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<p>The post <a rel="nofollow" href="https://coinpedia.org/news/binances-1-billion-industry-recover-initiative-fails-what-went-wrong/">Binance’s $1 Billion Recovery Initiative Flops: What Went Wrong?</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>A recent <a href="https://www.bloomberg.com/news/articles/2023-10-10/binance-s-1-billion-plan-to-save-crypto-after-ftx-has-quietly-fizzled-out">Bloomberg report</a> revealed that Binance’s highly anticipated Industry Recovery Initiative (IRI), initially seen as a lifeline for a struggling market, has fallen well below expectations. Despite committing a hefty $1 billion, the IRI has only managed to invest a mere $30 million, surprising and worrying many.</p> 
<h2 class="wp-block-heading" id="h-how-it-all-began">How It All Began </h2> 
<p>The IRI was created in response to a string of market crises, including the Terra-LUNA and FTX exchange problems. Binance’s CEO, <a href="https://coinpedia.org/news/binance-ceo-changpeng-zhao-share-insights-on-bitcoin-halving-and-impact-on-btc-price/">Changpeng “CZ” Zhao</a>, introduced this initiative with the aim of stabilizing the rocky cryptocurrency market. With support from big names like Jump Crypto and Polygon Ventures, the goal was to financially assist struggling companies and spark investor interest.</p> 
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   <p lang="en" dir="ltr">Binance CEO’s Industry Recovery Initiative Fails!<a href="https://t.co/0DwLnocPrc">https://t.co/0DwLnocPrc</a></p>— John Morgan (@johnmorganFL) <a href="https://twitter.com/johnmorganFL/status/1711664308298371361?ref_src=twsrc%5Etfw">October 10, 2023</a>
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<p>Despite strong backing and a $1 billion commitment in Binance’s BUSD stablecoin, the IRI has only been able to distribute $30 million. This modest amount has been directed to just 14 undisclosed projects and one purchase – the South Korean crypto exchange, <a href="https://coinpedia.org/news/binance-re-enters-south-korea-through-gopax-deal-what-next/">Gopax.</a> Such limited achievements have left industry observers baffled and disappointed.</p> 
<h2 class="wp-block-heading" id="regulatory-hurdles-in-the-way">Regulatory Hurdles In The Way</h2> 
<p>The IRI faced additional challenges due to changing regulations, particularly the SEC’s legal actions against major players in the crypto industry, including Binance and Coinbase. The emergence of “Operation Choke Point 2.0” added more uncertainty, forcing the IRI to convert its remaining funds into Bitcoin, BNB, and Ethereum because stablecoins faced more scrutiny.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/binances-por-reports-transparency-amidst-legal-uncertainty/">Binance’s POR Reports: Transparency Amidst Legal Uncertainty</a></p> 
<p>Interestingly, Binance decided to move the remaining $985 million back to its corporate treasury, citing “growing regulatory concerns” as the primary reason. This decision has raised questions about the original goals of the initiative and what it intends to achieve.</p> 
<h2 class="wp-block-heading" id="confidence-takes-a-hit">Confidence Takes a Hit</h2> 
<p>The IRI’s underwhelming performance comes at a particularly bad time. According to analytics firm Messari, venture capital funding for crypto-related ventures has dropped by a substantial 70%. The failure of such a high-profile initiative is likely to further shake investor confidence.</p> 
<p>Binance’s IRI’s disappointing outcomes lead to important questions about whether large-scale initiatives are effective in guiding the cryptocurrency market during challenging periods.</p> 
<p>This Might Interest You: <a href="https://coinpedia.org/uncategorized/binance-coin-price-analysis-is-the-coin-dead-whats-next-for-bnb-price/">Binance Coin Price Analysis: Is The Coin Dead? What’s Next For BNB Price?</a></p>

Binance’s $1 Billion Recovery Initiative Flops: What Went Wrong?

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