Here’s where Binance’s crypto recovery fund stands

Yesterday you could read that Binance’s CEO, Changpeng Zhao (CZ), indicated that the crypto exchange is aiming to raise $1 billion for the recently announced industry recovery fund. This recovery fund is intended to help crypto projects that are currently in a liquidity crisis, partly due to all the drama surrounding FTX. The exchange has now released more information about the recovery fund through a blog.

Support to crypto industry

The recovery fund is also referred to as ‘Web3 Industry Recovery Initiative’ with the aim of supporting the growth of the industry. The company said it will initially commit $1 billion to the recovery fund with the intention of increasing that amount to $2 billion in the near future if needed.

That near future appears to be faster than expected, as CZ has now announced via a tweet that Binance would have added an extra billion to the recovery fund. As a result, the crypto exchange has already allocated a total of $2 billion.

So far, Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group have also volunteered to participate in the recovery fund amounting to approximately $50 million. Binance indicated that it expects more participants to join the fund soon.

Crypto companies in trouble

CZ’s exchange has also already received 150 applications from companies that have indicated that they need support. Each co-investor will have the chance to view potential deals and decide for themselves whether they want to participate. Some deals are expected to be unilateral investments and others will be co-investments with all or some of the participants.

Binance also clearly stated who is eligible for the recovery fund:

“The mandate of this new effort is to support the most promising companies and the highest quality projects built by the best technologists and entrepreneurs who, through no fault of their own, are facing significant short-term financial difficulties.”