The CEO of Binance was failed in starting a $1 billion fund to promote the crypto market

Key Points:

• Industry Recovery Initiative (IRI) from the CEO of Binance, Changpeng Zhao, has experienced a significant decline, with the fund shrinking to just $32 million, despite initially boasting a $1 billion balance.
• The IRI aimed to support struggling startups in the crypto industry, but the current reality falls short of the ambitious promise.
• The decline of the IRI has raised doubts about the sincerity of crypto’s supposed advocates and has led to downsizing and closures in crypto-focused firms.

According a recent Bloomberg article, the Industry Recovery Initiative (IRI), a proposal initiated by Binance CEO Changpeng Zhao after the FTX debacle, has not been successful.

The CEO of Binance and the Failure of the Industry Recovery Initiative

The CEO of Binance Changpeng Zhao’s audacious Industry Recovery Initiative (IRI), initially boasting a formidable $1 billion fund, has witnessed a significant decline, dwindling to a mere $32 million balance, despite deploying less than $30 million of its capital.

Zhao stepped into the role of an industry savior in the wake of the FTX collapse in November, pledging to rescue struggling startups through his Industry Recovery Initiative. This ambitious plan aimed to raise a staggering billion dollars to support crypto-focused ventures affected by the FTX incident.

However, the current reality paints a starkly different picture from the initial promise, as reported by Bloomberg. Their data reveals that Binance’s billion-dollar lifeline has eroded to just $32.4 million, with less than $30 million having been deployed. What was once seen as a beacon of hope for the crypto industry’s revival has now become a quiet disappointment.

The CEO of Binance’s Ambitious Plan and the Disappointing Reality

The muted decline of the IRI has raised doubts among industry leaders regarding the sincerity of crypto’s supposed advocates. Binance’s spokesperson provided limited insight, revealing that the IRI funded 14 projects but withholding specific names and figures. Remarkably, a substantial $985 million of the originally committed funds found their way back to Binance’s corporate treasury.

The sole publicly disclosed investment made through the IRI was Binance’s $15 million majority stake in the South Korean crypto exchange GOPAX. Regulatory hurdles, however, have hindered the completion of this transaction.

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