Binance’s Industry Recovery Initiative Falls Short of Expectations
Binance launched the Industry Recovery Initiative (IRI) to support crypto projects facing liquidity crises, but according to Bloomberg, the initiative has only deployed less than $30 million so far. Binance initially allocated $1 billion in its BUSD stablecoin to the initiative, and other firms added an additional $70 million. However, out of the nine publicly named participants, only Aptos Labs fully invested their pledged funds. Binance spokesperson declined to disclose the names of the 14 projects financed by the IRI or the amounts they received.
IRI Investments and Lackluster Performance
The only public investment made by Binance through the IRI was a $15 million stake in South Korean exchange GOPAX. The remaining funds were moved back to Binance’s corporate treasury for other investments. DWF Labs reportedly deployed $2 million of its $15 million commitment, while Aptos Labs invested more than their committed $5 million. The other participants either failed to deploy any funds or could not be identified.
Challenges in Crypto Investment and Funding
The crypto sector has been struggling for investment this year, with many firms experiencing job cuts. Venture funding for crypto startups hit a two-year low in August at less than $500 million. Binance’s IRI aimed to address these challenges, but it seems that finding suitable projects has been difficult. Binance Labs’ business strategy lead Dana Hou mentioned that they didn’t identify many projects that met their criteria, which was likely the case for other investors as well.
Hot Take: Binance’s IRI Fails to Deliver on Its Promise
Despite its ambitious goal of providing support to struggling crypto projects, Binance’s Industry Recovery Initiative has fallen short. The initiative has deployed less than $30 million out of the $1 billion allocated by Binance and the additional $70 million contributed by other firms. Only one out of the nine publicly named participants fully invested their pledged funds. The lackluster performance of the IRI highlights the challenges faced by the crypto industry in securing investment and funding. As the sector continues to navigate these difficulties, it remains to be seen how effective future initiatives will be in addressing these issues.
By
By
By
By
By
By