By
Chimamanda U. Martha
April 19th, 2024
The world’s leading exchange platform breaks into crypto investment starting a new project aimed at supporting new blockchain and crypto startups and funds.
Blockchain and crypto startups are using every opportunity to stand out from the rivals. The support of an influential investor guarantees not only the money needed for future development but also public’s attention.
The investor, in his turn, may get significant return for his money and improve its public image. Successful investment requires deep understanding of the sphere – and who knows the market better than the world’s largest crypto exchange?
Binance has a big name in the crypto sphere: at the time of writing its 24 hour trading volume exceeds $1.5 billion which makes it the biggest exchange at the moment. However, the company has no intention of stopping its development, and recently announced the creation of an investment fund aimed at supporting nascent startups.
The rules for the application process are still to be revealed. However, some of the initial criteria can be described: a startup that wants to get investment from the Binance’s fund has to provide qualifications and not less than $100 million assets under management.
The new ‘Community Influence’ fund has all the chances to become a notable driving force in the crypto sphere. The $1 billion fund will be denominated in BNB coin. This native coin of Binance has a strong position on the market: the market capitalization is almost $1.6 billion which takes it to the 17th position among all the cryptos.
Binance is not only a trustworthy exchange – the company has already gained some experience in crypto investment. The previous case was the $30 million investment in MobileCoin. The project created for simplifying private payments is in the early stage of development but has all the chances to become a big success with the help of Binance Labs. The other projects that got investment from Labs are a smart contract platform Oasis Labs, formal verification platform Certik and crowdfunding platform Republic.
The combination of deep knowledge of the sphere and the leading position in the market makes the new investment fund of Binance a player to be watched. The first project that will get the support of this fund has already been revealed: it is Dache Chain, a China-based ride-hailing service.
The choice is smart as the project is already enjoying close attention. The hype is created by the personality of one of the Dache Chain co-fouders – Сhen Weixing, the CEO of app development startup Funcity. This company was the initial founder of Didi Chuxing, the startup best known for forcing Uber’s exit from China.
The Binance investment fund is not the only project currently developed in the company. The exchange is also about to launch Binance Ecosystem Fund. The details have not been revealed; the only fact given to public is that this fund is expected to include 20 partners.
The news from Binance demonstrates a new trend in the crypto sphere: influential companies support the new players on the market to boost the growth of the main platform. The Binance investment fund will soon take its place next to the Ethereum Community Fund and Ripple’s Xpring initiative.