Yello Paradisers! In the wake of FTX’s collapse, Binance took a proactive step by launching the Industry Recovery Initiative (IRI) to assist crypto projects grappling with liquidity issues. The initiative was met with much fanfare, but recent reports by Bloomberg reveal that of the whopping $1 billion set aside for the cause, a mere $30 million has been distributed.
📰 The Composition of the Fund
Binance’s commitment to the IRI was substantial, pledging nearly $1 billion in its BUSD stablecoin. This fund was further bolstered by contributions from various crypto firms, including notable names like Jump Crypto, DWP Labs, Animoca Brands, Aptos Labs, GSR, Kronos Research, Booker Group, and Polygon Labs. The collective contribution from these firms amounted to an additional $70 million.
📰 Transparency Concerns
Despite Binance’s initial promises of transparency, the firm has been tight-lipped about the specifics. While they confirmed the participation of 18 companies in the IRI, they refrained from disclosing the names of these projects or the exact amounts disbursed. Among the publicly known participants, only Aptos Labs has fully utilized the funds they committed to the initiative.
📰 Major Investments and Delays
One of the most significant investments under the IRI was Binance’s $15 million stake in the South Korean crypto exchange, GOPAX. However, this investment is currently in limbo, awaiting approval from South Korea’s financial regulator. The approval process faced a delay in July and is still pending.
📰 Distribution Among Participants
Bloomberg’s report highlighted the distribution patterns among the participants. DWF Labs, for instance, distributed $2 million out of its $15 million commitment to the IRI. In contrast, Aptos Labs went above and beyond, exceeding its initial $5 million pledge. The other participants either did not distribute any funds or their identities and contributions remain undisclosed.
ParadiseTeam🌴
