Following the fallout from its peer FTX's bankruptcy earlier this month, Binance has established a fund to rebuild the cryptocurrency sector, involving a $1 billion pledge from the industry titan.
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The Industry Recovery Initiative (IRI) fund would be open and accessible on a public address and last roughly six months, according to a blog post published by Binance late on Thursday.
As a major player in the cryptocurrency market, Binance stated that it is its duty to take the initiative in defending customers and reviving the sector.
This occurs after Changpeng Zhao, the founder of Binance, admitted to Bloomberg on Thursday that he had delayed posting about FTX.
In order to "ensure transparency," the business emphasized that the IRI is not an investment fund and that anyone wishing to make an investment through the IRI application procedure must set aside pledged funds in public addresses.
The fund has a flexible organizational structure since it anticipates that "unique situations will require tailored solutions"; it can be financed through tokens, fiat currency, stock, convertible instruments, loans, credit lines, etc.
In response to conventional financial institutions that would not be able to transmit money to a public address, Binance stated that it is open to "exploring other deal formats."
Companies seeking assistance have already submitted over 150 applications. Applications will be open for evaluation by each co-investor in the fund on a deal-by-deal basis.
In the beginning, Binance will devote $1 billion to "IRI-themed investment possibilities," with a potential rise to $2 billion if necessary.
Zhao clarified in a tweet that the $1 billion investment is roughly split across three tokens: Binance Coin, Bitcoin Binance USD, and Binance USD.
So far, a number of businesses have contributed to the fund, totaling $50 million.
Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group are a few of them.
Binance continued, "We anticipate more participants to sign up soon."
Industry peers have reacted to the announcement largely favorably.
The goal of this new initiative, according to the organization, is to help the most innovative, high-caliber businesses and initiatives created by the brightest entrepreneurs and technologists but who, through no fault of their own, are currently experiencing serious, immediate financial challenges.
As the weekly chart exhibits a distinct indicator of strength, bitcoin may follow stocks on a "huge bull run."
It's time to abandon the bear market narrative, according to the most recent analysis from a number of well-known cryptocurrency names.
Despite the fact that everyone is predicting a new macro BTC price low, probably near $12,000, fresh viewpoints necessitate a change of heart.
There are three new reasons to switch to a positive position on Bitcoin at its present price of close to two-year lows, whether it be because of macro or simply plain old Bitcoin price cycles.
The first theory comes from macro analyst Henrik Zeberg and involves a macro market catalyst.
In a tweet from November 24, Zeberg argued that Bitcoin was still behaving similarly to other risky investments, but "not like gold."
There is still no reason to give up on the notion that it will return, even though the FTX controversy has lessened the link between BTC and stocks.
A last rise throughout the risk asset market might push BTC/USD over $100,000, according to Zeberg, who believes that rising tides raise all boats.
"Unlike gold, bitcoin moves as a risk asset. "Final rally before Deflationary Bust!" he tweeted. "When SPX bursts higher in Blow-Off Top into 5700 - 6000 target region - Bitcoin should hit 90k - 110k!"
