The “savior” of the currency circle is here! Binance spends $1 billion to set up an “industrial recovery fund”

When FTX collapsed overnight, triggering a chain of crisis in the currency circle, Binance (Binance) resolutely took on the task of “savior”. CEO Changpeng Zhao (CZ) said that Binance is setting up a US$1 billion industrial recovery fund to acquire distressed assets in the cryptocurrency field.

Changpeng Zhao said in an interview with Bloomberg TV on November 24 that the move was to prevent the negative impact of FTX’s bankruptcy from continuing to spread. He continued:

If these are not enough, we can also allocate more funds.

To this end, Binance officially issued a statement today (25th) announcing the formal establishment of the “Industry Recovery Initiative” (IRI), and explaining the latest progress and related details.

The statement pointed out that Binance has a conscious responsibility to lead the entire industry to promote user protection and rebuild the industry. Investment Opportunities.

Binance promised to invest at least US$1 billion in IRI-themed investment opportunities initially (Binance’s initial commitment of US$1 billion BUSD public address), and will increase to US$2 billion if necessary in the future.

So far, Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group have committed to an initial fund totaling at least $50 million. Binance expects more participants to join in the short term.

Binance emphasized that IRI is not an investment fund, but to support companies and projects that are “promising”, “high-quality”, and “without poor management but in short-term financial difficulties”. So far, Binance has received around 150 applications for IRI support.

In addition to providing financial assistance, Binance will also provide comprehensive support to projects and their founders, covering team formation, technical implementation, fundraising, etc., in order to enable these projects to stand out in the crypto winter and become more powerful.

Binance expects that this industry recovery plan will last for 6 months, and the investment structure will remain flexible, accepting participants to invest in tokens, legal tender, equity, convertible instruments, debt, credit lines, etc. , and when the project ends, each participant can withdraw the unused remaining funds from the public address.