Binance’s $1 billion crypto fund for blockchain
There has been an interesting development in the world of cryptocurrency and blockchain technology. Binance, which is the largest ever cryptocurrency exchange to exist, launched a startling $1 billion growth fund recently in furtherance of the growth of its Binance Smart Chain, which is well known for its decentralized financial (DeFI) ecosystem and consensus mechanism.
Changpeng Zhao is the founder of Binance. It is based in the Cayman Islands, and it is known among cryptocurrency enthusiasts to be one of the best exchanges in the world, where the fees are very minimal. It is also said to be much faster than other forms of cryptocurrency and a serious competitor to Ethereum.
Four categories
So, what is the fund helping to do? The fund has been divided into four categories, i.e., Talent Development, Liquidity Incentive Program, Builder and Incubation Program, and the Investment Program.
Talent development
The Talent Development has been allocated $100 million, and it includes the mentorship of developer communities, the proper education, and sharing of knowledge with those investors who are new to the world of crypto, the provision of academic sponsorships to universities for their growth and development along with running of boot camps.
There is also immense focus and emphasis on the research and development of blockchain technology centered on cryptography. There is a focus on building cross-chain and multi-chain infrastructures and ensuring that they are properly integrated with the many different types of blockchains available.
Liquidity Incentive Program
The Liquidity Incentive Program, which has been allocated $100 million, will focus on increasing the participation of players in traditional financial markets and crypto. This will be done by giving liquidity rewards based on trading volumes, innovation, number of active users, and TVL. The program also seeks to create more flexibility and offer support for professional traders and make the relationship between the investors and digital asset markets more easy-going.
The Builder and Incubation Program
The Builder and Incubation Program has been allocated $300 million. It will be used for conducting hackathons, important development programs, and conferences. It also seeks to incubate about 100 innovative dApps and provide key support.
The Investment Program
Finally, the Investment Program, which has been allocated a huge sum of $500 million, will be focusing on various niches like financial services, metaverse, gaming, artificial intelligence, virtual reality, and decentralized computing as well.
World’s largest crypto accelerator
The fund is undoubtedly the world’s largest crypto accelerator and is already supporting over 60 projects. The focus is on bringing out the best of the talented people out there and increasing creativity, growth, and innovation, thereby improving the future of cryptocurrency.
The future of decentralized finance
So, the future of building decentralized finance has been clearly set in motion. In the future, we are expected to see more liquidity in the DeFi protocols. For anyone who has a project and needs funding, the entire application process for the DeFi Accelerator Fund has been made fairly simple. The process takes about 10 minutes to finish, and there is said to be a 7% approval rate.
The approval is contingent on proper review and examination of the application. Only the most unique, innovative, and bold projects that will make a visible dent in the world of crypto and blockchain are likely to be approved. However, once a project is approved, the funding for each project is generally a whopping sum of $100,000. Thus, the funding and support can change the lives of those with talent and innovation to offer.
Binance coin is on the rise
Binance Coin is now on the rise, making Binance one of the fastest-growing companies of all time. It has recorded a great performance this year, especially since the introduction of the growth fund. The large number of people we see in the world of crypto isn’t all too surprising. After all, decentralization and zero involvement of third parties is an apparent reason why anyone would be drawn to trading and using a Cryptocurrency trading terminal.
The information shows that Binance Coin has already climbed by more than a startling 1000% in 2021, and ever since it introduced the fund, it has risen by 5% in a matter of 24 hours. Thus, it undoubtedly has a very bright future ahead of it and looks very promising. So, the BSC community is reported to thrive now more than ever. It is set to become the first blockchain ecosystem to ever have 1 billion users in it.
Gap between blockchain and finance sector likely to lessen
The fund also aims beyond the context of the Binance Smart Chain. It seeks to improve blockchain technology and successfully integrate it into everyday life. Hence, the expectation is that soon, we may find that the blockchain and the finance sector may find themselves coming closer.
