01. Overview of Binance Labs
Founded in April 2018, Binance Labs is Binance’s internal venture capital business unit. Its main mission is to identify, invest and empower promising blockchain entrepreneurs, startups and communities. In addition to direct investments, Binance Labs also invests through an 8-10 week incubation program (MVB), providing advisory support, financing, and resources.
The Binance Incubation Program has been held for six seasons. In the latest season, Binance invested in 4 of the best-performing projects participating in the MVB in Season 6, namely AltLayer, KiloEx, Kinza and Sleepless AI, covering DeFi, infrastructure and Web3 games. .
In an interview with The Block in April this year, Binance Labs stated that their theoretical return on investment has reached more than 10 times, which is closely related to Binance Labs’ advantages and the theory of selecting projects.
Binance Labs Advantages:
- Global influence: Binance Labs’ investment landscape has covered 25 countries and invested in more than 200 projects.
- Financial support: According to Binance’s 2022 year-end report, Binance Labs will provide at least $1-2B in funding for the crypto industry.
- Value creation services: In addition to financial support, it also provides general consulting, operational support and technology/product joint development, etc.
- Rich resources: As part of the world’s largest cryptocurrency trading platform, Binance Labs has rich resources and a vast network, which are key factors in its ability to successfully incubate and invest in projects.
Binance Labs will consider the following five attributes when selecting projects:
- The first attribute is product innovation. Are you building something completely new that users will benefit from?
- The second attribute is a sustainable business and token model. Is your business model profitable in the long term and are your token incentives structured in the right way?
- The third attribute is traction. What is the number of users of the project at this current stage? How much revenue is generated? If you're in the pre-launch phase, we'll want to know what you can realistically expect.
- The fourth attribute is the quality and durability of the team. Would you and your co-founders be able to commit full-time to the project if the project required it?
- The last attribute is technology. Is the technology you are building feasible and realistic? We look at what you've built and what you can build against your project roadmap.
From the above, it can be seen that Binance Labs’ investment philosophy can be summarized into five attributes: product innovation, sustainable business and token model, adoption rate, team durability, and technical feasibility.
02. Binance Labs’ key investment track layout
Binance Labs’ investment layout is very broad, covering most tracks related to Web3, including public chains, protocols, infrastructure, NFT, chain games, Metaverse, DeFi and CeFi, etc. According to the 2022 year-end report, Binance Labs will provide at least $1-2B in funding for the crypto industry recovery plan.
Binance Labs pays special attention to areas such as infrastructure, on-chain applications, data analysis, and security. These areas are not only core to the development of the cryptocurrency industry, but also Binance Labs’ investment priorities. From the picture below, we can see the layout of Binance’s key investment tracks:
- Infrastructure: accounting for the largest proportion of Binance Labs’ investment territory, reaching 39.4%, as the cornerstone of the blockchain and cryptocurrency industry.
- DeFi and games: accounting for 19.4% and 18.2% of investment proportions respectively. These two areas not only have huge market potential, but are also at the forefront of industry innovation.
- Web3 related tracks: including social entertainment, tools, NFT, Metaverse, etc. These areas are considered to be the next growth point of the cryptocurrency industry.
03. Inventory of unissued currency projects
We will take stock of the projects in Binance’s investment landscape that are worthy of attention but have not yet issued coins from the four major sectors of infrastructure, Web3, DeFi, and games.
(Risk reminder: The following projects have not yet issued coins and have investments. The fundamentals of specific projects cannot be guaranteed. The risks of encryption projects are high. Users can use the following list as a reference for further DYOR.)
infrastructure:
1. Polyhedra: $25M in financing
Polyhedra is a full-stack infrastructure startup based on ZKP technology with a focus on interoperability, scalability, and privacy. Generate SNARK proofs faster through a distributed approach, and then develop zk full-stack projects (zkBridge, zk-DID, zk-NFT) based on this. The zkBridge test network has been launched, and airdrops are expected;
2、AltLayer
AltLayer is an open and decentralized protocol for developers to launch rollups customized for their applications.
The protocol provides a codeless Rollups-as-a-Service dashboard built on top of its core network Beacon Layer, allowing for rapid customization of fraud/zk-proof Rollups, gaining security from the underlying L1/L2. Received financing from Binance’s Season 6 MVB.
3、DappOS
DappOS is an intent-centric operating protocol designed to make dApps as user-friendly as mobile apps.
As a unified operating protocol for Web3, it builds a layer between users and encryption infrastructure such as public chains and cross-chain bridges, allowing users to complete verification and execution in the decentralized world by simply interacting with dappOS, allowing anyone to Decentralized applications can be easily accessed without complex processes or in-depth cryptographic knowledge.
4. Mind Network: Financing $2.5M
Mind Network is a composable data protocol that allows developers to interoperate data across platforms. Mind Network's vision is to become the first decentralized knowledge graph that intelligently connects everyone and products on Web3. Mind Network’s roadmap states that the token will be launched in the third quarter of 2023.
5. LayerZero: $315M in financing
LayerZero is a full-chain interoperability protocol focused on data messaging between chains. LayerZero's data transmission method based on oracles and relays makes the protocol more portable and has certain security performance. The current network adoption rate of the protocol is good, and airdrops are expected.
6. Celestia: raised $56.5M
Celestia is the first modular blockchain network. It advocates dividing the consensus, settlement, execution and other functions of a single public chain into different layer areas, and then improves performance by optimizing functional layer areas. It also allows specialized blockchain hosting applications to be implemented in Deployed on top of it, it is optimized for scalability, flexibility and interoperability.
7. Web3Go: $4M in financing
Web3Go is a data intelligence network that provides a suite of AI-native digital asset tools and real-time data infrastructure.
The network will enable users to produce a variety of artificial intelligence-native digital assets, including trading feeds, trading strategies, trading robots, entertainment, education and social intelligent assistants. Verify asset ownership through the blockchain, providing creators with a fair, self-hosted, trustless ecosystem.
Web3
1、Paragraph
Paragraph is an on-chain creator platform that helps creators publish, share and build businesses around their content, using permissionless protocols to enhance growth and profitability potential.
Paragraph is leveraging novel on-chain mechanisms such as enabling creators to turn posts into collectibles, send newsletters to wallet addresses, monetize recurring memberships, and leverage decentralized social protocols (e.g. Farcaster, Lens, XMTP) to build and cultivate their communities.
Not only did it receive investment from BInance Labs in October 2022, it also received investment from Base’s first ecological fund in September this year.
2. Tabi: Financing $10M
Tabi is a cross-chain NFT platform that provides NFT issuance, trading, auctions and customized in-store services. Designed to connect creators and users in a decentralized manner. It has been confirmed that airdrops will be carried out. Tabi will also convert users' on-chain activities into "experience points", which can be used to redeem future airdrop rewards and benefits.
3、Lifeform
Lifeform is a decentralized visual digital identity (DID) solution provider. Its core technologies include: ultra-realistic 3D avatar creation tools; visual DID protocols; secure and innovative contract solutions; Web3 native decentralized identity system; Metaverse Engine Software Development Kit (SDK), which has completed three rounds of Financing, the latest round of financing valuation reached 300 million;
4. Playbux: $2M in financing
Playbux is an e-commerce metaverse platform based on the blockchain network. The project was shortlisted for the Binance Labs Season 4 Incubation Program. Its products are designed to be an accessible Shop&Earn metaverse platform. Allows users to spend and earn cash back at over 20,000 merchants around the world.
game
1. Xterio: $55M in financing
Xterio is a global, cross-platform instant-to-play developer and publisher dedicated to empowering deeply engaging gaming worlds through digital ownership, connecting millions of people around the world. Xterio's focus is on developing a Web3 native universe that scales across all media and platforms.
2. Fusionist: raised $6.6M
Fusionist is a game world with collectible NFTs made up of 3 types of games, Colonization, Conquest, and Unity. Players will manage their own planet, collect rare resources, upgrade technology, scan blueprints to create mechas, and establish production lines. Fight through PvP and PvE battles, build a fleet of starships for interstellar warfare, and conquer the galaxy.
The founding team is composed of veterans from Tencent Games, Electronic Arts and Monton Games. Players participating in the test will be rewarded with token airdrops.
3. Ultimate: $4.5M in financing
Ultiverse is a social gaming metaverse that connects Web3 with immersive, fully VR-compatible virtual worlds of AAA quality. By empowering players with different financial capabilities to build mutually beneficial relationships, Ultiverse aims to create MetaFi with strong airdrop expectations.
4.Tatsumeeko: Funding $7.5M
Tatsumeeko is an MMORPG playable on Discord. It combines casual games, Japanese role-playing games, and creative building games with social elements and user-generated content to create a platform-agnostic, community-driven modern fantasy MMORPG-lite.
5. Heroes of Mavia: $5.5M in financing
Heroes of Mavia is an MMO strategy game that draws fantasy elements from the popular mobile strategy base-building game Clash of Clans.
Players build and develop their base, train armies, and battle other players on the island of Mavia. As players' bases and armies grow, they are able to attack more challenging opponents and earn tokens in return, which can be used to upgrade the base itself and create special super troops called heroes. Land NFTs issued, with airdrops expected.
6. Sleepless AI: Financing
It is a virtual companion game based on AI blockchain, using AIGC and LLM to create rich story-based gameplay and organic interaction with characters. The project is currently developing three games, the first of which is HIM.
DeFi
1. Helio: $10M in financing
Helio is an open source liquidity protocol for borrowing and earning on HAY - a new BNB backing, over-collateralization and a whole new crypto asset class called "destablecoins" (where "de" stands for decentralization). The Helio protocol is built on the BNB chain and consists of a dual-token model and mechanisms that support instant conversion, asset staking, lending, yield farming, and staking.
2、Bracket Labs
Bracket Labs has launched the Bracket Protocol options marketplace, designed to simplify traditional options and structured products, where buyers can trade multi-currency contracts. The innovation of this platform is that users can interact directly on the decentralized, permissionless, non-custodial platform without a margin account; there is no forced liquidation, and buyers always receive the full value of their claims, etc. Currently, BracketX is online on the Arbitrum testnet.
04. Summary
To sum up, Binance Labs, as the venture capital and incubation arm of Binance, the world’s largest cryptocurrency trading platform by trading volume, has become one of the indispensable players in the blockchain and cryptocurrency industry.
Its global reach, financial support, value creation services and abundant resources enable it to successfully incubate and invest in projects.
For users, the bear market can be said to be the best time to explore potential projects. There is not as much FOMO and TVL brought by fake APY as in the bull market. It is easier to screen out serious project parties. Players can track promising projects. Data growth to prepare for the bull market.
The above list of projects can be used as a research and cross-reference, but it must be noted that in the encryption market, projects that can truly meet user needs and come out are very rare. Most projects have higher risks than potential. Therefore, when participating in a project, you must do a good job in risk management and ensure the safety of funds.
