In exciting news for Decentralised Finance enthusiasts, Binance CEO Changpeng Zhao has unveiled new investment decisions for the company.
The hugely popular trading platform and crypto exchange is to invest large funds into new DeFi projects and investments, in welcome news to those who see revolutionary possibilities in a shift away from traditional finance and banking.
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Binance’s Remarkable Journey in the Crypto Industry
Zhao has provided the avenue and features that propelled Binance to its popularity and success since its inception. The crypto exchange has become a household name in the ‘cryptoverse’ and it is at times unimaginable to think it only surfaced in 2017. It has had a remarkable journey with significant growth, justifying its status as one of the leading crypto exchanges globally.
Speaking via his Twitter platform ‘CZ‘ stated that the leading cryptocurrency exchange firm is investing on a massive scale in DeFi.
Binance is investing heavily in DeFi.
(not financial advice)
— CZ 🔶 Binance (@cz_binance) October 23, 2022
The exchange has an abundant variety of cryptocurrencies. Its portfolio includes over 350 coins and tokens to trade. The crypto exchange’s progress has earned the trust of many. It now boasts over 120 million users from different regions globally. This facilitates its users to contribute to its $76 billion 24h trading volume. Despite the extreme market conditions in the crypto industry, the crypto exchange company continues to be robust with increased hiring and several partnerships. It also gained regulatory approvals into new jurisdictions to ascertain its status.
Binance’s Expansion and Investment Spree
In a recent interview, the Binance CEO disclosed that the company intends to spend over $1 billion on possible investments and acquisitions in 2022. The firm has also committed to over $325 million in 67 projects this year. Amongst the projects, includes Aptos and Sui. This year, the Binance CEO has focused the company’s investments on Decentralised Finance (DeFi) and Non-Fungible-Tokens (NFTs) rather than distressed digital assets.
According to the CEO, Binance also intends to spend $200 million on the Forbes Media Organisation. At the time, CZ mentioned that the partnership is critical as the media is essential in consumer education around the industry. Additionally, the crypto exchange is gearing up to support Elon Musk’s purchase of Twitter via $500 million in financing.
Binance is yet to reveal any more specific details on its investment projections and ideas. ‘CZ’ has previously been quoted to indicate that he evaluates his investment decisions based on products that have real-world use cases.
In comparison to 2021, the company has a higher investment ratio currently where it only spent $140 million for 73 projects. This is despite the crypto winter’s resilience being stronger than expected. It indicates that the company’s amount of investments have grown significantly together with the size of investments.
The crypto firm has also invested in the NFT ecosystem, fan tokens, and traditional payment service providers.
Binance Pool $500 Million Fund for Bitcoin Miners
Binance has also recently launched a $500 million fund for Bitcoin miners listed privately and publicly. The fund serves Bitcoin miners that cannot cope with the current bear market conditions of crypto. It shall facilitate loans via the company’s mining service, Binance Pool. Bitcoin miners are encouraged to apply by pledging security and acquiring loans with an 18 to 24 months tenure. Binance disclosed that securities can either be physical or digital assets.
The mining fund is similar to Bitmain’s. Jihan Wu, a Chinese crypto billionaire, founded Bitmain as a $250 million fund to purchase distressed assets from Bitcoin miners in September. Maple Finance, a decentralized finance (DeFi) platform, is also assisting miners with working capital through its lending pool with a 20% interest rate. GrayScale is also assisting investors in acquiring Bitcoin mining equipment at low prices through its own investment vehicle.
The current crypto market and Ethereum’s transition into Proof-of-Stake have adversely affected miners. This prompted Binance Pool to initiate a mining pool for ETHW, a coin that retains the Ethereum blockchain‘s initial Proof-of-Work mechanism.
Binance Chain’s Burn to Assist Users
Crypto Lists is also aware of the crypto exchange’s recent major development where the Binance Chain (BNB) successfully destroyed about 2,065,152.42 BNB following its quarterly on Oct 14, 2022. This is the equivalent of $548 million worth of the BNB coin.
The exchange also stated that it utilised its Pioneer Burn Program for an additional 4,833.25 BNB to be part of the burn. The program was initiated to assist users who genuinely lost their digital assets.