Binance’s Industry Recovery Initiative falls short, raising questions over crypto sector’s future By Investing.com
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The cryptocurrency sector continues to face challenges and uncertainties as Binance’s Industry Recovery Initiative (IRI) falls short of its goals. The $1 billion fund, launched by Binance CEO CZ Zhao on Tuesday, aimed to support struggling crypto startups after the collapse of FTX. Despite the pledged amount, only $30 million has been utilized so far, with just one of the nine participants meeting their commitments.
Binance had pledged $1 billion to its stablecoin BUSD for the IRI, which was supplemented by an additional $70 million from other contributors. However, amid regulatory pressures on Binance and a volatile crypto industry marked by declining venture capital investments and protracted deal closures, the IRI has come under scrutiny due to unclear fund allocation.
The last deal under the IRI took place in February 2023. Since then, there has been no further activity, and $985 million was moved back to Binance’s treasury. Additionally, 14 undisclosed projects were financed through the initiative. This has raised questions about the effectiveness of such rescue initiatives and casts a cloud of uncertainty over the future of the industry.
Investments by Binance-backed Aptos Labs and Animoca Brands have also been noted during this period. However, these investments have not significantly impacted the overall situation of the crypto sector, which continues to need support.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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© Reuters
The cryptocurrency sector continues to face challenges and uncertainties as Binance’s Industry Recovery Initiative (IRI) falls short of its goals. The $1 billion fund, launched by Binance CEO CZ Zhao on Tuesday, aimed to support struggling crypto startups after the collapse of FTX. Despite the pledged amount, only $30 million has been utilized so far, with just one of the nine participants meeting their commitments.
Binance had pledged $1 billion to its stablecoin BUSD for the IRI, which was supplemented by an additional $70 million from other contributors. However, amid regulatory pressures on Binance and a volatile crypto industry marked by declining venture capital investments and protracted deal closures, the IRI has come under scrutiny due to unclear fund allocation.
The last deal under the IRI took place in February 2023. Since then, there has been no further activity, and $985 million was moved back to Binance’s treasury. Additionally, 14 undisclosed projects were financed through the initiative. This has raised questions about the effectiveness of such rescue initiatives and casts a cloud of uncertainty over the future of the industry.
Investments by Binance-backed Aptos Labs and Animoca Brands have also been noted during this period. However, these investments have not significantly impacted the overall situation of the crypto sector, which continues to need support.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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