Binance Utilizes Remaining $1B Industry Recovery Initiative Fund to Buy BTC, BNB, and ETH Amidst US Bank Crisis
Binance CEO CZ has announced that the remaining funds from the Industry Recovery Initiative (IRI) will be used to purchase BTC, BNB, and ETH. The decision was made in response to the ongoing banking crisis in the United States, which has caused an impact on stablecoins in the cryptocurrency market.
The IRI was established by Binance on November 24, 2021, following a series of liquidity crises in the crypto market. The exchange pledged to invest $1 billion in the fund and publicly disclosed the wallet address holding the funds. The fund quickly attracted large investors such as Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group.
The address: https://t.co/uSy1DlZCyG
— CZ 🔶 Binance (@cz_binance) March 13, 2023
In his Twitter announcement, CZ emphasized that some of the fund’s activities will take place on the blockchain, and all transactions will be publicly transparent. Binance will convert the remaining portion of the IRI, worth $1 billion from BUSD, into cryptocurrencies such as BTC, BNB, and ETH.
The move by Binance to convert the IRI into crypto comes at a time when the US banking crisis is escalating. In March alone, Silvergate Bank, Silicon Valley Bank, and Signature Bank all closed their doors and had their assets seized. Notably, these banks have close ties to major companies in the crypto industry.
In a closed meeting of the US Federal Reserve (FED) on March 13, the federal government pledged to lend money to struggling banks in the country. As a result, depositors at Silicon Valley Bank can retrieve their funds. Additionally, the FED announced a $25 billion bailout package for struggling banks, which has had a positive impact on the crypto market.
Binance’s move to purchase a large amount of crypto has also contributed to the recovery of Bitcoin, which is currently trading at $22,400, up 10% in the past 24 hours, according to TradingView.
The conversion of the IRI into crypto shows Binance’s confidence in the long-term prospects of cryptocurrencies, even in the face of a banking crisis in the US. With the market becoming increasingly unpredictable, it remains to be seen how other exchanges will respond to the current situation.
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