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Binance CEO Changpeng Zhao says he’s planning to set up a $1 billion fund to rescue distressed crypto assets.
In a new interview with Bloomberg TV, the billionaire says the fund is intended to help those in the crypto space weather the impacts of the FTX collapse and the crypto winter over the next six months.
“We’re thinking about setting aside $1 billion first. And then if that is not enough we can allocate more. And if that’s too much, we are roughly angling for six months, if after six months there are unused funds still left and there are not that many projects — hopefully, the industry will have recovered by then — if there are still unused funds we can withdraw it back.”
According to a recent Binance blog post, the company plans to commit an initial $1 billion to the fund, which is called the Industry Recovery Initiative (IRI) and may double it to $2 billion if there is a need.
“The mandate of this new effort is to support the most promising and highest quality companies and projects built by the best technologists and entrepreneurs that, through no fault of their own, are facing significant, short-term, financial difficulties. What makes this initiative unique is the collaborative approach to restoring confidence in Web3.”
Zhao announced earlier this month his intentions to set up the fund, but at the time didn’t give specific details.
According to Binance, projects can apply for funding online. The company says they have received about 150 applicants so far and are looking to disperse funds to projects that show innovation and long-term value creation, a viable business model and risk management.