This week in crypto: Binance’s $1 billion recovery fund already has contributors
Jump Crypto, Polygon Ventures, and Justin Sun have indicated the desire to contribute to Binance’s recovery fund.
Genesis could file for bankruptcy if it fails to get funding as FTX’s collapse continues to affect more companies.
Cardano’s algorithmic stablecoin will go live in 2023.
Binance’s $1 billion recovery fund off to a positive start
Binance, the world’s leading crypto exchange, announced earlier this week that it targets around $1 billion for its recently announced “industry recovery fund.” the company CEO Changpeng Zhao revealed that the fund’s wallet address would be public so that there would be transparency during the contribution phase.
A few companies have also announced their intention to contribute to the fund. Jump Crypto, Polygon Ventures, Aptos Labs, Tron DAO, Animoca Brands, GSR, and Kronos, all announced this week that they would be contributing to the industry fund. CZ added that these firms have agreed to contribute to the fund with an initial aggregate commitment of around $50 million. Binance said it expects more firms to join the fund as it has received over 150 applications so far.
FTX’s negative impact continues
It has been two weeks since FTX filed for bankruptcy, and the effects are already clear in the crypto market. Earlier this week, FTX-owned Liquid exchange, announced that it had halted trading activities on its platform. The Japanese-based exchange said its decision was due to the ongoing Chapter 11 bankruptcy proceedings of FTX.
Cryptocurrency lending platform Genesis also revealed earlier this week that it is facing a hard time raising funds to continue its operations. Failure to raise funds could see the company file for bankruptcy. Cryptocurrency exchange Binance has reportedly decided against investing in Genesis despite approaches from Digital Currency Group, Genesis’ parent company.
On its part, FTX had requested to hire BitGo to secure its assets as the bankruptcy procedure. The company wants to protect its assets from theft and hacks. In a separate filing earlier this week, FTX revealed that it has a cash balance of $1.24 billion. The money is far below the $3.1 billion FTX owes its top 50 creditors.
Cardano’s algorithmic stablecoin will launch next year
COTI’s CEO, Shahaf Bar-Geffen, announced earlier this week that Djed, Cardano’s over-collateralised algorithmic stablecoin, will go live in January 2023 following a successful full audit.
The Cardano community has taken lessons from Terra’s collapse earlier this year and said it would implement a gradual and slow approach to providing ADA liquidity to the Djed smart contract. Following the launch of Djed, the stablecoin will be integrated with select top Cardano partners to enable more use cases.
ConsenSys collects the IP addresses of MetaMask users
Ethereum-focused software company ConsenSys updated its privacy policy earlier this week, revealing that it collects IP addresses and wallet address information of users who access the Ethereum wallet MetaMask.
The company revealed that it collects the data using the blockchain infrastructure service, Infura. ConsenSys owns both Infura and MetaMask. ConsenSys explained that when users initiate blockchain transactions via their MetaMask wallets, it defaults to Infura. Infura then broadcasts the transaction to the Ethereum blockchain. Afterward, MetaMask connects to Infura via a remote call procedure service (RPC).
However, ConsenSys added that it doesn’t collect data from users who access MetaMask with alternative RPC providers like Ankr, Alchemy and others.
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