The world’s biggest cryptocurrency exchange Binance has launched a fund to support blockchain and cryptocurrency start ups. The initiative which was announced on Thursday will have a focus on public blockchains, decentralised exchanges, security token platforms and stable coins.
The Social Impact Fund as it is called will be rolled out in 10 phases each worth $100 million. All investments will be made in Binance’s native BNB tokens according to Ella Zhang who is in charge of Binance Labs, the company’s incubator program.
Funds with over $100 million worth of assets under management are also set to benefit from the initiative, Zhang revealed.
Binance has its sights on other areas too including the “Cryptocurrency Governance Initiatives” meant to encourage self governance in the sector and help fight scams. Another initiative will be called the “Binance Ecosystem Fund,” Zhang said during an online conference.
Growing trend
Other companies in the blockchain space also their own funds. Ripple, for example, donated a record a record $29 million to support public school projects. The San Francisco company has also been focussing its efforts on supporting blockchain start ups.
Coinbase has a similar initiative to support blockchain start ups. Ethereum also funds innovative blockchain projects.
Companies like Binance and Coinbase have raked in millions of profits in just a few years reflecting the monumental growth in cryptocurrencies.
They are now keen on having cryptocurrencies and other blockchain projects getting into the mainstream. The sector has recently come under intense scrutiny from governments across the world.
Reasons are diverse but they mainly centre on fears over money laundering and terror financing as well threats to financial stability.
Cryptocurrencies have been reeling since the start of the year following an incredible rally in 2017. Total market capitalisation now stands at just $329 billion, a significant drop from over $800 billion at its peaks in January.