Welcome to zero knowledge. A weekly newsletter breaking down where the top VCs are investing in web3/crypto.
Expect portfolio breakdowns (like this) every week and other crypto topics, insights, and updates everywhere in between.
Here we go 💪
Binance Labs is the venture and incubation arm of Binance, the world's largest crypto exchange processing $2 billion+ in daily volume. They are prolific investors that benefit from the ecosystems they've built to support founders and portfolio companies. Here are just a few of the reasons founders fight to get them on the cap table:
- Binance Launchpad is the exclusive token launch platform for entrepreneurs to bring the most transformative crypto projects to life.
- Binance Labs is an infrastructure impact fund and an initiative to incubate, invest in, and empower blockchain projects.
- Binance Research provides institutional-grade research reports, data-driven insights and analysis for investors in the crypto space.
- Binance Academy is an open-access learning hub, providing a one-stop shop for blockchain and crypto learning resources.
You get the idea. And their portfolio is proof that everything they're doing turns to gold 🥇
Here's what to expect below 👇
- Recent funding news from Binance.
- Binance's portfolio broken down by layer, blockchain, company type, and category.
- 🕵️♂️ The most interesting company in their portfolio.
- 💼 Entire Binance portfolio (in an Airtable sheet).
- 💰 Tokens available from Binance portfolio companies.
Recent funding news from Binance Labs
1. Binance’s Luna investment was worth $1.6 billion. Now, it’s less than $3,000 🤯
- In 2018, Binance put $3 million into Luna and received 15 million tokens in return. At Luna’s price peak in April, those tokens were worth $1.6 billion, Binance’s CEO Changpeng Zhao said in a Monday tweet. At Luna’s price now, the tokens are worth about $2,391.
- But despite Binance’s big losses, Zhao (Binance's CEO) said he still wants retail traders who lost money during Luna’s crash last week to be reimbursed before Binance is 🙏
- *Binance has since denied investing in Luna's round.
2. Binance to invest $500m in Twitter (equity 💵)
- Binance’s move to participate in Elon Musk’s $44 billion takeover of Twitter could boost digital currency evangelists’ hopes for the development of a more “decentralized,” crypto-friendly social media platform.
Below is a thematic view of Binance's investments by:
- Category (ex: infrastructure vs. finance companies)
- Company type (ex: payments vs. NFTs and digital ownership companies)
- Layer (ex: L1 vs. L2)
- Blockchain (ex: Eth vs. Solana)
#1 Investments by category
#2 Investments by company type
#3 Investments by layer
#4 Investments by blockchain
Most interesting portfolio company 📈
- Elevator ⚡️: Solv Protocol is the first and largest decentralized marketplace for creating, trading, and managing financial NFTs–NFTs that represent financial rights.
- What is a financial NFT? Generally speaking, they are NFTs used in financial scenarios.
- Why is this needed 🌎? The need for financial NFTs comes from the limited capabilities of both ERC20 tokens and ERC721 (NFTs) when used by themselves. By combining the power of tokens and NFTs, Defi protocols can implement complex functionalities for advanced financial instruments. They get all the benefits of liquidity and utility from the tokens and customization and composability from the NFTs.
- Active examples of financial NFTs🕵️♂️: Lending project 88mph uses NFT to implement fixed-interest rate lending, insurance project Armor Finance uses NFT as its insurance token for coverage, the fractional ownership platform NIFTEX is doing NFT financialization by using ERC-20, and the best-known exploration of Financial NFT is the LP token of Uniswap v3.
- Getting technical: Solv Protocol provides Financial NFTs with a brand-new token standard ERC-3525 as an infrastructure-level solution - an enhancement of ERC721 to simplify the implementation and programming of advanced financial products. Compatible with the ERC721 standard, Financial NFTs can reuse the infrastructures of NFTs. Combined with the advantages of the ERC20 standard, Financial NFTs inherit quantitative attributes from ERC20 as fungibles.
- Key insight 🕵️♂️: Financial NFTs lock up digital assets that can be tradable in whole or fragments on the Solv Marketplace. As an early-stage investor in a token project, the allocation of tokens you're buying via the investment represents a right to withdraw the tokens in the future. Meaning a large majority of those tokens are locked up and untouchable for some period of time. This limits your liquidity and doesn't allow you to respond to market opportunities. Solv gives investors added liquidity options in a contractual and secure manner.
Individual portfolio company data
Tokens available from Binance backed companies
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