The world’s biggest cryptocurrency exchange Binance Announces launched a fund to support blockchain and cryptocurrency startups. The initiative which was announced on Thursday will have a focus on public blockchains decentralised exchanges, security token platforms and stable coins.
Ella Zhang, the head of the exchange’s incubator program Binance Labs, revealed the initiative, named “Social Impact Fund”, during an online meetup.
As per Zhang, Binance alone will contribute to the fund, and all investments will be made through Binance (BNB) token. The company plans to invest the $1 billion over 10 phases of $100 million each.
Binance Labs will focus on startups working with public blockchains, decentralized exchanges, custody /payments/wallet, stable digital currency, and compliant alternative trading systems or security token platforms.
Not all funds will be given directly to blockchain startups though. Binance will also be funding other blockchain funds as part of this initiative, provided they already have a fund size of $100 million minimum accumulated assets under management (AUM).
Zhang believes that the new platform has the potential to be a:
“[A] disruptive social experiment. Binance Labs hopes to work with more aspirational projects to explore blockchain applications and together move forward the growth of the industry.”
More broadly, the CEO was keen to point out the care needed in investing in such a young space, remarking that:
“The industry is still at a very early stage, all industry practitioners, should jointly resist the pyramid selling project or ‘scam coin’ and strengthen the industry’s self-regulation.”
Binance is no stranger to the world of venture capital. Changpeng Zhao, the CEO of Binance, is facing ongoing legal pressure from venture capital firm Sequoia, as a result of a funding deal that fell through. According to Hong Kong court filings from March 26 and April 24, Zhao had been courting Sequoia for a possible investment, but negotiations broke down when Zhao’s team told Sequoia that Binance’s existing shareholders thought the proposed deal drastically undervalued the exchange.
Source : thenextweb
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