The world’s largest and leading crypto exchange, Binance, has stated that it is targeting $1 billion as an industry recovery fund for distressed crypto companies.
Announcing this in a Twitter post, Binance introduced the Web3 Industry Recovery Initiative (IRI). It partnered with other key players in the industry to offer financial support to the most promising and highest-quality companies in dire need of support.
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.
— Binance (@binance) November 24, 2022
Let's support industry growth together.
This means companies with innovation and long-term value, viable business models, and a laser focus on risk management.
According to a statement by Binance,
“The mandate of this new effort is to support the most promising and highest quality companies and projects built by the best technologists and entrepreneurs that, through no fault of their own, are facing significant, short term, financial difficulties.”
The IRI is not an investment fund. To access the investment opportunities that come through the IRI application, the participant or company must set aside committed capital within public addresses to ensure transparency.
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All the participants, including Binance, will then assess the investment opportunities and make their decisions independent of the others and on a deal-by-deal basis.
Apart from the financial support, it will provide participants with overall support so they can come out stronger and rise again from the crypto winter.
The initiative is believed to last six months and will be flexible on the investment structure. At the initiative's end, participants can withdraw their remaining unused funds from public addresses.
Binance has shared the public address for its commitment of $1 billion to promote transparency and keep its users abreast of what is going on. The exchange stated it would be increasing that amount to $2B should the need for it arises.
Some crypto companies like Jump Crypto, Polygon Adventures, Aptos Labs, Brooker Group, Animoca Brands, Kronos, and GSR have also committed to participate in the initiative with an aggregate amount of $50 million.
