Justin Sun, Tron DAO to Back Binance’s Industry Recovery Fund: Report
Justin Sun’s Tron DAO is reportedly set to provide funding to Binance’s industry recovery fund, according to a report by the Block. Yesterday, the crypto exchange released details of the fund, which is backed by a number of well-known crypto and blockchain firms like Animoca Brands, Kronos, Aptos Labs, Polygon Ventures, GSR, and more.
Binance to Provide $1B in Initial Commitments
Decentralized blockchain operator Tron DAO, founded by crypto entrepreneur Justin Sun, has applied to support Binance’s industry recovery fund, the Block reported. The move comes a day after Binance disclosed details of the fund in a blog post on Thursday.
“We were not aware of the announcement. Different players likely contacted Binance at different times. We have already applied to join this funding initiative and will hear back from them soon.”– a Tron DAO spokesperson told the Block
In the blog post, Binance said it will contribute $1 billion in initial commitments to the recovery fund, which was introduced earlier this month. That figure could jump to $2 billion down the road “if the need arises,” the crypto exchange wrote.
Further, the fund has also received $50 million in funding from Web3 leaders such as Animoca Brands, Polygon Ventures, and the trading firm Jump Crypto. Other Web3 firms that participate in the initiative include GSR, Kronos, and Aptos Labs, among others.
Join our Telegram group and never miss a breaking digital asset story.
150 Companies Seeking Protection Under Binance’s Fund
The recovery fund, called the Industry Recovery Initiative (IRI), was unveiled by Binance CEO Changpeng Zhao earlier in November. The world’s biggest crypto exchange launched the fund in an effort to cushion the blow the crypto industry has taken from the collapses of Terra-LUNA, 3AC, and most recently FTX.
“As a leading player in crypto, we understand that we have a responsibility to lead the charge when it comes to protecting consumers and rebuilding the industry. That is why we have established the Industry Recovery Initiative (IRI), a new co-investment opportunity for organizations eager to support the future of Web3.”Web3 Leaders Join Binance to Spearhead Web3 Industry Recovery Initiative
Binance noted it has already received roughly 150 applications from companies that seek protection under the recovery fund. It added that each co-investor in the fund will be able to review potential deals and choose for themselves if they wish to contribute.
The crypto exchange said each participant must set aside committed capital – which can be either in stablecoins or other tokens – “within public addresses to ensure transparency.” It also said it is willing to explore different deal structures for traditional finance (TradFi) institutions that wish to participate in the initiative.
Do you think Binance is the right company to lead the Web3 Industry Recovery Initiative? Let us know in the comments below.