Binance Bailouts

The past few weeks may have devastated liquidity and morale in the crypto industry, but FTX is not the first storm this market has weathered. Unlike traditional finance, there are no government bailouts in the Web3/digital asset space, but several private companies have pledged to step up and help protocols who may have been affected.

Binance has graciously pledged to donate $1 billion BUSD to a crypto recovery fund.

• Aptos Labs, Animoca Brands, and Kronos were among the early contributors to the fund.
• Jump Crypto, Polygon Ventures, and market maker GSR have also pledged to contribute to the fund.
• Fundraising participants must set aside capital to deploy to those who apply for assistance. This can be in the form of stablecoins or other tokens, but the public address of the funds must be shared for transparency.
• Binance will be looking to use funds to back projects and more established companies that “through no fault of their own, are facing significant, short term, financial difficulties.”

The fund will be available for around 6 months and those interested must complete the application process to participate. Binance has stated that they are open to offering more funding if the need arises. Binance’s $1 billion donation can be verified here.