Wed. Apr 17th, 2024

Binance reported that it received requests for help from 150 cryptocurrency companies on the verge of bankruptcy. The requests came after the trade said he would have $1 billion to help with trades. Call “Industry Recovery Initiative”or IRI for short, Binance’s intent is to help struggling businesses recover as many businesses are struggling after the LUNA collapse, followed by the demise of the FTX exchange. The billion dollar fund itself is designed for bailouts, but it may not apply to everyone. This is because the owners of this money, which does not belong only to the brokerage house, are the ones who must decide whether to support it or not.

Binance reported that 150 cryptocurrency companies are in danger of bankruptcy

In a statement in recent days, Binance showed that the situation remains dire for cryptocurrency companies, many of which are already at risk of bankruptcy. Without revealing the names of the companies, the broker limited itself to report that 150 legal persons requested support. All orders can now receive some support, either partial or full, getting their operations back on track. However, it will be up to the investors to decide whether or not to invest in the business.

“We have already received around 150 applications from companies seeking support under the IRI. Each co-investor within IRI will have the opportunity to review potential deals and decide for themselves if they wish to participate. We expect some agreements to be reversed unilaterally. and others that are co-investments with all or some of the IRI participants”.

The intention of the largest exchange, which presented the solution, is to raise more than 2 billion for the recovery fund of the cryptocurrency industry. Said value is protected in BUSD, Binance’s own stablecoin, in tokens through the Ethereum network. The address to check the balance is 0x043a80999cEe3711D372FB878768909fbE7F71E6.

Other companies that support the recovery of the market

According to Binance, Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group have also joined the cause. Thus, they made a deposit of 50 million dollars in the fund, although it is possible that they will make more in the future. Furthermore, Binance reported that more companies are expected to step up with more funding. All this is a reflection of the market adjustment at the end of FTX, which after being a great company in the sector went bankrupt. Its end has certainly stirred the heads of regulators, however, the market is trying to recover to show that there is no need for regulations.

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By Farwa Raza

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