Crypto giant Binance, currently the largest exchange in terms of volume, has been ramping up its investments in recent months. Despite all the challenges, Binance continues to invest in early-stage projects, with a focus on DeFi initiatives. So what are the details of the investment announced by the team today?
Binance-backed Altcoins
Projects that receive support from Binance during early stages or subsequent investment rounds can be listed on the exchange more easily. Binance Labs has made numerous investments through its platform, and we have already shared a comprehensive list of these projects. Today, the developers of the layer1 solution, Initia network, have delivered some exciting news.
Binance Labs provided undisclosed financial support to the protocol through an investment prior to the seed funding round.
Initia and Binance
Layer1 solutions operate on their own main networks and do not rely on verification on a different network like Ethereum or Cosmos. Examples of such networks include Ethereum, Solana, and Avalanche. While layer2 solutions have gained popularity in the past year, we have also witnessed the emergence of many layer1 projects.
A group of developers working on Initia announced today that they have received pre-seed investment from Binance Labs, the venture capital and incubation arm of Binance. This network will offer application-specific subnets through optimistic rollup technology.
Initia will use the Move programming language, just like Aptos. This language has been adopted by many other layer1 solutions, including Sui. The team stated in their announcement:
“It is exciting to be supported by Binance in the early stages to accelerate Initia’s growth. Initia aims to support an interconnected application ecosystem in collaboration with Binance Labs, while also protecting the economic interests of all L1/2 users and operators.”
The network is still in the testing phase and under development. The Initia developers also revealed plans for partnerships with other crypto leaders besides Binance Labs. It seems that Initia will rank high on the list of airdrop hunters.
Users who transact on the test networks before the mainnet launch will be rewarded with airdrops. Additionally, being a project backed by Binance, Initia Token will likely be listed on exchanges more easily in the future.
SUI and APT were born amidst bear markets for now. Perhaps Initia can perform better with the right timing.
