Binance pledges to support $2 billion to ‘rescue’ the crypto industry

Binance, the world’s largest cryptocurrency exchange owned by billionaire Changpeng Zhao, has committed up to $2 billion in financing to support struggling crypto companies following the collapse of the cryptocurrency exchange. FTX.

Binance has just said it will set up a $1 billion reconstruction fund with the goal of increasing the amount to $2 billion in the near future “if necessary.”

The exchange operator has received a total of approximately $50 million in initial commitment from seven investment firms, including Hong Kong-based Animoca Brands and Jump Crypto, the platform’s digital asset arm. Jump Trading platform is based in Chicago.

Binance’s bailout comes as former billionaire Sam Bankman-Fried’s FTX is undergoing bankruptcy proceedings.

This event has brought more and more cryptocurrency companies and trading platform-related businesses to the brink of collapse. Among them, it is possible to mention Genesis Global Capital – the crypto-lending company of US billionaire Barry Silbert, and Blockfi – the crypto-lending company that have received credits from FTX.

Binance said that it is looking to support crypto companies and FTX-related projects, saying that the “fault” is not the companies themselves but that they are “faced with difficulties.” short-term, serious financial difficulties”.

The financial backing will last approximately six months, which may involve instruments such as crypto tokens, currencies, equity, debt, or lines of credit.

To date, Binance has received 150 applications from companies seeking help.

According to CNBC , Binance’s wallet balance currently has $1 billion in BUSD. BUSD is a digital currency issued by blockchain infrastructure company Paxos and approved and regulated by the New York State Department of Financial Services (USA).

Zhao can be considered the ‘savior’ of the crypto industry as his company bought or invested in a number of troubled crypto companies, from Voyager Digital to BlockFi, before they collapsed.

Previously, in March 2022, one of the world’s leading blockchain gaming platforms founded by Vietnamese CEO Nguyen Thanh Trung, Axie Infinity also received a $150 million grant led by Binance to reimburse users. use, fix the problem of hackers appropriating tokens worth 625 million USD.

Reference sources: CNBC, Forbes