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Binance Pledges $2B for Crypto Recovery as More Projects Join
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.
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#Binance SAFU insurance fund ($1 billion USD equ) is roughly split between BTC, BUSD, and BNB. Just that BNB price rose faster than BTC since last rebalance.Yesterday, #Binance allocated ANOTHER $1 billion to the industry recover initiative.Both publicly on the blockchain. https://t.co/Dpu9tNx5NQOn 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.— CZ Binance (@cz_binance) November 25, 2022
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.
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.
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
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