Is Binance Backing Away from its $1 Billion Investment Promise?
Changpeng Zhao, CEO of Binance, pledged to invest $1 billion in troubled crypto firms through the Industry Recovery Initiative (IRI). However, nearly 11 months later, the IRI has only utilized 3% of the committed amount.
Binance Transfers Funds Back to Corporate Treasury
Bloomberg reports that Binance has only deployed $30 million out of the promised $1 billion. The remaining $985 million has been moved back to Binance’s corporate treasury. The company first transferred the funds to a depositor wallet, then to its Binance 14 hot wallet.
Companies Invested Zero After Committing to IRI
Most companies that committed funds to the IRI have not made any investments. Only Aptos Labs fulfilled its commitment of investing $5 million. There is currently only $32 million left in the public wallets of the IRI.
Frustration and Red Flags
Community members are frustrated with the lack of follow-up on the pledged amount. There are concerns about accountability and doubts about Binance’s financial strength. A Twitter user expressed skepticism about Binance’s intentions, suggesting they were planning to acquire companies at discounted prices.
Hot Take: Binance’s Promise Falls Short
Despite promising to invest $1 billion in troubled crypto firms, Binance has only utilized a small fraction of that amount through the IRI. The majority of companies that committed funds have not made any investments, raising concerns about accountability and Binance’s financial situation. This situation has led to frustration among community members and skepticism about Binance’s intentions.
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