Aptos Labs and Jump Crypto are among the prominent crypto companies that committed to contributing $50 million to a Binance-led $1 billion Industry Recovery Initiative (IRI), according to a press release.
Other participants include Polygon Ventures, Animoca Brands, GSR, Kronos and Brooker Group.
The fund will be used to buy distressed crypto assets following a downturn that has ravaged the industry for the past 12 months.
A running theme of bad debt and a lack of liquidity has resulted in numerous crypto companies restricting customer withdraws this year, ultimately leading to the bankruptcy of firms like FTX, Celsius Network, Voyager Digital, Three Arrows Capital and Compute North.
Binance plans to increase the fund to $2 billion as it expects more participation from crypto firms in the future, the press release said.
Binance CEO Changpeng Zhao said today that the exchange's U.S. arm will be bidding on Voyager Digital after the lender's deal to be bought by FTX fell through.
(by Oliver Knight)