Binance Labs, the subsidiary of Binance, which manages the venture activities, announced today that they have established a $ 500 million Web3 venture fund with the support of many companies, especially DST Global and Breyer Capital.
Binance Labs announced that the venture fund will invest in companies operating in the Web3 space. On the other hand, last week, Andreessen Horowitz (a16z) announced that he has established a $ 4.5 billion fund to invest in crypto companies. Funds established during this period when crypto startups had difficulties in accessing capital while the crypto money markets continued their downward trend, became extremely important.
Binance Labs is looking to capitalize on the recent drop in crypto assets to find startups building the web3, which they see as the next big step in technology. The organization will consider using the fund as pre-seed, early-stage and growth capital, while investing in company shares as well as purchasing tokens.
Binance Labs has come to the fore with its investments in Sky Mavis, the company of Forbes and the popular NFT-based game Axie Infinity. Founded in 2018, the startup was also an investor in Singapore-based startup Terraform Labs, the parent company of the stablecoin project that collapsed in May.
Binance also plans to buy $500 million worth of Twitter shares to support Elon Musk's bid to buy Twitter last month. This investment, on the other hand, was interpreted as an attempt by the cryptocurrency exchange to bring together social media and Web3.
What is Web 3.0 and what does it do?
After the spread of Web 2.0, many internet giant brands and applications that we know began to be born. All brands you can think of, such as Google, Twitter, Facebook, YouTube, LinkedIn, have developed thanks to Web 2.0. Web 3.0 will allow for a decentralized connection without any intermediaries.
Applications called "app" in Web 2.0 are called "dapp" (Decentralized app) in Web 3.0. In other words, dapps working with wallet logic will be used instead of applications to browse the internet. Thus, only the producer will pay for the content produced, and the applications will not make any profit from it.