The largest cryptocurrency exchange in the world, Binance, has announced the launch of the $1 billion Industry Recovery Initiative, which will support struggling crypto businesses.
With that piece of news blowing up the crypto space, 7 additional businesses are now pitching in to help.
Binance All Out to Dispell FUD
Binance has been on a mission to give the crypto industry a boost since the collapse of FTX. The FTX collapse sent shockwaves throughout the entire crypto industry with many people rushing to withdraw exchange-held funds due to fears of financial contagion.
The FUD that came after the FTX collapse had been confirmed, was followed by many other connected institutions such as Voyager and Blockfi also announcing asset freezes as the contagion started to manifest.
In the aftermath of all that, the crypto community will need to take significant steps to recover. Many well-known people don’t anticipate a recovery very soon because establishing trust will take time, but Binance is going all out to change that.
Building the Calm After the Storm
With the market drenched in uncertainty, this Binance initiative is a brave first step as the journey to restore the industry begins. It helps that rebuilding trust and infrastructure in the wake of the extensive devastation is being spearheaded by the largest cryptocurrency exchange by volume.
The $1 billion fund to assist struggling cryptocurrency companies will be part of its Industry Recovery Initiative. Binance announced the initiative to defend customers and revive the sector in a blog post on November 24.
In a public address, Binance pledged $1 billion to the fund, with an extra $1 billion “in the near future if the need arises,” according to Changpeng ‘CZ’ Zhao, CEO of the exchange.
To date, $50M has been contributed by Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group. Binance anticipates the addition of more users soon.
At the time of publication, 150 requests for support from struggling businesses had already been made to Binance. The initiative will provide assistance to the most innovative, high-caliber businesses and initiatives created by the top technologists who were experiencing serious, immediate financial challenges.
The project is a co-investment opportunity for organizations willing to assist the future of web3, not an investment fund.
The initiative under discussion will run six months overall from the start date. This information was released a week after Binance’s American subsidiary made a bid for the assets of the shuttered Voyager Digital loan platform. Undoubtedly another step in bridging the divide and regaining trust following the demise of the FTX exchange.
Image Courtesy Of Shutterstock
Subscribe To Our Newsletter
Join our mailing list to receive the latest news and updates from our team.