Just one week after spearheading a $4.5 million seed investment for Ultimate, Binance’s venture arm is betting another $5 million on the metaverse gaming startup.
Binance Labs, the crypto exchange’s venture capital and incubator unit, announced their first investment in Ultiverse (MXS) in a blog post published on March 18. DeFiance Capital participated in the increase, which was also invested by Three Arrows Capital and SkyVision Capital. The fund was jointly managed by DeFiance Capital with participation from Three Arrows Capital and SkyVision Capital. This initial $4.5 million funding was made in the form of the sale of Ultiverse’s management token MXS.
However, according to the statement made by both companies, Binance Labs has decided to invest an additional $5 million in Ultiverse’s equity. This additional investment was made to ensure that the two firms are “connected in such a way that we have some sort of say over the future path of the team,” Binance Labs director Nicole Zhang told The Block.
“The only ecosystem that widely supports BNB Chain game projects”
Following the announcement of the first seed round, Binance Labs stated that the proceeds will be used to build a social gaming metaverse with BNB Chain. BNB Chain is Binance’s blockchain As KoinFinans previously reported, it is a network created for large-scale applications of the kind offered by gaming and metaverse projects after the platform rebranded in February. Zhang also claimed that BNB Chain is the only ecosystem that can support game projects at scale, and said the following about blockchain-based games:
“The moment you become really popular, you destroy the entire blockchain. We are currently the only blockchain with this kind of capacity.”
Zhang added that Binance has first-hand experience with these capacity issues. He pointed to BinaryX and Cryptoblades as examples of games that have gained significant traction and caused problems for Binance’s blockchain in the past, and said that the crypto giant has recently added extra capacity to deal with similar situations.
“We are super ready now. We have the capacity.”
Under the leadership of CEO Frank Ma, an entrepreneur, more than 100 people are currently working on Ultiverse’s games. The company’s first game, Endless Loop, will be a 3D multiplayer online role-playing game (MMORPG) with play-to-win functionality. The game is scheduled to be released in full in the first quarter of 2023.