After the collapse of FTX, Binance founder CZ Zhao initiated the Industry Recovery Initiative (IRI) with the goal of raising $1 billion to help struggling crypto startups. However, the IRI has faced challenges in deploying its funds and fulfilling its commitments.
Despite the ambitious $1 billion target, the IRI has only deployed around $30 million, with just one out of nine participants meeting their commitments. Binance, which led the initiative with a $1 billion commitment in its stablecoin BUSD, contributed the majority of the funds, while other well-known companies added around $70 million. The IRI was structured as an open investment rather than a traditional fund.
Binance’s spokesperson revealed that 14 projects received financing, but no specific details were provided. Additionally, $985 million was returned to Binance’s treasury, and the last deal under the IRI took place in February.
Challenges in Deploying IRI Funds
The challenges faced by the IRI highlight the volatility and unpredictability of the crypto industry, as well as the difficulties in executing rescue initiatives. As regulatory pressures increase on Binance and its founder, the future of the crypto industry remains uncertain.
Despite the shortcomings of the IRI, the crypto sector still requires support, as venture capital investments have declined, and deals are taking longer to materialize. Investments by Binance-backed companies like Aptos Labs and Animoca Brands have shown the varying nature of the crypto market.