According to a press release, Aptos Labs and Jump Crypto are renowned crypto firms that pledged to donate $50 million to Binance’s $1 billion Industry Recovery Initiative (IRI).
Jump Crypto, a trading company, and Aptos Labs, the business behind the recently announced Aptos blockchain, are joined in investing to the fund by venture capital companies Polygon Ventures, Animoca Brands, GSR, Kronos, and Brooker Group.
The fund will be used to acquire distressed crypto assets due to the industry-wide collapse over the past year. This year’s recurring issue of bad debt and a liquidity shortage has caused several crypto firms to restrict consumer withdrawals. Several companies have filed for bankruptcy, including the cryptocurrency exchange FTX, Celsius Network, Three Arrows Capital, Voyager Digital, and Compute North.
In an interview with Bloomberg, Binance CEO Changpeng Zhao stated, “If that’s not enough [$1 billion], we can allocate more,” In the future, according to the news release, Binance intends to raise the fund to $2 billion.
‘CZ’ discusses Binance’s $1 billion fund. Source: Bloomberg
Zhao said that the exchange’s U.S. subsidiary would bid on Voyager Digital after the collapse of FTX’s attempt to acquire the lender.