Binance Becomes Limited Partner In Crypto Hedge Fund With Investment in Multicoin Capital
The largest crypto exchange in terms of volume, Binance, has announced that it has invested in Multicoin Capital. Binance joins renowned investment firms such as Union Square Ventures, Ribbit Capital, and Marc Andreessen in backing the Texas-based crypto investment startup.
This is the first time Binance is investing in such a firm, although the exchange has previously supported many projects using its offshoot Binance Labs. However, Binance did not disclose the exact amount invested in the firm.
In a press statement shared with Bitcoin Exchange Guide, Binance revealed that it has worked with Multicoin Capital on different occasions, and this is just a reaffirmation that the firm is on the right track. The statement reads,
“We have worked with Multicoin Capital on several occasions, mainly in several early-stage blockchain projects. With this new investment, we affirm our conviction in Multicoin’s process and expertise as fund managers.”
A Multicoin official stated that Binance is onboarding an open-end hedge fund revealing that the firm launched a sizeable bet recently on THORChain’s Rune token. Tushar Jain, Multicoin Capital managing partner, stated in a statement,
“We have invested thousands of hours researching Binance and can unequivocally say that is is one of the most strategically important infrastructure providers in the blockchain ecosystem.”
Jain also explained that Binance’s investment represented an important vote of confidence in its mission and comes as a significant responsibility that the firm is ready to take on.
Multicoin Capital was started in 2017 and has made a name for itself in crypto investments. The firm is famous for domain expertise as well as thorough research and analysis.
Binance CEO Changpeng Zha (CZ) explained that Multicoin Capital had played vital roles in some of the industry’s success stories. CZ stated that Multicoin has recently supported crucial projects that have had a positive impact on public markets.