Key Contributors To Binance Web3 Industry Recovery Initiative Revealed
- Crypto-focused firms like Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group have all committed to participating with an initial aggregate commitment of around $50 million.
- Binance has contributed close to $1 billion to the cause in terms of its own stablecoin, BUSD and will increase the amount to 2 billion BUSD in the near future if needed.
- Along with funding, the co-investors in the IRI will provide projects with comprehensive support ranging from formation and technical execution to fundraising.
Binance, the world’s biggest crypto exchange by trading volume, has taken the initiative to spearhead the recovery of the crypto and Web3 industry which has been affected severely by the implosion of the former multi-billion dollar crypto exchange FTX. The names of the some of the contributors to the fund have been revealed in a blog post by the leading crypto exchange.
Interestingly, it is also crucial to note that Binance has contributed close to $1 billion to the cause in terms of its own stablecoin, BUSD. The stablecoin of the exchange has been backed by strong reserves as per the exchange which recently made a controversial announcement of forbidding the deposit of other dollar-based stablecoins like TUSD and USDC and auto-conversion of all existing stablecoins to BUSD.
“As a leading player in crypto, we understand that we have a responsibility to lead the charge when it comes to protecting consumers and rebuilding the industry. That is why we have established the Industry Recovery Initiative (IRI), a new co-investment opportunity for organizations eager to support the future of Web3,” said Binance in the blog post.
According to the announcement, Binance has already committed 1 billion BUSD to the IRI and will increase the amount to 2 billion in the near future if the need arises. Moreover, crypto-focused firms like Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group have all committed to participating with an initial aggregate commitment of around $50 million.
The address containing 1 billion BUSD has been publicly shared while the address containing the funds of the above-mentioned firms will be revealed next week. Binance confirmed that it has received more than 150 applications for the fund and is currently accepting only select candidates. The co-investors in the IRI will be given the opportunity to review each deal before they solidify their investments so that they can make their own decisions.
Binance said that it “expects some deals will be invested in unilaterally and others will be co-investments with all or some of the IRI participants.” The goal of the IRI is to support those projects that are facing short-term liquidity issues despite being fundamentally strong and having a sound development team. The Changpeng Zhao-led firm wants to restore faith in the Web3 industry.
“Collectively, we will be looking for projects characterized by 1) innovation and long-term value creation, 2) a clearly delineated and viable business model, and 3) a laser focus on risk management,” added Binance.
Along with funding, the co-investors in the IRI will provide projects with comprehensive support ranging from formation and technical execution to fundraising. However, Binance has confirmed that the IRI is not an investment fund and “each participant can withdraw any remaining unused funds from public addresses at the end of the initiative.”