A $1 billion industry recovery fund has been created by Binance, one of the world’s largest exchanges, according to an onchain analysis by Woo Blockchain citing data from Scope Protocol. passive Since its launch in November. Based on publicly available immutable blockchain data as of December 30, there has been no significant movement of funds beyond the initial money transfer made four weeks ago from tracked addresses.
Industry Recovery Fund, created by Binance after the collapse of ftx In November, it was in trouble due to liquidity problems stemming from the failure of the Sam Bankman-Fried-led exchange to help bail out or speed up eligible crypto projects. Binance said at the time that only projects with solid fundamentals would be considered.
However, there have been no distributions or major announcements from the popular ramp confirming the use of a portion or all of the $1 billion.
Instead, via a tweet, Wu Blockchain noted that there was a series of dusty, test transfers totaling $57.
The unexpected inactivity despite the initial fanfare has raised questions about the fund’s status and plans to ramp it up going forward.
Some are speculating that Binance may be currently scrambling through applications. By the end of November, more than 150 projects had applied for funding.
Skeptics, on the other hand, are adamant that the exchange could end up disappointing projects by holding funds for long periods of time.
Purpose of $1b Industry Recovery Fund
binance Having said The Industry Recovery Fund on 24 November includes contributions from co-investors wishing to ease the liquidity crunch facing the crypto sector. Several well-known firms pledged $50 million, including Jump Crypto, Polygon Ventures, Animoca Brands, Cronos, Aptos Labs, GSR and Bruker Group.
Changpeng Zhao, CEO of Binance, said that they are adopting a flexible strategy in which diverse business players can assist in distributing funds in whatever way they see fit.
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