The market’s leading exchange, Binance, announced the launch of a $ 1 billion growth fund to help accelerate the adoption of digital assets and blockchain technology. All this, through its Binance Smart Chain (BSC) business unit, the company reported on Tuesday.
The growth fund aims to further boost BSC’s position in the sector. So far, BSC has managed to take advantage of Ethereum’s shortcomings in terms of high gas rates and congestion, which have led to scalability issues.
Amid high adoption of cryptocurrencies and rising prices, with this fund, Binance seeks to accelerate the adoption of blockchain technology. To begin with, it will seek to support developers by working with them in their ecosystem and integrating other networks.
In this sense, USD 500 million will be allocated to investments in areas including virtual reality, gaming and financial services based on blockchain. According to a statement from Binance. Approximately $ 300 million of the remainder will go to a development program and $ 100 million to cash incentives and talent development.
“With the $ 1 billion initiative, our focus will expand to building cross-chain infrastructure. And, multi-chains integrated with different types of blockchains ”. Gwendolyn Regina, Director of Investments at the BSC Accelerator Fund, said in a statement.
They will also hold training camps for cutting-edge blockchain innovations around cryptocurrencies, high-performance consensus protocols, cross-chain and multi-chain infrastructure.
A fund that seeks to promote Blockchain technology
In the statement, the platform highlighted the high expectations for the advancement of interoperability between traditional infrastructures and Web 3.0:
“With collaborations from industry-leading organizations, the investment fund will focus on scaling blockchain technology for real-life use cases and will close the gap between crypto-blockchain and today’s technical-financial sectors.”
Binance Smart Chain was introduced to the market in September 2020. As a fundamental launch pad to foster the development of decentralized applications, or dApps, compatible with the Ethereum blockchain through the Ethereum virtual machine.
Binance intends to open offices around the world
One of the company’s expansion plans is to open offices around the world. Ireland being one of the first countries on his agenda, . reported last week. With this new fund, Binance joins Houbi in launching plans for the financing of projects related to Blockchain technology.
The last few months have been pretty rough for Binance. Since it has rubbed most of the regulatory authorities around the world in the wrong way and they have collapsed.
Therefore, this movement comes after regulators from different regions have evaluated Binance’s business model. And even warned users that they do not have a license to operate. Faced with this, its CEO, Changpeng Zhao said in July that he would seek to improve relations with regulators and that he would break with his “decentralized” structure by establishing regional headquarters.
The exchange has also faced legal action from regulatory authorities in several countries, including the UK, Italy, the Cayman Islands, Malaysia, the Netherlands, Singapore, Japan, and South Africa.
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