Binance’s venture arm is putting another $5 million on Ultiverse, just a week after leading a $4.5 million seed investment in the metaverse game business.
In a blog post published on March 18, Binance Labs, the crypto exchange’s venture capital and incubator branch, revealed its initial investment in Ultiverse.
The round was co-led by DeFiance Capital, with participation from Three Arrows Capital and SkyVision Capital. The first $4.5 million was raised through the sale of Ultiverse’s governance token, MXS.
However, according to both organizations, Binance Labs has decided to invest another $5 million in Ultiverse’s shares.
The additional investment was made to guarantee the firms are “connected in a way that we have some sort of voice in terms of the team’s future course,” according to Nicole Zhang, director at Binance Labs.
Binance Labs indicated after the initial seed round that the funds would be used to construct a social gaming metaverse with BNB Chain.
Binance’s blockchain, or BNB Chain, is a network developed for the kinds of large-scale applications offered by gaming and metaverse projects, following a rebrand in February.
Indeed, according to Zhang, BNB Chain is the only ecosystem capable of supporting large-scale gaming operations.
“You crash the entire blockchain the moment you get incredibly successful,” she remarked of blockchain-based games. “At the moment, we’re the only blockchain with that kind of capability.”
Binance, according to Zhang, has firsthand experience with capacity concerns. She cited BinaryX and Cryptoblades as examples of games that have garnered a lot of interest and caused problems for Binance’s blockchain in the past, and she said that the crypto giant has recently added more capacity to deal with similar circumstances.
“At this point, we’re completely prepared. “We have the resources,” Zhang stated.
Under the leadership of CEO Frank Ma, an entrepreneur, more than 100 employees are now working on Ultiverse’s games.
Endless Loop, the company’s debut game, will be a 3D massively multiplayer online role-playing game (MMORPG) featuring a play-to-earn feature. It will be fully operational in the first quarter of 2023.
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