- Binance separates its $10 billion venture arm, Binance Labs, from the parent firm.
- Accordingly, Binance Labs staff now operate under separate contracts.
- Despite the split, Binance Labs continues leveraging the brand through licensing agreements.
Leading crypto exchange Binance quietly unraveled its $10 billion venture capital arm earlier this year, coming within four months of Richard Teng’s appointment as the new chief executive officer of Binance.
Binance Labs, the erstwhile venture capital division, has emerged as an autonomous entity, severing some ties with its parent group. Accordingly, Binance Labs staff now operate under separate contracts.
Binance Labs’ Investment Director Alex Odagiu has affirmed the detachment from the parent company in a statement to Bloomberg. “We’re not part of the Binance group,” Odagiu remarked.
Notably, the disclaimer note on the Binance Labs website emphasized that the venture operates independently and is not affiliated with the Binance Group. It is also not engaged in any of the businesses conducted by the Binance Group, including, but not limited to, the Binance crypto exchange.
Meanwhile, the detached venture capital arm will continue to leverage the Binance brand through licensing agreements. This move comes amid heightened scrutiny following Binance’s recent $4.3 billion penalty and leadership reshuffle.
Under the leadership of Yi He, a co-founder of Binance, Binance Labs emerged as a formidable force in the crypto investment landscape. To date, Binance Labs has invested in approximately 250 projects, including Sky Mavis, Aptos Labs, LayerZero, Polygon, and The Sandbox.
Binance Labs is an investor and incubator that runs multiple programs, including one dedicated to nurturing startups leveraging BNB Chain and other blockchains. According to the Bloomberg report, the Binance exchange’s profits largely bolstered Binance Labs’ operation.
Recent announcements from Binance Labs indicate that the total value of its assets, as reflected on paper, now exceeds $10 billion.
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