Binance to establish the Industry Recovery Initiative to invest in digital sector companies
Cryptocurrency exchange Binance said Thursday that it will allocate $1 billion (approximately Rs. 8,200 crores) to set up an Industry Recovery Initiative (IRI) to invest in companies from the digital asset sector.
The move comes at a time when the cryptocurrency market is teetering on the brink of collapse FTXwhich is seeking Chapter 11 bankruptcy protection in the United States.
Breakup is one of the biggest encryption The world’s stock exchanges have also raised concerns about the industry’s continued ability to attract investment from venture capital and private equity giants.
binance It said it intends to increase its commitment by $2 billion (approximately Rs. 16,340 crores) in the near future as needed.
“We expect this initiative to last about six months and will be flexible in terms of investment structure — tokens, fiat, equities, convertible instruments, debt, lines of credit, etc.” the cryptocurrency exchange added in a statement.
Speaking at a conference in Abu Dhabi last week, Zhao said there was a lot of interest from industry players in a recovery fund his company plans to launch to help cryptocurrency projects facing liquidity pressures, following the collapse of rival FTX.
He said such a fund would help “reduce further negative cascading effects of FTX” without giving an exact number for the fund.
Numerous cryptocurrency firms are bracing for the fallout from the FTX collapse, with many counting their exposure in the millions to the beleaguered exchange.
she was mentioned A few days ago, Binance was also under global regulatory scrutiny following the sudden collapse of cryptocurrency exchange FTX and its affiliates. Speaking to reporters, House Republican Patrick McHenry confirmed that Binance’s role in FTX’s collapse is under scrutiny in Congress. However, Binance CEO Changpeng Zhao aka CZ has declared and vehemently denied his involvement in the FTX crash, stating that his exchange was a victim of the situation.
Binance has repeatedly argued that the cause of FTX’s collapse was ‘financial irregularities and potential fraud’. in the written comments to a parliamentary committee in the United Kingdom. Notably, UK counterparts wanted to know what role Binance had played in the FTX breakdown.
© Thomson Reuters 2022