Binance Labs, the venture capital arm of crypto giant Binance, has announced an investment in Blum, a decentralized exchange (DEX) accessible as a Telegram mini-app.
Key Points:
- Blum, with 60 million users since its April launch, is the first “tap-to-earn” Telegram app to benefit from Binance Labs’ MVB incubation program.
- The investment amount remains undisclosed, but includes a share of Blum’s future token supply.
- Funds will be used to bolster Blum’s trading infrastructure and development.
Blum’s Hybrid Approach:
- Launched in March, Blum combines elements of centralized and decentralized exchanges, aiming to provide a user-friendly trading experience.
- While featuring a Telegram mini-app, Blum clarifies it’s not a web3 game, but a DEX leveraging gamification to attract users.
Blum’s User Engagement:
- Blum’s Telegram mini-app incentivizes users through a clicker-style game, similar to projects built on The Open Network (TON).
- Partnerships with TON initiatives include rewarding users with DOGs memecoin airdrops.
Contextualizing Binance Labs’ Move:
- This investment marks Binance Labs’ activity after distancing itself from Binance in March 2024.
- The separation came amidst regulatory challenges faced by Binance, including accusations of securities fraud.
Binance’s Leadership Changes:
- Following these controversies, former CEO Changpeng Zhao stepped down and is currently serving the final weeks of a four-month prison sentence at the time of writing.
- Richard Teng has taken over as CEO, focusing on stricter compliance measures within Binance.
Overall, Binance Labs’ investment in Blum highlights its independent operations and support for innovative crypto projects. Blum’s unique approach of merging DEX features with gamified user engagement could be an interesting development to watch in the crypto space.
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