On November 24, Binance declared on BloombergTV that it is leading the development of an “industry recovery initiative” (IRI). New details about the initiative to take the lead in defending customers and reviving the industry are available on its blog.
The company said as a key participant in the crypto space, they have to take the initiative in defending customers and reviving the sector.
In a public address, Binance pledged $1 billion to the fund, with an additional $1 billion to be donated soon if necessary. The fund’s first participants include Jump Crypto, Polygon, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group. They have each pledged $50 million. 150 other organizations have submitted applications to take part.
The fund revealed last week to lessen the effects of FTX’s demise. Users may check Binance’s pledge of 1 billion BUSD at the following address. In addition, in the coming week, the addresses of other participants will be available.
Participants must put aside committed funds through the recovery fund application procedure to take advantage of investing possibilities. Stablecoins or other tokens may use as capital. Transparency demands that public addresses be disclosed.
The program will run for around six months with a flexible investment structure. The recovery fund, according to Binance, is not an investment fund. If necessary, Binance plans to increase its investment to $2 billion “shortly after.”
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Additionally, the IRI is a “co-investment option for companies keen to promote the development of Web3,” not an investment fund. Participants who wish to participate must declare their commitment to investing money in a public address.
Moreover, if conventional financial institutions cannot transmit money to a public address, the fund may look into options for them to establish an alternate method.