Crypto News – According to a report by Bloomberg, Binance CEO Changpeng Zhao‘s grandiose plan to save the cryptocurrency market after the collapse of crypto businesses following the Terra-LUNA crisis and the FTX catastrophe has failed.
1 Billion Dollar Binance Rescue Fund Fails
The crypto community suffered more losses during the bear market, totaling billions of dollars in losses for both individuals and businesses. Only $30 million has been committed by the Industry Recovery Initiative (IRI). Deals are delayed and VC investments are down.
Only one out of nine partners has honored their promises, and only roughly $30 million of the total funds available for deployment have actually been utilized, despite CZ Zhao‘s claims about the IRI’s transparency. With a $1 billion promise to their stablecoin BUSD, Binance grabbed the lead, although other well-known companies contributed roughly $70 million.
IRI May Not Have Fulfilled Its Promises as Crypto Market Volatile
The representative for Binance stated that 14 projects had been funded but did not go into any detail. Additionally, $985 million had been returned to Binance’s cash reserves. The final IRI contract was completed in February. The IRI’s failure to keep its word underlines the turbulence of the cryptocurrency market and the difficulties in carrying out rescue efforts. The future of the sector is still up in the air as regulatory pressure on Binance and its founder grows.
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