Did Binance's Industry Recovery Initiative Fall Short?
Binance's Industry Recovery Initiative (IRI), a project established to support the cryptocurrency industry following the collapse of FTX, may not have achieved its desired outcomes, according to a recent report.
$1 Billion Commitment, $15 Million Spent
In November 2022, Binance unveiled the IRI and allocated $15 million of its $1 billion commitment in BUSD stablecoins, as reported by Bloomberg on Oct. 10.
Unveiling the Plan
Binance then moved the remaining $985 million back to its corporate treasury, intending to use it for investments. In March, the funds were converted from BUSD to cryptocurrencies like Bitcoin (BTC) due to regulatory concerns surrounding stablecoins.
Contributions and Funding
In addition to Binance's contribution, the IRI amassed another $100 million from 18 organizations by February 2023. Notable participants include Animoca Brands, Aptos Labs, Jump Crypto, and Polygon Ventures.
Mystery Projects and Investments
Despite claiming to have funded 14 projects, Binance has not disclosed the names of the companies that received funding. The only known expense so far is Binance's acquisition of South Korean crypto exchange Gopax.
Less Than $30 Million Invested
Bloomberg's wallet data analysis revealed that the IRI has only invested less than $30 million since its launch. Among the nine named participants, only DWF Labs and Binance-backed Aptos have utilized some of the committed funds.
Status Unknown
It remains uncertain whether the IRI is actively supporting cryptocurrency projects, as its Google Docs applicant form is still active. Binance has yet to respond to requests for comment.
Industry Struggles for Funding
The IRI's sizable capital commitments compared to its actual contributions highlight the struggle for funding within the cryptocurrency industry. According to blockchain analytics firm Messari, cryptocurrency venture funding has plummeted by up to 70% since Q3 2022. Q3 2023 saw a mere $2 billion in crypto VC volumes, a significant decrease from the record-setting $17 billion in Q1 2021.
