Binance plans to attract investment from sovereign wealth funds
Cryptocurrency exchange Binance is negotiating with several sovereign wealth funds to attract investments. In a conversation with the Financial Times, the company’s head, Changpeng Zhao, said that this would help withstand pressure from government regulators.
Since Binance is currently in a preliminary discussion stage, Zhao said it is too early to reveal the names of the funds involved in raising capital. “The amount of investment will be considerable. It will not be a quick process. “
Zhao recently announced at the Bloomberg New Economy Forum in Singapore that Binance’s daily transaction volume reached $ 170 billion. For comparison: two years ago the figure was $ 10-20 billion, four years ago about $ 300 million. The exchange is the largest in terms of trading volume at the moment. Zhao is one of the wealthiest people in the crypto world, with an estimated fortune of $ 8 billion as of January 2021.
According to the analytical service Coinmarketcap, Binance confidently leads among the exchanges in terms of the daily trading volume in the spot market. It is not only a classic cryptocurrency exchange.
It is a whole global crypto environment, including a spot and futures exchange, a platform for launching new tokens, a decentralized exchange, a venture fund, an incubator of new blockchain projects, its blockchain, and many other projects.
Token Launch Platform
Below you can see the Binance ecosystem.
Binance recently set up three new firms in Ireland.
After the Irish Independent first reported last month that the cryptocurrency exchange had expanded its presence in Ireland, Changpeng Zhao confirmed that the firm is considering Ireland as its headquarters.
“Historically, we have argued that we do not have a headquarters,” he said. “We are actually in the process of opening several headquarters in different parts of the world.”
Binance is registered in the Cayman Islands.
Binance is preparing for the upcoming IPO. According to various estimates, the company can be valued from 300 to 450 billion dollars. The IPO of a market leader like Binance will have a huge impact on the crypto industry, both in terms of regulation and integrating crypto into traditional finance.
Cryptocurrency exchanges are one of the most understandable subjects of the crypto economy in terms of a business model. They earn on commissions and additional services.
Our analysts have created the Exchange Tokens Index. In addition to the Binance exchange coin, there are other promising cryptocurrency exchange coins.