Changpeng Zhao, CEO of Binance, disclosed that more than $1 billion had been allocated to the recovery fund. Following the demise of FTX, Binance's US division will rebid on the insolvent loan platform called Voyager.
Binance grabs the lead.
The price of Binance Coin (1) increased by 12.17% on the previous day. Following the fall of FTX, Binance and its CEO Chengpang Zhao (CZ) have been important players in recent weeks. CZ was also motivated to form an industry recovery fund by the collapse of the now-bankrupt FTX exchange. The CEO kept his promise and officially unveiled the Industry Recovery Initiative (IRI) on Thursday.
Binance unveiled the Industry Recovery Fund (2). Initiative (IRI) in favor of the development of web3. Binance offered interested firms the chance to co-invest in the IRI, taking responsibility for consumer protection and industry restoration.
In an interview, CZ said Binance would allocate $1 billion for the fund. The IRI contains a variety of assets, including Binance USD (BUSD), Ethereum (ETH), Tether (USDT), Luffy (LUFFY), and XEN Crypto, according to the fund's address (XEN). The fund is mostly comprised of BUSD, worth $1.002 billion.
Asset allocation under the Industry Recovery Initiative
As previously mentioned, the IRI was created to assist projects with a solid foundation but is experiencing financial issues. Binance stressed that the IRI would only survive six months and would not function as an investment fund. The US intends to make another bid for Voyager. In the interview on Thursday, CZ said that the American branch of Binance, Binance.US, is getting ready to submit another offer for Voyager. Due to the aftermath of FTX, the insolvent exchange withdrew its proposal, allowing Binance to enter again. Zhao offered the following as an explanation of the earlier decision to delay the bid:
"I believe that FTX circulated the allegations about US national security to dissuade us from making the bid. We never had any reservations about taking part in the bid.
The price of Binance Coin rises
The price of Binance Coin increased by 12.17% on the previous day to trade at $298. The exchange token has broken past several barriers and is now aiming for $311 during the coming trading sessions.
On the bigger crypto market, the increase was also noticeable. On Thursday, the overall market value of cryptocurrencies increased by 3.2% to surpass $24 billion. This increased the market's overall size to $789 billion. From this point forward, the market's health is anticipated to improve, pushing the total market cap of all cryptocurrencies up to $800 billion.