Binance has launched the Industry Recovery Initiative (IRI), a co-investment enterprise to champion the development of web3. This follows the failure of FTX, which left millions of customers out of pocket and the industry on shaky ground.
Industry Recovery Initiative
The IRI aims to help promising, high-quality projects that may be facing short-term financial challenges. Binance has said that they will look for companies that demonstrate:
- Innovation and long-term value creation
- A clearly delineated and viable business model
- A laser focus on risk management
As well as financial support, the IRI will help founders and firms with technical execution, formation activities, and more.
Binance has already committed $1B to the IRI and plans to increase that figure to $2B.
The crypto exchange is also seeking assistance from other market players to collectively support companies. Jump Crypto, Aptos Labs, Polygon Ventures, and Animoca Brands are just some of the big names that have already pledged approximately $50M. Binance expects this list to grow in the near future.
The exchange has released the public address with the firm’s initial $1B in BUSD funding.
The Industry Recovery Initiative is not an investment fund. Opportunities may arise from IRI activities, but users will need to keep capital separate. Funds can be held in tokens and stablecoins and will need to be stored in public addresses.
Importantly, participants will make investment decisions independently of each other. Additionally, Binance is willing to discuss alternative solutions for traditional financial institutions that cannot send capital to public addresses.
Unused funds can be withdrawn at the end of the period, which is expected to run for approximately six months.
Binance is the largest cryptocurrency exchange by trading volume. The company has millions of clients worldwide and is regulated by several top-tier agencies, including the FCA.
Users can buy, sell and hold hundreds of different tokens, including Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).
Binance offers a range of spot and derivative products, including crypto-cross pairs, crypto-fiat pairs, plus perpetual contracts with leverage up to 1:4. Automated trading is also available through APIs.
The launch of the Industry Recovery Initiative is a promising sign that Binance is alert to industry concerns and wants to do its part to rebuild trust among retail investors.
The crypto exchange also plans to start issuing proof of reserves and maintains a Secure Asset Fund for Users (SAFU), which is an emergency pot to put customers right in the event of security breaches, for example.
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