New details: Binance CEO seeks investors for crypto rescue fund: Here’s what’s known about the rescue initiative so far | news

• Binance Names First Supporters of “Industry Recovery Initiative”
• Alleged discussions with investors from Abu Dhabi denied
• Planned loose structure for rescue vehicles

The collapse of the crypto exchange FTX.com sent a tremor through the crypto market and has already dragged other companies into the abyss. However, to keep the domino effect for the industry as low as possible, Binance CEO Changpeng Zhao announced an “Industry Recovery Fund” for the crypto industry in mid-November. Explaining on Twitter that he wanted to help crypto projects that are “otherwise strong but in a liquidity crisis,” Zhao spoke a little later at a conference with great interest from investors and projects in need of help. Otherwise, the Binance boss initially remained vague – but now there were more details.

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These are the first investors for the Binance CEO’s crypto rescue initiative

In a blog post, Binance clarified that the industry recovery fund announced by Changpeng Zhao will ultimately not be a real fund. Instead of an “Industry Recovery Fund”, the blog post only talks about an “Industry Recovery Initiative (IRI)”, i.e. an initiative for industrial recovery. “IRI is not an investment fund,” it says. In an interview with “Bloomberg TV”, the Binance CEO announced shortly before the blog article was published that the “fund” would have a fairly loose structure. The company’s blog names Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group as the first backers of the initiative looking to raise capital. In addition, more than 150 applications have already been received from companies wishing to receive support within the framework of IRI.

However, a report by “Bloomberg” that Binance CEO Changpeng Zhao is said to have spoken to investors from Abu Dhabi about financial support for the initiative was denied. “We talked to some other participants from the Industry Recovery Fund sector – but no one in Abu Dhabi,” Zhao said on “Bloomberg TV”. He was only in town for a conference – and of course I met and talked to other people. The news site, citing insiders, previously reported that the Binance CEO met with people close to Sheikh Tahnoon Bin Zayed — a prominent member of Abu Dhabi’s royal family and national security adviser to the United Arab Emirates — in mid-November to raise money for rescue initiative.

But as a spokesperson for the world’s largest crypto exchange told Bloomberg, all of Zhao’s meetings in Abu Dhabi have focused on broader global regulatory issues, “particularly how regulators in the Middle East could take a global lead by devising more aggressive requirements regarding “Proof-of-custody thinking for crypto exchanges”.

Further details on the structure of the Industry Recovery Initiative

As part of the “Industry Recovery Initiative”, Binance initially wants to provide one billion US dollars, Zhao said in an interview with “Bloomberg TV”. “If it’s not enough, we can collect more,” the Binance CEO said. The company’s blog mentions an increase if necessary to up to two billion US dollars. Investors wishing to participate in the initiative must “have committed capital (either in stablecoins or other tokens […]) in public lectures to ensure transparency,” it continues. At the end of the initiative, which is expected to last about half a year, each participant can withdraw their remaining unused funds from speakers.

The blog post also addresses the rather loose structure of the rescue vehicle. “We assume that this initiative […] will be flexible in terms of investment structure – tokens, fiat, shares, convertible instruments, debt, lines of credit, etc. – as we foresee that individual situations will require tailored solutions,” it says. When IRI will start grappling with crypto projects. , it is said it not to help. However, in an interview with “Bloomberg TV”, the head of Binance hinted that it should start sooner rather than later. “The industry needs to be saved now, not in 2023,” said Zhao. Perhaps we can the first projects will therefore have access to the first funds in the few remaining weeks of 2022.

Editor finanzen.net

Image Credits: Iryna Budanova / Shutterstock.com, Lukasz Stefanski / Shutterstock.com

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