Binance Plans to Help Struggling Crypto Firms Fails
Binance's big plan to raise $1 billion for crypto startups fails, only raising $30 million.
Binance CEO Changpeng Zhao tried to help the struggling crypto industry with a project called the Industry Recovery Initiative (IRI), but it hasn't worked out as planned, says a recent report by Bloomberg. When a big crypto exchange named FTX fell, Zhao wanted to raise $1 billion with the IRI to help new startups survive a tough time in the industry, known as the crypto winter.
Despite big hopes, the IRI did not gather the needed money. It raised less than $30 million, which is way below the target. Even though some really rich companies promised to put in millions of dollars, they couldn’t meet Zhao’s expectations because of the hard times in the crypto world and regulatory issues making things difficult.
Binance has moved $985 million back from the IRI project to its own funds, looking to use it elsewhere. Dana Hou, a big decision-maker at Binance, said that they couldn’t find enough projects that met their standards to invest in. So, the exciting plan to boost the crypto industry did not work as well as everyone hoped.
