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Binance Labs: what it is and how it works

Binance was known as the cryptocurrency exchange with the most significant trading volume globally in 2018. In particular, Binance Labs is a popular Binance investment fund with a “huge” amount of money to invest in projects with strict project selection conditions. The following article learns about Binance Labs’ portfolio updated in 2022 and how to support this investment fund.

What Is Binance Labs?

Binance Labs is an investment fund within Binance to invest and empower potential individuals, startups and blockchain communities, helping to fund projects in the field of ecosystem development.

Blockchain is getting bigger and bigger. It was established as a joint venture branch of Binance as a fund to invest in “seed” projects for the blockchain ecosystem.

Binance Labs Investment Fund is committed to technical support and community building to help teams grow the blockchain and crypto ecosystem faster – this is the group of people who positively influence the crypto space and decentralized web. Currently, the fund has operated in 25 countries with five content areas and supports the development of more than 100 projects with large investment amounts ranging from $1.5 million to $6 million. Every year, this investment fund chooses to invest only in about 10-30 projects with strict criteria and very high competition rates. Sometimes he invested only in 5-7 projects out of 300 projects.

Binance Labs Portfolio Updated in 2022

As mentioned above, Binance Labs is currently supporting the development of more than 100 projects. As a result, Binance Labs’ portfolio is quite diversified, and the two investment fund segments have focused heavily on Defi, infrastructure projects, and e-wallets.

The projects supported will have many advantages in the development of the ecosystem and participation in IEO on Binance (for example, Coin98, SAFEPAL, Sandbox, …). In addition, Binance’s reputation and prestige also help projects dominate marketing extremely effectively when they are on the Binance List.

More than 100 projects in which Binance Labs invests are in the following areas:

  • oracle
  • Derived
  • analytics
  • aggregator
  • Wallet/Payment
  • Betting
  • agriculture
  • Asset management
  • loan
  • exchange
  • infrastructure
  • NFT/Games
  • other…

Some projects already have Binance tokens and lists

  • Axie Infinity: This is a blockchain game project inspired by the Pokemon game. Axie Infinity allows players to collect various digital pets known as Axie, which can be bred, fought and traded throughout the ever-expanding Axie ecosystem.
  • The Sandbox: A project launched in 2011 by Pixowl is like a virtual world on blockchain, allowing users to create, build and exchange digital assets. Sandbox combines the power of decentralized organizations (DAOs) and NFT to create a decentralized platform for a thriving gaming community.
  • My Neighbor Alice: A game project that allows anyone to buy and own virtual islands and collect and build items. Games like Animal Crossing inspired this project. The My Neighbor Alice project offers an in-game user experience and creates an ecosystem for players who want to collect and trade NFT.

Some projects already have tokens but are not listed on Binance

  • Moonbeam: Blockchain, Smart contract para chain on Polkadot is fully compatible with Ethereum. The Moonbeam project combines the Ethereum engine and Polkadot’s scalable and interactive architecture.
  • Plasm Network (Astar): This is a dApps Hub project on Polkadot that can support Ethereum. The Plasm Network project has an extensible infrastructure and is interoperable with Web 3.0.
  • Pancake Bunny: This is a project on the optimization and aggregation of decentralized finance (Defi) for BSC. The PancakeBunny project is one of the most significant performance aggregators on ETH and BSC in terms of TVL.

Some projects do not yet have tokens.

Dune Analytics: This is a project on a website that aggregates Defi information. This project allows users to put data directly on the decentralized and completely free.
LayerZero: This omnichannel protocol design enables interoperability with many decentralized applications on different blockchains.
StarShark: a gaming startup founded by Timi Studio Group. The StarShark project is famous for attracting more than 1 million active players every day just three months after launch.

How to invest in the Binance Labs investment fund?

With some of the above information, you can see that the investment fund has selected good projects with exceptional potential. To invest under the Binance Labs investment fund, users can use some of the following websites for information:

  • Binance Labs Official Twitter
  • Cypherhunter
  • Binance Search

Should users buy tokens on Binance’s invested list? The projects selected by the Binance Labs fund are all excellent projects with long-term growth potential. However, there is no guarantee that projects will be listed on Binance in the future.

Also, when investing under the Binance Labs fund, users should note a few things:

It invests in projects at a different price and position than regular investors. As a result, user returns are usually lower than Binance Labs’ funds. Therefore, users should not expect to earn the same return as the Binance Labs.
fund
The projects listed on Binance often increase in price. However, when and how much the price increases is something that investors do not know in advance. Therefore, investors are not sure if they are getting the expected profit.
Although Binance Labs has a certain level of credibility when investing in projects. However, users should carefully research that project objectively before investing capital.

Conclusion

The projects selected and supported by Binance Labs are potential long-term investment projects for several reasons as follows:

  • The entire Binance Smart Chain ecosystem supports participating projects
  • Assigned tasks have a chance to be listed on Binance and will likely increase in price in the future.
  • The ROI of projects invested by Binance Labs is usually huge.

However, investing under Binance Labs can offer investors a few more options when investing, but it’s not sure if you’re bringing the expected returns. Investing is always risky and investors must understand this principle in all their investment decisions.

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