Skip to content Skip to sidebar Skip to footer

Binance raises $500 million funds to invest in ‘Web3

The world’s largest cryptocurrency exchange, i.e., Binance, is preparing to launch its venture capital fund. Today, Binance Labs – the company’s venture arm, stated that it has already raised $500 million as the debut start-up fund. Moreover, the venture capital fund is backed by the venture capital funds such as Breyer Capital and DST Global. Experts suggest that the fund is also being supported by numerous family offices and corporations whose names are kept anonymous. 

The plan of Binance Labs’ regarding the capital is to invest it in the companies that are building Web 3. As far as Web 3 is concerned, it is nothing more than a hypothetical version of the internet that experts believe is likely to become the face of the internet in the future. Web 3 gives the concept involving decentralization and the incorporation of blockchains. Such an iteration will eliminate the centralized online platform and ensure user privacy and greater trust in the internet. 

Currently, the entire crypto market is facing a crash gloom. The values of stablecoins and numerous cryptocurrencies have plunged drastically. However, Binance Labs is adamant that the initiative of a capital venture fund is likely to find those founders who are building Web 3, which will unambiguously become the next big thing in tech. The initiative’s bets will be split into three stages: pre-seed, early-stage, and growth equity. Moreover, the fund will invest in shares as well as tokens. 

Such an initiative is to start such projects that will aid in the development of Web 3. Binance believes that there are around 300,000 to 500,000 active Web 3 developers worldwide. These numbers are likely to grow massively soon. However, Web 3 is not a simple concept, and it involves numerous aspects. Therefore, projects on the development of Web 3 will include decentralized autonomous organizations, NFTs, and infrastructure. 

Binance has a far-sighted approach toward the development of Web 3. Though it has made multiple investments in the past years, this is the first time they have launched a VC fund. Similarly, Binance is also planning to take a stake in Twitter worth $500 million. Such an action will help Elon Musk’s bid to acquire the social media service. Consequently, Binance believes it will bring Web 3 and social media together if that happens. 

Despite numerous efforts, there are still skeptical people about Web 3. They believe that the concept is excellent, but it will take many years to implement it. However, the Chinese-Canadian entrepreneur Chanpeng Zhao states that nobody knows what exactly will Web 3 look like. Similarly, nobody knew what Facebook would look like before facebook was made live. Therefore, we will have to wait and see what turns out. 

Leave a comment