Binance Contributes $1 Billion to Aid Fund for Crypto Businesses
New York, Nov 24 (.).- Binance, the largest global cryptocurrency exchange platform, announced Thursday that it will contribute $1 billion to a fund to help companies in its sector after the collapse of FTX, which is bankrupt. and that has generated a contagion effect.
The platform, on its corporate blog, indicated that it is committed to contributing 1 billion to the fund and that it could expand it to 2 billion “if the need arises in the near future.”
Seven participating firms, including Polygon Ventures and Kronos, have offered to contribute some $50 million together, and Binance expects others to join.
The mission of the “Industry Recovery Initiative” is to support companies that “are facing significant and short-term difficulties” for reasons beyond “their own fault”, and so far it has already received 150 requests for help, the text indicates. posted today.
Binance, which warns that it is not an “investment fund”, advanced that the initiative will last about six months and will be “flexible” in its structure, so that it can receive everything from tokens to debt or lines of credit, adding that “individual situations require tailor-made solutions”.
FTX, which was once valued at $32 billion and is now in bankruptcy proceedings in the US, could have more than a million creditors worldwide. So far, the company has admitted that it owes more than $3 billion to its top fifty creditors.
The FTX crisis has affected practically the entire crypto-asset sector, and names as well-known as the Genesis platform are experiencing problems, which is seeking funds to avoid bankruptcy.