Binance cryptocurrency exchange has invested an undisclosed amount in cryptocurrency hedge fund Multicoin Capital. Other investors in Multicoin include Ribbit Capital, venture capital fund Union Square Ventures, venture capitalist Marc Andreessen, and former chief operating officer of PayPal Holdings Inc, David Sacks.
Multicoin Capital is a venture capital company that invests in crypto tokens and crypto startups and also gives investors regulated exposure to the blockchain industry. The partnership ensures that Binance has now become a partner of the hedge fund.
In a blogpost the Binance stated on the partnership:
Multicoin Capital was established in 2017 and has made more than 20 investments in early-stage funding for start-ups in sectors including blockchain and financial technology. In 2019, the firm raised its first funds, ending with a valuation of $75 million.
Binance CEO Changpeng Zhao remarked on the venture capital firm in a statement:
“Multicoin Capital has a strong track record and a unique knowledge of emerging assets that extend well beyond Bitcoin. They are the best at what they do, and we are glad to join them as limited partners. We look forward to working more closely together in the broader industry.”
Binance’s native BNB coin is on a wild swing lately. Last week, the cryptocurrency touched as the third most valuable cryptocurrency in the world.
A crypto analyst recently noted that the coin will soon touch the $500 mark. The cryptocurrency is currently trading at $250 at the time of writing.