Binance’s $1 billion Industry Recovery Fund remains inactive

by
Blockchain
Binance’s $1 billion Industry Recovery Fund remains inactive

According to an onchain analysis by Wu Blockchain, citing Scope Protocol’s data, the $1 billion Industry Recovery Fund by Binance, one of the world’s largest exchanges, has been inactive since its launch in November. Based on publicly available and immutable blockchain data on Dec. 30, there has been no significant movement of funds from the tracked address apart from the initial funding transfer made over four weeks ago.

The Industry Recovery Fund, created by Binance days after the collapse of the FTX in November, was meant to help bail out or inject momentum to worthy crypto projects under distress due to liquidity problems fueled by the failure of the Sam Bankman-Fried-led exchange. Binance, at that time, said only projects with solid fundamentals would be considered. 

However, there has been no distributions or major announcement from the popular ramp confirming the use of a portion or all of the $1 billion kitty. 

Instead, through a tweet, Wu Blockchain noted that there had been a series of dust, test transfers totaling $57.

The unexpected inactivity, despite the initial fanfare, has raised questions about the status of the fund and how the ramp plans to proceed going forward. 

Some are speculating that Binance may be presently combing through applications. By late November, over 150 projects had applied for funding.

On the other hand, skeptics are adamant the exchange could, after all, end up disappointing projects by holding onto funds for longer.

The aim of the $1b industry recovery fund

Binance stated on Nov. 24 that the Industry Recovery Fund includes contributions from co-investors eager to alleviate the liquidity crunch facing the crypto sphere. Several well-known firms pledged $50 million, including Jump Crypto, Polygon Ventures, Animoca Brands, Kronos, Aptos Labs, GSR, and Brooker Group. 

https://twitter.com/DylanLeClair_/status/1595949573708447744

Binance CEO, Changpeng Zhao, said they were pursuing a flexible strategy in which diverse business players might assist in whatever way they saw fit, distributing funds.

Follow Us on Google News
Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.