Binance has set up a fund to rebuild the crypto industry following the fallout from the collapse of its FTX counterpart earlier this month, which will entail a $1 billion commitment from the crypto exchange giant.
In a blog post published late Thursday evening, Binance revealed that the fund, called the Industry Recovery Initiative (IRI), will be open and available through a public address for approximately 6 months.
“As a leading player in cryptocurrency, we understand that we have a responsibility to protect consumers and restore the industry,” Binance said.
It comes after Binance founder Changpeng Zhao told Bloomberg on Thursday that he regrets not tweeting about FTX sooner.
The company stressed that IRI is not an investment fund and anyone who wants to invest in the IRI application process must set aside allocated capital in public appeals “to ensure transparency.”
The Foundation has a loose structure as it expects “individual situations will require individual solutions”; it can be funded with tokens, fiat, equity, convertibles, debt, lines of credit, etc.
Binance said it is open to “exploring other transaction structures” aimed at traditional financial institutions that may not be able to send money to a public address.
About 150 applications have already been received from companies that are applying for support. All co-investors of the fund will be able to consider applications for each transaction.
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Binance will initially allocate $1 billion for “IRI-themed investment opportunities” and may increase this commitment to $2 billion if necessary.
AT tweet, Zhao explained that his $1 billion commitment is roughly split between three tokens: Bitcoin BTCUSD,
Binance USD and Binance Coin.
So far, several companies have invested in the fund a total of $50 million.
These include: Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group.
“We expect more members to join us soon,” Binance added.
“The bulk of this new initiative is to support the most promising and high-quality companies and projects created by the best technologists and entrepreneurs who, through no fault of their own, face significant short-term financial difficulties,” the company explained.