Binance, an international cryptocurrency exchange, announced a fund of $1 billion for blockchain based startups. Ella Zhang, the head of the Binance Labs, revealed the initiative, named “Social Impact Fund” on Thursday through an online conference.
The Startup initiative
The company plans to invest the $1 billion fund over 10 phases for any cryptocurrency based startup. Binance Labs is the incubator program that will focus on funding and mentoring startup projects working with public blockchains, crypto exchange, payments, digital wallet and security token platforms. Binance plans on two other initiatives called ‘Binance Ecosystem Fund’ with twenty partners and a Cryptocurrency Governance Initiatives (CGI) focusing on self-regulation and fighting scams. The company also revealed that its first project will be with Dache Chain, a bike riding startup that focuses on blockchain based payments in China
Background of Binance
Binance ranks as the world’s most active crypto exchange, with over $5 billion in trade. The service founded in 2017, raised 15 million dollars in its ICO using BNB tokens. Following this, many crypto exchanges and companies adopted a similar ICO model by issuing their own tokens The company was founded in China in 2017 but moved base in Taiwan due to a staunch ban of cryptocurrency from China and Japan. Binance has made a couple of investments including a $30 million investment in MobileCoin, smart contract startup Oasis Labs, verification service Certik, and crowdfunding platform Republic.
The cryptocurrency era
Binance is not the only company that is funding startups and financing blockchain based ventures. Major cryptocurrency based companies such as Coinbase, Litecoin, and Ethereum have also been funding heavily in blockchain startups as well. It is amazing how the trend and rage for cryptocurrency in 2017 are already attracting and driving funds from companies who are willing to help and invest. This shows the tremendous growth of cryptocurrency in less than a year.