Binance is the biggest cryptocurrency exchange in the world. Although it gets a lot of credit from Bitcoin and altcoin enthusiasts, the financial industry still remains on the fence about this firm. The launch of Binance’s new investment fund, on the other hand, will undoubtedly attract a lot of attention.
Another Major Move by Binance
It has become apparent that Binance is about so much more than just cryptocurrency trading. Although that will always remain the company’s main bread and butter, the firm is slowly branching out into other ventures as well. Its recent partnership with the government of Uganda, for example, has introduced a lot of people to what this cryptocurrency company is all about.
Launching an investment fund will always get a lot of attention. That’s not just because it shows the company is doing pretty well for itself, but it also shows that the company is trying to make a bigger impact on the overall industry. This particular investment fund is valued at $1 billion, which is a lot more than most experts would have expected. Most companies don’t have anywhere near that amount of spare cash lying around, after all.
Known as the Community Influence fund, it will be denominated entirely in Binance’s own native currency. The BNB coin has attracted a lot of attention from cryptocurrency speculators over the past few months, mainly because the popularity of Binance has been on the rise since mid-2017. How the decision to use BNB will affect the future of the Community Influence fund remains to be seen.
According to Binance Labs’ Ella Zhang, the new fund will primarily focus on nascent startups in the blockchain and cryptocurrency industry. Other funds will be involved as well, although no further specifics have been provided. Zhang stated that the fund will help create new funds by actively working with fund managers. In order to qualify, those managers will need to have managed $100 million or more in assets.
There will also be a separate Binance Ecosystem Fund which will encompass a total of 20 partners. Although no names have been made public just yet, the remaining details will be revealed pretty soon. All of this shows Binance has some interesting plans for the future, although that doesn’t necessarily mean either of these funds will be successful in the long run.
It is expected that this news will only further increase the popularity of Binance within and outside of the cryptocurrency community. The company is still vital to the future of cryptocurrency, but it is evident there are plenty of other businesses to consider as well. This development will also bring positive attention to the cryptocurrency markets, although no major price spikes should be expected.