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Binance is the biggest cryptocurrency exchange in the world. Although it getsĀ a lot of creditĀ from Bitcoin and altcoin enthusiasts, the financial industry still remains on the fence about this firm. The launch of Binanceās new investment fund, on the other hand, will undoubtedly attract a lot of attention.
Another Major MoveĀ by Binance
It has become apparent thatĀ Binance is about so much more than just cryptocurrency trading. Although that will always remain the companyās main bread and butter, the firm is slowly branching out into other ventures as well. Its recent partnership with the government of Uganda, for example, has introduced a lot of people to what this cryptocurrency company is all about.Ā
Launching an investment fund will always get a lot of attention.Ā Thatās not just because it shows the company is doing pretty well for itself, but it also shows that the company is trying to make a bigger impact on the overall industry. This particular investment fund is valued at $1 billion, which is a lotĀ more than most experts would have expected. Most companies donāt have anywhere near that amount of spare cash lying around, after all.
Known as the Community Influence fund, it will be denominated entirely in Binanceās own native currency. The BNB coin has attracted a lot of attention from cryptocurrency speculators over the past few months, mainly because the popularity of Binance has been on the rise since mid-2017. HowĀ the decision to use BNB will affect the future of the Community Influence fund remains to be seen.
According to Binance Labsā Ella Zhang,Ā the new fund will primarily focus on nascent startups in the blockchain and cryptocurrency industry.Ā Other funds will be involved as well, although no further specificsĀ have been provided. ZhangĀ stated that the fund will help create new funds by actively working with fund managers. In order to qualify, those managers will need to have managed $100 million or more in assets.
There will also be a separate Binance Ecosystem Fund which will encompass a total of 20 partners. Although no names have been made public just yet, the remaining details will be revealed pretty soon. All of this shows Binance has some interesting plans for the future, although that doesnāt necessarily mean either of these funds will be successful in the long run.
It is expected that this news will only further increase the popularity of Binance within and outside of the cryptocurrency community. The company is still vital to the future of cryptocurrency, but it is evident there are plenty of other businesses toĀ consider as well.Ā This development willĀ also bring positive attention to the cryptocurrency markets,Ā although no major price spikes should be expected.
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.