Polygon, Animoca Brands, and More are Supporting Binance's Web3 Industry Recovery Initiative
The fund has received a $2 billion allocation from Binance and another $50 million allocation from Web3 leaders like Polygon Ventures, Animoca Brands, and more.
Binance's crypto recovery fund sees support from Web3 industry leaders
On Thursday, crypto giant Binance unveiled more details about its Web3 Industry Recovery Initiative (IRI), which the firm described as "a new co-investment opportunity for organizations eager to support the future of Web3."
Initially, Binance committed $1 billion to the fund with the intent to increase that amount to $2 billion. This final target was quickly met, according to Binance CEO Changpeng "CZ" Zhao in a tweet yesterday.
The recovery fund will be used to buy distressed assets and support the Web3 industry. So far, other major players, such as Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group, have allocated around $50 million to IRI.
As of writing, Binance has received around 150 applications from companies seeking support under the fund. Each co-investor will get to review potential deals and decide whether to invest in them.
In a Bloomberg interview, CZ confirmed that some of the ailing crypto projects bought up by now-bankrupt exchange FTX might be on IRI's shopping list. He hasn't confirmed which ones yet. But many expect those affected by the fallout to seek assistance under the fund. Previously, Star Atlas, a premium blockchain gaming project, revealed that a huge portion of its liquidity was shed due to the FTX collapse.
Of course, not everybody will make the cut. According to Binance, only the most promising Web3 companies and projects facing short-term liquidity constraints will benefit from this initiative. The fund will be looking for innovative projects characterized by a viable business model and well-defined risk management.
Besides financial aid, Binance is also looking to provide project founders with extensive support, such as project formation, technical execution, and fundraising, to help them emerge stronger from the crypto slump.
