Just the other week, Binance CEO Zhao Changpeng was in Uganda and he promised to support the growth of blockchain technology in the country – beginning with a partnership with Crypto Savanna, a Ugandan blockchain innovation hub, to aid in the economic development of the country’s blockchain literacy. The partnership was key to seek generation of employment, attraction of investments and overall growth in the economy.
Well, that was not the end of the trip, the world’s largest cryptocurrency exchange by trading volume, has announced a $1 billion venture fund for blockchain and cryptocurrency startups.
The initiative, named Social Impact Fund, was revealed by Ella Zhang, the head of the exchange’s incubator program Binance Labs. It is clear that Binance alone will contribute to the fund, and all investments will be made through Binance (BNB) token over 10 phases of $100 million each. The capital for the fund will be coming from Binance’s own reserves as a way to contribute to the industry ecosystem.
The Social Impact Fund will be to the benefit of startups working with public blockchains, decentralized exchanges, custody/payments/wallet, stable digital currency, and compliant alternative trading systems or security token platforms. Binance will also be funding other blockchain funds as part of this initiative, if at all they have a fund size of $100 million minimum accumulated assets under management.
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In the pipeline are two other initiatives, the Binance Ecosystem Fund with twenty future partners and Cryptocurrency Governance Initiatives – aimed at encouraging self-regulation in the industry and fight scams.
Binance is ranked as the world’s most active crypto exchange, with over $5 billion of crypto traded daily. The company is based in Hong Kong but it is in process of relocating to Malta, where it has been welcomed by regulators after it was forced out of Japan when regulators cracked down on its business.