD.
Changpeng Zhao took to Twitter to originally preview the fund on November 21: “To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund to help projects who are otherwise strong but in a liquidity crisis.”
Furthermore, Changpeng Zhao said that such a fund will aid in reducing additional spiraling bad consequences of FTX in an address at a symposium in Abu Dhabi a week ago.
Reputable crypto businesses like Jump Crypto and Aptos Labs are between many companies who have pledged to give $50 million to a $1 billion Industry Recovery Initiative, per a press release. Additional participants include Animoca Brands, Polygon Ventures, GSR, Brooker Group, as well as Kronos.
Binance continued by stating that, based on demand, it would soon expand the scale of its pledge to $2 billion. November 22 saw the announcement of $100 million in recovery funding for projects with liquidity concerns and to move from Solana by cryptocurrency exchange OKX, which followed Binance in making the announcement.