Binance invites participants to support the crypto industry via a rescue initiative, to which it will initially commit $1 billion.
Binance has established the Industry Recovery Initiative (IRI), which includes its own initial commitment of $1 billion, according to a blog post by the crypto giant.
The IRI is not an investment fund, Binance said, adding that it intends to increase the amount to $2 billion soon if the need arises.
The initiative is expected to last about six months with flexibility on the investment structure, be it token, fiat, equity, convertible instruments, debt, or credit lines. The committed capital must be set aside within public addresses to ensure transparency.
Aside from Binance, there are other existing IRI participants, including Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group which have made an initial aggregate commitment of around $50 million. 150 applications from companies seeking to provide support have also been received.
On the participation of traditional financial institutions, Binance said it was open to exploring other deal structures for those keen as such firms may be unable to send money to a public address.
On the targets for capital deployment, IRI is aiming for companies with «innovation and long-term value creation, a delineated and viable business model, and a laser focus on risk management.
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, the post added.
Meanwhile, the crypto winter persists following the collapse and subsequent revelations of the fallen exchange FTX. Binance had planned initially to acquire FTX but backed out one day after signing a non-binding agreement citing concerns from due diligence and news reports.