Just one week after leading a $4.5 million seed investment for Ultimate, Binance’s venture arm is making another significant bet by investing an additional $5 million in the metaverse gaming startup.
Binance Labs, the venture capital and incubator unit of the crypto exchange, announced its initial investment in Ultiverse (MXS) in a blog post on March 18. DeFiance Capital also participated in the funding round, along with contributions from Three Arrows Capital and SkyVision Capital.
The fund was collaboratively managed by DeFiance Capital with involvement from Three Arrows Capital and SkyVision Capital. The initial $4.5 million investment took the form of the sale of Ultiverse’s management token MXS.
However, in a joint statement, both companies revealed that Binance Labs has decided to further invest $5 million in Ultiverse’s equity. This additional investment aims to establish a strong connection, providing the firms with a degree of influence over the future trajectory of the team, as explained by Binance Labs director Nicole Zhang to The Block.
“The only ecosystem that widely supports BNB Chain game projects”
Following the announcement of the first seed round, Binance Labs has revealed that the funds will be utilized to develop a social gaming metaverse using BNB Chain, Binance’s blockchain.
BNB Chain, introduced after the platform’s rebranding in February, is designed to cater to large-scale applications, particularly those offered by gaming and metaverse projects.
Zhang, Binance Labs director, emphasized that BNB Chain is currently the sole ecosystem capable of supporting game projects at scale.
He expressed that once a blockchain becomes highly popular, it can face capacity issues, and BNB Chain is uniquely equipped to handle such challenges.
Zhang referred to past experiences where games like BinaryX and Cryptoblades gained significant traction, causing strain on Binance’s blockchain.
He assured that Binance has addressed these capacity concerns by augmenting its capabilities, stating, “We are super ready now. We have the capacity.”
Ultiverse, led by CEO Frank Ma, has assembled a team of over 100 individuals actively working on the development of its games.
Their initial project, Endless Loop, is slated to be a 3D multiplayer online role-playing game (MMORPG) featuring play-to-win functionality. The game is scheduled for a full release in the first quarter of 2023
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