Binance Labs, the investment side of the world’s largest and most popular digital exchange, has put $5 million into the new Curve DAO token that powers the Curve blockchain network.
Binance puts a lot of money on the curve
At the time of writing, Curve is valued at approximately $2.4 billion and witnesses a daily trading volume of over $215 million on its investment platform, which seeks to help fans of decentralized finance (defi ) to exchange assets at the lowest possible rates. The DAO also helps Curve stay in business by supporting its numerous ERC-20 tokens. It also powers the network’s governance participation, boost, and voting protocols.
Yi He, co-founder of Binance and director of Binance Labs, commented in an interview:
Curve's significant contributions as a leading protocol in the DeFi landscape have been instrumental in the sector's continued growth throughout 2023. [Considering] the recent challenges faced by the protocol, Binance Labs is extending its unwavering support to Curve, both in terms of investment and strategic collaboration. . . We see this partnership as a springboard to further drive the expansion of the DeFi ecosystem.
Michael Egorov, the founder of Curve, also weighed in, saying:
BNB Chain’s prominent position in the DeFi space makes it an ideal platform for Curve’s existing and future product offerings. We are excited about this joint effort to drive innovation and expansion across the DeFi spectrum.
All of this would be fine, except that Binance is currently under scrutiny from the Securities and Exchange Commission (SEC). Not long ago, the financial body filed a lawsuit against the crypto platform, claiming that it has not complied with securities laws in force since it became a reality. Furthermore, the agency said that Binance allegedly mixed the company’s funds with those of customers, suggesting that the company had taken a page from FTX’s playbook.
At this point, one wonders whether Binance should play with investment money in this way, given that the SEC will potentially try to make an example of the crypto exchange. With its size and vast financial power to its name, the SEC is unlikely to go easy on the company, according to a former special counsel to the agency, and spending money this way when the future remains uncertain may not be the best thing to do. to do. to do. . move to do.
Is this the best idea?
If the SEC gets its way and a decision is really tough on Binance, the company may need as much money as possible to stay afloat and function properly.
Curve also announced plans to extend its operations to BNB Chain, the official blockchain network of Binance. At press time, Curve operates as an automated market maker (AMM) in the sense that smart contracts are used to facilitate trading.