- According to a Bloomberg report, the bold plan to rescue the crypto market following CZ’s Terra crisis and the FTX debacle has failed.
- After the collapse of the crypto exchange FTX in November, prices were dropping, and investors were trying to limit their exposure to bankrupt crypto firms and exchanges.
- Binance’s Industry Recovery Initiative (IRI) had major supporters, including Jump Crypto, Animoca Brands, Aptos Labs, Brooker Group, DWF Labs, and Polygon Ventures.
Binance CEO Changpeng “CZ” Zhao’s bold initiative “crypto industry rescue fund” has failed; The amount of funds used has been revealed!
Binance Couldn’t Achieve the Recovery It Targeted
Binance CEO Changpeng “CZ” Zhao’s ambitious effort to rescue the crypto market following the Terra-LUNA crisis and the FTX fiasco, as reported by Bloomberg, has failed. The bear market turned worse for the crypto community with investors and firms losing billions. The Industry Recovery Initiative (IRI) had only invested nearly $30 million.
After the collapse of the crypto exchange FTX in November, prices were dropping, and investors were trying to limit their exposure to bankrupt crypto firms and exchanges, and the initial funding was simply disappearing, prompting the launch of an initiative called the Industry Recovery Initiative (IRI).
Binance’s IRI had major supporters, including Jump Crypto, Animoca Brands, Aptos Labs, Brooker Group, DWF Labs, and Polygon Ventures. These companies aimed to support and finance crypto firms and projects affected by the crisis.
However, the Industry Recovery Initiative (IRI) invested only $30 million in projects. The report reveals that wallet analyses show a much lower inflow than expected, leading to speculation about the once hopeful crypto market recovery efforts.
Increasing Challenges for the Crypto Industry
Challenges arising from Operation Choke Point 2.0 and lawsuits filed by the SEC against Binance, Coinbase, and other crypto firms have created increasing difficulties for the crypto market. The already struggling industry lost focus on recovery amid regulatory issues, lawsuits, and worsening macro conditions.
In March, Binance CEO CZ announced that the remaining funds in the Industry Recovery Initiative would be converted into Bitcoin (BTC), BNB, and Ethereum (ETH) due to the collapse of crypto-friendly banks and stablecoin separation events.
According to Etherscan data, the wallet associated with Binance’s Industry Recovery Initiative currently holds crypto assets worth $1,501.
