Binance worlds Biggest cryptocurrency exchange is going to launch $ 1 billion venture capital fund and purpose of this fund is to aim the projects related to the blockchain and cryptocurrencies. During an online conference, Ella Zhang head of Binance Lab made this public.
According to the source, the company will select 20 fund partners to provide financial support. Those partners must have more than $100 million dollars asset under management and must be active in blockchain industry plus must be a long-term investor.
One important aspect of this fund is that all investment should be made with BNB token also known as Binance token which is of Binance itself and used to trade different cryptocurrencies on the exchange. Binance also thinking to use it for its decentralized exchange in near future after successful testing.
Structure of the fund is like that $ 1 billion will be distributed in 10 phases of $ 100 million each and will create a combination of fund of funds. Fund will be called as ‘Social Impact Fund’ and will be used to tempt cryptocurrency and blockchain startups which making a social impact in society at a great level. In addition, a direct fund will also be there to invest in blockchain related projects only.
The first project in which company investing is a blockchain powered ride-hailing initiative an idea by Chen Weixing, CEO of the Funcity application and also the founder of Kuaidi Dache who made this idea public recently.
According to Mr. Zhang
“We believe it’s a disruptive social experiment. Binance Labs hopes to work with more aspirational projects to explore blockchain applications and together move forward the growth of the industry.”
Right now focus is to invest this fund in 20 projects which had assets under management of $100 million or more and related to blockchain or crypto industry since long.
According to CoinMarketCap Binance is an important cryptocurrency exchange in terms of traded volume and provide a wide range of cryptocurrencies and almost 340 different trading pairs.