Binance, the largest known centralized cryptocurrency exchange, announced that it had converted the remaining $1 billion in the Industry Recover Initiative fund it created after the FTX bankruptcy into cryptocurrencies.
Binance Converts Industry Recovery Initiative Fund to Crypto
The Industry Recovery Initiative fund is a recovery fund created by Binance following the collapse of the FTX cryptocurrency exchange. The Industry Recovery Initiative fund has been supported by many companies, including Binance CEO CZ.
Due to the events of last year and the bank collapses this week, the crypto sector has suffered another blow. The first of these blows came with the collapse of Silicon Valley Bank. The collapse of the Silicon Valley Bank affected many companies, especially stablecoins.
Market Impact of Bank Collapses
The wave of bankruptcies started with the collapse of Silicon Valley Bank and continued with Signature and Silvergate Banks, known for their crypto connections. The collapse of the banks affected many crypto companies as well as stablecoins.
Stablecoins such as USDC, USDD, and DAI fell by around 10%, breaking their 1:1 peg. USDC issuer Circle, which was significantly affected by the collapses, recently announced that it has started working to peg the stablecoin back to $1.
As a result of the crisis of banks and stablecoins, Binance CEO Changpeng Zhao announced that he would convert $1 billion in IRI funds into BTC, ETH, and BNB. Binance CEO CZ said:
“Given the changes in stable coins and banks, Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including BTC, BNB and ETH. Some fund movements will occur on-chain. Transparency”
Binance’s wallet linked to the IRI fund held 985,088,975.25 BUSD, worth $979,867,018.59. The difference in value is due to the drop in stablecoins following the collapse of the banks. On the morning of March 13, the BUSD exchange was initiated via Uniswap.
Crypto Market Rises
After Binance’s move to convert its IRI fund into crypto, Bitcoin, BNB, and Ethereum prices have all surged. The news had a positive impact on the global crypto market, with the popular coins rising nearly 10%.