Binance Prevents Fallout from FTX Bankruptcy... Establishes $1 Billion Fund
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[Asia Economy New York=Special Correspondent Joselgina] Binance, the world's largest cryptocurrency exchange, announced that it will establish a $1 billion industry recovery fund to mitigate the aftershocks in the industry caused by the FTX bankruptcy filing incident.
On the 24th (local time), Binance stated on its blog, "As a leader in the cryptocurrency industry, we recognize our responsibility to protect consumers and lead the rebuilding of the industry," announcing the establishment of the Industry Recovery Initiative (IRI). This is a type of industry recovery fund aimed at supporting companies and projects facing short-term financial difficulties due to FTX's bankruptcy protection filing.
Binance has decided to initially invest $1 billion in the fund. It also plans to increase the amount to $2 billion if necessary. In addition to Binance, IRI includes participants such as cryptocurrency venture capital Jump Crypto, Polygon Ventures, Animoca Brands, GSR, Kronos, and Brooker Group. Binance stated that the initial committed amount is about $50 million, and more participants are expected to join. Binance has also received applications from 150 companies seeking IRI support.
Binance CEO Changpeng Zhao appeared on Bloomberg TV the same day and reaffirmed, "We will establish a $1 billion industry recovery fund," adding, "We will increase it to $2 billion if necessary." Earlier, expressing concern over the aftermath of the FTX incident, he hinted at the establishment of such a fund to "reduce the cascading negative effects." However, he also emphasized that the fund is "not an investment fund."
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The market is currently not showing a significant reaction to this news. Bitcoin is trading around $16,500, up 0.2% from the previous session. Economic media CNBC reported that trading volume in the U.S. is generally low on this Thanksgiving Day.
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