Binance Labs Defies Crypto Winter and Tough Regulatory Climate, Increases Assets to $9 Billion

By 0xK2 On May 12, 2023

Binance Labs has announced a remarkable increase in its asset holdings, despite the ongoing bearish market conditions in the crypto world. In the first quarter of 2023, the company’s assets grew to $9 billion, up from $7.5 billion the previous year.

Binance Labs has been steadfast in its commitment to investing in the Web3 ecosystem, as shared with CoinDesk. The company remains optimistic about the potential of blockchain technology beyond its current function as a financial tool. Yibo Ling, Binance Labs’ Director of Business Development, emphasized the company’s long-term investment strategy and commitment to sustainability in the industry.

“We are long-term investors. We don’t use short-term strategies but set sustainable goals for this industry,” Ling stated in an interview with CoinDesk. Despite the challenging regulatory landscape and the ongoing crypto winter, Binance Labs continues to seek out promising investment opportunities.

Binance Labs has invested in over 200 companies from 25 different countries, including 50 projects nurtured through Binance’s incubation programs. The VC focuses on all investment stages, but prioritizes early-stage companies such as seed and Series A. Additionally, Binance Labs is gradually allocating its $500 million investment fund, which was established last summer with support from DST Global, Breyer Capital, and other big names. This marks the first time the company has raised investment funds externally.

Ling also pointed out that infrastructure and decentralized finance (DeFi) projects have remained resilient during the current bear market. DeFi projects, in particular, have the potential to help users easily transition from Web2 to Web3.

While Binance Labs’ success is impressive, it is worth noting that the parent company, Binance, is currently facing scrutiny from U.S. authorities, and has been the subject of a lawsuit filed by the Commodity Futures Trading Commission (CFTC) last quarter. This has led to some big players, such as Coinbase and Bittrex, pulling out of the U.S. market. Nonetheless, Binance Labs remains undeterred and focused on long-term growth in the Web3 ecosystem.

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