Binance Announced $1 Billion Investment Fund

Binance Announced $1 Billion Investment Fund

If two years ago cryptocurrencies were mainly traded in the darknet, today blockchain and crypto startups are everywhere. In fact, the sector is growing so fast that once startups months ago companies now have billions to invest in developing projects.

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If two years ago cryptocurrencies were mainly traded in the darknet, today blockchain and crypto startups are everywhere. In fact, the sector is growing so fast that once startups months ago companies now have billions to invest in developing projects.

Binance became one of the largest cryptocurrency exchanges in terms of trading volume in just a few years thanks to the global crypto craze. The company recently announced that it has already developed a blockchain accelerator that will fund prominent projects. The capital of the venture funds amounts to the staggering one billion dollars.

The head of Binance Labs, Ella Zhang, made the news in an online meetup, saying the initiative will go by the name “Social Impact Fund.” Interestingly, Zhang emphasized there would be no other contributors apart from Binance alone. Furthermore, investments will be received in the form of BNB (Binance) tokens. Interestingly, the capital will be spent in 10 phases, meaning Binance will support 10 different startups with $100 million each.

Startups developing decentralized blockchain applications, wallets, exchanges, payment solutions, digital tokens and security token platforms are most likely to get a boost although Binance Labs is open to supporting other startups as well. More specifically, companies that have already gathered $100 million in assets under management might also profit from the Social Impact Fund.

During the online meetup, Zhang took some time to give more information about her company’s other initiatives. Binance Ecosystem Fund will have some 20 additional partners, though Zhang did not specify what will be the purpose of the fund. The other initiative will have the ambitious goal to make crypto-related companies self-govern the sector and combat scam projects. It goes by the name Cryptocurrency Governance Initiatives.

It is fascinating to see how ex-startup companies support newcomers both morally and financially. After all, Binance had already invested in Signal’s native cryptocurrency development in April, while its CEO visited Uganda in an effort to speed up the development of blockchain technologies in the country. What’s even better, other renowned names in the sector are also constantly supporting various projects. For instance, Ripple and Ethereum have both been donating millions of XRP and ETH.