Binance launched the Industry Recovery Initiative (IRI) on Thursday (24), a fund aimed at rescuing crypto projects that face liquidity problems amid the strong crisis that intensified in the sector after the collapse of FTX two years ago. weeks.
The exchange initially allocated $1 billion in the BUSD cryptocurrency, which is pegged to the dollar and issued by Paxos, a company regulated in the US. Early this Friday (25), CEO Changpeng Zhao announced the addition of another US$ 1 billion in BUSD to the fund.
According to Binance, around 150 projects have already expressed a desire for funding. The exchange’s first US$ 1 billion contribution can be granted an official public wallet.
The broker’s objective is to attract other companies willing to put capital in the fund. So far, at least seven players have agreed to join, including Polygon Ventures, the venture capital investment arm of the Polygon project (MATIC), in addition to Animoca Brands, investor in several famous projects, such as the Axie Infinity game – in the last 12 months, the game’s AXS token collapsed by 95%.
Furthermore, blockchain creators Aptos and market maker Jump Crypto, as well as companies GSR, Kronos and Brooker Group, have already announced that they will contribute to the fund. So far, the group has committed to allocating another US$ 50 million.
The fund is open to any company that wishes to contribute, including those in the traditional financial market.
“We recognize that traditional financial institutions may want to participate but cannot send money to public addresses. We are open to exploring other business structures under the broader IRI theme with those institutions that may be interested”, explains the brokerage.
Also according to Binance, the forecast is that the initiative will last “about six months”. The funding structure includes tokens, fiat currency, equities, convertible instruments, debt, lines of credit, among other vehicles.