© Reuters
Investing.com – Binance, the world’s largest cryptocurrency exchange by trading volume, yesterday announced the creation of a $1 billion fund to support struggling cryptocurrency players. crypto industry, and mitigate the impact of potential future crises similar to the recent FTX bankruptcy.
On its blog, Binance therefore stated that it would commit $1 billion in initial commitments to the recovery fund, and that this amount could be increased to $2 billion longer term, “if the need arises”.
Binance also announced that it has received $50 million in fund equity commitments from companies in the crypto space, including Jump Crypto, Polygon Ventures, and Animoca Brands.
Binance CEO Changpeng Zhao, nicknamed CZ, shared the fund’s public wallet address, emphasizing, “We do this transparently.”
Analysis of the shared wallet confirms a balance of approximately $1 billion in the , a stablecoin issued by blockchain infrastructure company Paxos and is approved and regulated by the New York State Department of Financial Services .
Note that this fund is an attempt by Binance and CZ to restore a modicum of confidence in the crypto industry, a confidence that was largely undermined in 2022 with the collapse of TerraUSD and LUNA, and more recently of the FTX platform and of his .
Binance has therefore made it clear that it is “not an investment fund”, but a reserve that will support companies, “through no fault of their own, who are facing significant and short-term financial difficulties. .”
The company has also clarified that this program will be time-limited and will last 6 months, and is still accepting contributions, whether in cryptocurrency, cash or debt.
Regarding the potential beneficiaries of the fund, Binance said it expects “individual situations will require tailor-made solutions”, and indicated that no less than 150 companies have already applied to take advantage of it.