Binance to invest in Web3 startups

The venture arm of Binance, Binance Labs raised $500 million to invest in startups working on Web3. This is an interesting venture, as the market is entering into a bear phase at the moment. Shares have plunged (including the shares of Coinbase, as per its report), Basically, Web3 is an idea that refers to the newest, Blockchain-based version of the internet.

Binance, one of the biggest cryptocurrency exchanges is planning to launch its own venture capital funds for initiatives like these. Binance has also secured funding from other venture capital firms like DST Global, and Breyer Capital. Earlier, news about Andreessen Horowitz investing $4.5 billion in cryptocurrency startups.

The goal is to fund projects that can be the next big thing in technology and cryptocurrency. The funding will happen in different rounds, pre-seed, early-stage, and growth equity, and will be given on shares and tokens.

The company has invested in several high-profile equities including Forbes, Sky Mavis (developer of Axie Infinity), and Terraform Labs (from project Terra). Li said the company is always ready to invest in early-stage projects, despite the risks.

Binance will also have a $500 million stake in Twitter to combine the concepts of Web3 and social media service. Zhao, CEO of Binance, is ready to invest billions in Web3, and make it a reality (however long it takes). He says he is looking forward to seeing how it will shape itself.