Binance Rescue Fund Deploys Only $30 Million Out Of $1 Billion

After the collapse of FTX, CZ Zhao, founder of Binance, initiated the Industry Recovery Initiative (IRI) with a goal to raise $1 billion for struggling crypto startups. However, the project’s execution has not lived up to the grand vision.

Despite CZ Zhao’s transparency claims, the IRI has only deployed a fraction of its funds, approximately $30 million, with just one out of nine participants fulfilling their commitments.

While Binance led the way with a $1 billion commitment to its stablecoin BUSD, other well-known companies contributed around $70 million. The IRI was structured as an open investment rather than a traditional fund.

Where Are the Binance Rescue Funds?

Binance’s spokesperson disclosed that 14 projects were financed but did not provide details, while $985 million was moved back to Binance’s treasury. The last deal under the IRI was in February.

The lack of follow-through on the IRI’s promises highlights the crypto industry’s volatility and the challenges of delivering on rescue initiatives. As regulatory pressures mount on Binance and its founder, the industry’s future remains uncertain.

Despite the IRI’s shortcomings, the crypto sector still requires support, with venture capital investments declining and deals taking longer to materialize. Binance-backed Aptos Labs and Animoca Brands have made varied investments, illustrating the unpredictability of the crypto market.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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