Binance to commit $1 billion to its Industry Recovery Initiative
The funding could be increased in the future as more applicants come forward
Binance has said it will commit to $1 billion in investment opportunities for its previously announced industry recovery initiative.
After the fall of FTX, the crypto market has been shaken up and many investors are feeling uncertain about the current crypto market. Step forward the world’s largest cryptocurrency exchange Binance. CEO of Binance, Changpeng Zhao, recently took to Twitter to announce an industry recovery fund that would be made to help projects secure funding.
An update on the initiative has seen Binance commit to an initial $1 billion promise, with the potential to raise the amount to $2 billion in the future. Binance has stated that the recovery fund has already received around 150 applications from various companies looking for support.
The Binance blog post stated that “Collectively, we will be looking for projects characterised by 1) innovation and long-term value creation, 2) a clearly delineated and viable business model, and 3) a laser focus on risk management”.
The post went on to say, “Aside from funding support, we plan to provide founders and projects with comprehensive support – from formation, technical execution, fundraising, and more – so that they can emerge and grow stronger from the crypto winter”.
In a year where the crypto market has been in decline and investors are wary of their future investments, the Binance initiative could provide a much-needed relief for projects trying to get off the ground.