Crypto exchange Binance is launching a $500 million investment fund with the objective of driving the adoption of crypto and blockchain technology.
Real world adoption
The fund has been put together by Binance Labs, the venture capital and accelerator arm of Binance with DST Global Partners and Breyer Capital as co-investors. It plans to invest in projects that drive new use cases for digital assets while furthering web3 technology and innovation. Binance Labs will invest fund capital in projects that are at the incubation, early venture and late growth stages.
Early stage venture investments will be made into infrastructure, DeFi, NFT, gaming, Metaverse, social and crypto adoption projects. Late stage project investment will seek to scale up or bridge projects into the Web3 ecosystem. Binance founder and CEO Changpeng Zhao (CZ) stated that the goal of the investment fund “is to discover and support projects and founders with the potential to build and to lead Web3”.
As the world’s largest crypto exchange by trading volume, Binance has invested in over 100 projects in the digital assets space to date. These include projects like move-to-earn application StepN, scaling solutions Polygon and Optimism, play-to-earn gaming project Axie Infinity and Metaverse project, The Sandbox.
Binance is not just trying to drive adoption purely through investment. Last month the company established the Binance Blockchain and Cryptocurrency Awareness Tour (BCAT) 2022. BCAT aims to drive real world adoption of blockchain and cryptocurrency in Africa through an awareness and educational campaign.
VC investment surge
The digital assets space may well be in the throes of a very painful bear market right now but that doesn’t seem to be putting a damper on investment into the space. The news comes just days after it emerged that former Binance executives were leading a $100 million blockchain investment fund through investment firm, Old Fashion Research (OFR). It too is seeking to achieve greater crypto adoption although with particular focus on emerging markets.
Last month, venture capital firm A16z announced GAMES FUND ONE, its first fund dedicated entirely to gaming, inclusive of blockchain gaming. It followed up later in the month with the raise of a $4.5 billion fund dedicated to crypto and blockchain.
In January, hedge fund Brevan Howard launched its first dedicated crypto fund with the ambition of it reaching in excess of $1 billion of investment.
VC firms know when value is to be had. It’s no coincidence that Andreessen Horowitz’ first crypto fund was established during the ‘crypto winter’ downturn in 2018. While retail investors may struggle with bear market conditions and the market psychology that goes with that, professional investors know that these downturns provide a great opportunity to invest and ‘buidl’.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.