The $1 billion Industry Recovery Fund established by Binance is still dormant
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According to an on-chain analysis by Wu Blockchain citing Scope Protocol data, the $1 billion Industrial Recovery Fund from Binance, one of the world’s largest exchanges, has been dormant since its launch in November. Based on public and immutable blockchain data as of December 30, there has been no significant movement of funds from the tracked address, with the exception of the initial transfer of funds made over four weeks ago.
The Industry Recovery Fund, set up by Binance a few days after the FTX crash in November, was supposed to help rescue or jump-start worthy crypto projects in distress due to liquidity issues caused by the collapse of the exchange led by Sam Bankman and Freed. . At the time, Binance stated that only projects with solid foundations would be considered.
However, there have been no giveaways or major announcements from the popular ramp confirming the use of part or all of the $1 billion kitten.
Instead, in a tweet, Wu Blockchain noted that a series of test transfers had taken place, totaling $57.
It's been 36 days since binance launched the $1B industry recovery fund. No activity has been sent from this wallet since the initial $1B transfer. The only value out of the fund is the 50$ test transactions. According to @ScopeProtocol https://t.co/INklOGhZ5n
— Wu Blockchain (@WuBlockchain) December 30, 2022
The unexpected inactivity, despite initial fanfare, raised questions about the foundation’s status and how the ramp is planned to develop further.
Some speculate that Binance may be combing applications at the moment. By the end of November, more than 150 projects had applied for funding.
Binance to commit $1B to industry recovery fund to assist companies facing a liquidity crisis.
150 firms have already applied 👀
— Crypto Crib (@Crypto_Crib_) November 24, 2022
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On the other hand, skeptics are adamant that the exchange may end up disappointing projects by holding funds longer.
so either there are no worthy companies that need to be saved or only one company is worthy and used up the whole fund singlehandedly and it being a centralised entity at that? both are an embarrassment tho and doesn't make any sense at all.
— wsg (@wes_sg) December 30, 2022
$1 Billion Industry Recovery Fund Target
Binance declared on November 24 that the Industrial Recovery Fund includes contributions from co-investors seeking to alleviate the liquidity crisis facing the cryptosphere. Several well-known firms have invested $50 million, including Jump Crypto, Polygon Ventures, Animoca Brands, Kronos, Aptos Labs, GSR, and Brooker Group.
Jump Crypto among firms to participate in initial commitment of around USD 50 million to Binance's Recovery Fund.
Steady lads, deploying spare change found underneath couch cushions. pic.twitter.com/ja9hHJTVzu
— Dylan LeClair 🟠 (@DylanLeClair_) November 25, 2022
Binance CEO Changpeng Zhao said they have a flexible strategy where different business players can help in any way they see fit by distributing funds.
