Binance earmarks $1 billion for Web3 Industry Recovery Initiative

The cryptocurrency exchange Binance has launched an Industry Recovery Initiative (IRI) aimed at the ‘recovery of the Web3 industry’. The platform has contributed $1 billion to it and announced plans to raise that amount to $2 billion. 

Introducing the Web3 Industry Recovery Initiative! #Binance and a number of key industry partners have joined together to commit $1B+ to provide financial support to the most promising and highest-quality companies that need it most.

Let’s support industry growth together.

— Binance (@binance) November 24, 2022

According to the press release, each participant in the initiative must earmark capital, placing it on public addresses to ensure transparency. 

The initiative’s framework has already registered 150 relevant applications.

As initial commitments, Binance placed roughly $1 billion in BUSD at a public address.

The initiative was supported by Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group — collectively they will contribute around $50 million to the IRI.

“We expect more participants to join them in the near term. […] We understand that traditional financial institutions may want to participate in the project, but cannot send money to a public address. We are open to exploring other structures of deals,” the statement said.

Binance emphasised that participants in the initiative will make decisions independently of each other. When the fund ceases to exist, they will be able to withdraw unused assets. 

IRI will prioritise innovative projects aimed at creating long-term value. Applicants for funding must also have a viable business model and sound risk management. 

In a Bloomberg interview, Binance chief Changpeng Zhao did not rule out the possibility of Binance acquiring FTX’s assets.

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