In a new development, the venture capital arm of the largest global crypto exchange, Binance Labs, has made a foray into Web3 technology. It recently revealed plans to lead a funding round for GoPlus Security, a Web3 security startup. However, Binance Labs has yet to disclose the funding round’s value.
The crypto market has been struggling with the ongoing crypto winter, and the fall of one of the prominent crypto exchanges, FTX, intensified the market’s decline. Prices of most crypto assets plummeted since the crypto exchange’s implosion.
Also, several crypto firms and venture investors in FTX have recorded losses. The insolvency contagion has been spreading like wildfire. Some companies have stopped withdrawals and other services on their platform. However, most investors still have some confidence in the crypto space, especially with Web3 development.
Binance Labs Supports Security Service GoPlus
An official blog post from Binance disclosed other details concerning the funding. According to the post, GoPlus Security planned to direct the generated fund to launch a security marketplace. Also, it will conduct a new hiring process for the Web3 security infrastructure provider.
GoPlus Security is a popular Web3 security project covering up to 13 chains of several popular blockchains. It offers multidimensional risk detention that facilitates building a safer Web3 environment.
This new support from Binance Labs is coming just a few days following the Binance CEO’s announcement on its increased reserves. According to CEO Changpeng Zhao, the crypto exchange plans to raise its reserves on acquisitions and investments to $1 billion.
Binance CEO Changpeng Zhao
Motive For Supporting The Security Service Provider
The co-founder of Binance and Head of Binance Labs, Yi He, reacted to the new move. He acknowledged the foundational importance of security for the growing Web3 ecosystem and community.
According to Yi, Binance Labs aims for a sustainable and positive impact of security service for end users. This plan formed the basis of their support for a customer-focused project such as GoPlus Security.
A recent estimate on Binance’s numerous supporting programs shows the firm has raised over $325 million for more than 67 projects so far this year. However, a comparison of its commitments last year indicated a lower involvement despite 2021’s more bullish trend in the crypto market. The firm spent about $140 million on 73 projects last year.
Recall that Binance Labs generated $500 million in funds earlier in the year. It aimed to use the generated fund to support most striving Web3 projects and startup firms with great potential in their fields.