Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Binance Pledges $2B for Crypto Recovery as More Projects Join

Cryptocurrency Nov 25, 2022 09:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Binance Pledges $2B for Crypto Recovery as More Projects Join

  • Binance will set aside $2 billion in Industry Recover Initiative.
  • More projects have joined, including Aptos Labs and Jump Crypto.

Binance will invest a total of $2 billion in its Industry Recovery Initiative, aimed at limiting contagion from the collapse of rival exchange FTX.

"Yesterday, Binance allocated ANOTHER $1 billion to the industry recover initiative," Binance CEO Changpeng Zhao wrote in a tweet today.

.tweet-container,.twitter-tweet.twitter-tweet-rendered,blockquote.twitter-tweet{min-height:261px}.tweet-container{position:relative}blockquote.twitter-tweet{display:flex;max-width:550px;margin-top:10px;margin-bottom:10px}blockquote.twitter-tweet p{font:20px -apple-system,BlinkMacSystemFont,"Segoe UI",Roboto,Helvetica,Arial,sans-serif}.tweet-container div:first-child{ position:absolute!Important }.tweet-container div:last-child{ position:relative!Important }

On Tuesday, Binance announced that Aptos Labs and crypto trading firm Jump Crypto would join the initiative. Other players contributing to the fund are venture capital funds Polygon Ventures and Animoca Brands, as well as GSR, Kronos, and Brooker Group.

Binance also released more details about the initiative on its blog. They pointed out that Industry Recovery Initiative is not an investment fund but a way for industry leaders to transparently invest in struggling projects.

Participants will set aside funds and transfer them to public wallets. Each participant will make investment decisions independently, on a deal-by deal-basis.

They expect the initiative to last about six months. Afterward, any participant that did not use a portion of their funds can withdraw them from the public address.

Binance SAFU Fund 44% Backed by BNB Token

Earlier, Binance received criticism for keeping 44% of its SAFU fund in BNB tokens.

The Secure Asset Fund for Users (SAFU) is an emergency insurance fund that was created to protect the funds of Binance users. However, some argued that it should not be held in BNB tokens, which could lead to losses if the token devalues.

"How would we feel about FTX having an insurance fund filled with FTT," one critic tweeted. Binance CEO Changpeng Zhao responded by saying that the assets in the SAFU fund were roughly split between BTC, BUSD, and BNB. The discrepancy came because BNB’s price rose faster than Bitcoin’s since the last rebalance, CZ wrote.

Almost all of the tokens in the Binance Industry Recovery Initiative Wallet are in Binance’s BUSD stablecoin.

On the Flipside

  • Binance could face anti-trust scrutiny for buying up struggling projects.

Why You Should Care

The FTX collapse is still having a significant impact on the industry, as many projects continue to suffer from its aftermath. Binance’s $2 billion fund could offer a respite to the markets.

Read about Binance’s first bid after the FTX collapse

Binance to Relaunch Bid for Bankrupt Lender Voyager Following FTX Collapse

Read more about the Binance crypto relief fund

Binance CEO Pledges $1 Billion in Crypto Relief, Suggests FTX Spread Rumors Against Rival

See original on DailyCoin

Binance Pledges $2B for Crypto Recovery as More Projects Join
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
jason xx
jason xx Nov 25, 2022 9:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Where did the 2 billy come from though? Customer accounts or made up tokens?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email