One of the biggest cryptocurrency exchanges in the world and a big name for all crypto fanatics, Binance, is reportedly launching a $1 billion venture capital fund that is designed to incubate blockchain projects.
According to the Hong Kong-based outlet China Money Network, the head of Binance Labs, Ella Zhang, announced the fund this week at an online meetup. She explained that it will both make direct investments in startups but also invest in other blockchain funds.
Obviously, Binance will make its investments using its BNB token which has a market cap of nearly $1.8 billion right now and is going to serve as the native currency of the firm’s public blockchain.
Meanwhile, the “fund of funds” will seek out 20 funds in which to invest. According to Zhang, to be eligible, the funds must already have $100 million in assets under management (ALM).
Binance has lately been embroiled in a high-profile legal spat with the prominent VC firm Sequoia Capital which alleges that the exchange violated the exclusivity agreement by engaging in funding discussions with other VCs. However, the CEO of Binance, Changpeng Zhao, responded that the firm will require projects to disclose their relationship with Sequoia where they say that they have other tokens listed on the trading platform.
Binance is right now the world’s largest cryptocurrency exchange with a daily volume of more than $1.5 billion. The company hasn’t officially confirmed the announcement for this capital fund yet.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]