The crypto exchange is expected to allocate the fund to initiatives in three different stages such as incubation, early-stage venture, and late-stage growth.
On June 1, the venture capital firm Binance announced that it successfully closed down its recently launched $500 million fund to aid various projects in exploring the use cases of crypto and driving the implementation of blockchain and Web3 technologies.
The fund was backed by various institutions, including DST Global, an investment firm that funds late-stage ventures in the internet industry, and Breyer Capital, a worldwide VC dedicated to accelerating high-impact entrepreneurs.
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CEO of Binance, Changpeng Zhao (CZ), also commented on the significance of constructing relationships between economies, value, and people in the Web3 ecosystem. He also highlighted the value of connecting such three aspects and constructing an environment that will ensure mainstream acceptance of cryptocurrencies and blockchain in the near future. He added:
“The goal of the newly closed investment fund is to discover and support projects and founders with the potential to build and to lead Web3 across DeFi, NFTs, gaming, metaverse, social, and more.”
With the $500M fund, Binance seeks to explore and invest in various startups at numerous stages, including incubation, early-stage venture, and late-stage growth.
Binance Labs is widely known for its generous funding for various companies and platforms. For instance, back in April, Binance Labs announced that it would be investing in a Play-to-Earn platform dubbed Merit Circle. In March, the company also invested in Aptos, a Web3 startup that builds a scalable Layer-1 blockchain, to help it "accelerate adoption of the decentralized ecosystem."
On top of that, earlier this year, a group of former Binance executives and managing associates of OFR launched a $100 million venture fund to explore the metaverse and increase cryptocurrencies’ acceptance in various developing countries, including Africa and Latin America.
Currently, the total market capitalization of cryptocurrencies is valued at $1.3 trillion, a 55% decline from $2.9 trillion in November.