Leading cryptocurrency exchange platform Binance has announced plans to launch a USD 1 billion “social impact fund” to aid blockchain and cryptocurrency startups.
Positive action for the industry
As reported by Coin Desk, Binance will contribute over USD 1 billion via 10 installments of USD 100 million each, creating both funds for further investment into blockchain related funds, and direct funding of individual projects.
During an online meetup Thursday, Ella Zhang, head of the exchange’s incubator program at Binance Labs, detailed the investment plans further, noting that Binance is currently looking into 20 investment funds to contribute to. Each of these funds must already be responsible for managing a minimum of USD 100 million to be eligible.
Zhang also outlined the company’s ambition to finance the plan with their own financial reserves, with investments made in BNB token.
While Binance will receive much positive media attention and advertisement from this scheme, providing the funding from their own capital highlights their commitment to the plan as a positive action for the whole industry ecosystem.
“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,” Zhang said.
The first investment is underway
The first project has already been chosen for the funding scheme, with a blockchain ride-hail initiative co-founded by Chen Weixing, CEO of app developer Funcity, being given for the opportunity.
Weixing previously founded Chinese ride-hailing app Kuaidi Dache, before announcing his new project last week at the BigData Expo in Guizhou, China.
While investing first in a high-profile blockchain project helps Binance gain exposure for their funding scheme, it will, of course, benefit the entire industry the most if the project reaches out to smaller start-ups with a viable whitepaper.
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