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Binance Raises $500 Million to Invest in Web3 As Digital Currency Market Plunges

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Binance, the world’s largest crypto exchange, has launched its own venture capital fund, Binance Labs, and secured $500 million towards its debut investments. The fund received backing from firms DST Global and Breyer Capital as well as unnamed family offices and corporations, according to CNBC.

Binance Labs intends to use its newly raised capital to invest in Web3 startups. Web3, dubbed by some as “the future of the internet,” offers a new version of the web that’s more decentralized and is based on blockchain technology.

Related: In For The Long Haul: Binance Founder And CEO Changpeng Zhao Is Going All In For Crypto

The launch of Binance’s venture comes when the cryptocurrency industry is struggling. Since hitting all-time highs in November, Bitcoin and other digital currencies have steadily declined, plunging more than 50% since their peaks. Binance Labs is utilizing the plunge in hopes of investing in the next wave of technology. Its investments will be split between pre-seed, early-stage and growth equity, as well as tokens and shares — all with companies created to “drive the growth of the Web3 ecosystem.”

The firm also intends to acquire a $500 million stake in Twitter to support Elon Musk’s bid to buy it, in hopes of “bringing social media and Web3 together.”

Binance’s investment initiatives reflect a possible turning point in the crypto market as firms seek the next big thing in tech in the wake of plunging shares and collapse of stablecoin TerraUSD. The launch of Binance Labs comes just a week after venture capital firm Andreessen Horowitz announced a $4.5 billion fund for investment in crypto startups.

Related: As Crypto Prices Continue to Plunge, These Companies Are Preparing to Take Advantage

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