Binance Unveils Its Plans for a $1 Billion Social Impact Fund
Binance, one of the most important virtual currency exchanges in the market, has announced that it is launching a $1 billion ‘Social Impact Fund’ that is aimed at fostering the growth of blockchain and other crypto-related start-ups.
Apparently, the capital for the fund will come from Binance’s own reserves, so as to contribute to the industry ecosystem. The information has been revealed by Ella Zhang, head of the exchange’s incubator program known as Binance Labs, during an online meetup on May the 31st.
The fund will be giving $1 billion dollars on 10 phases of $100 million dollars each. With that money, the famous exchange will be creating a combination of fund of funds – it will be a fund that invests in other funds – and it will be also directly investing in blockchain projects.
The fund of funds will be searching 20 different funds to invest in. The funds should already manage at least $100 million dollars so as to be eligible. And the investment will be made through the exchange’s own cryptocurrency Binance Coin (BNB).
At the moment, we know that the first project that will be supported is a blockchain-powered ride hailing initiative that was announced by Chen Weixing, CEO of Funcity and founder of the Chinese ride-hailing app known as Kuaidi Dache.
Mrs. Zhang said:
“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.”
At the moment, Binance is the most important virtual currency exchange according to its trading volume ($1.57 billion dollars). The most important trading pairs are BTC/USDT, EOS/BTC, and IOTX/BTC accounting for almost 30% of the total trading volume of the exchange.