Binance’s venture arm is putting another $5 million into Ultiverse, only one week after leading a $4.5 million seed investment in the metaverse gaming business. In a blog post published on March 18, Binance Labs, the crypto exchange’s venture capital and incubator branch, revealed its inaugural investment in Ultiverse. The fund was co-led by DeFiance Capital, with participation from Three Arrows Capital and SkyVision Capital. The initial $4.5 million was raised by selling MXS, Ultiverse’s governance token.
According to both companies, Binance Labs has decided to invest an additional $5 million in Ultiverse’s shares. According to Nicole Zhang, head of Binance Labs, the additional investment was undertaken to guarantee the firms are linked in such a manner that we have some type of voice in terms of the team’s future course. Following the announcement of the inaugural seed round, Binance Labs indicated that the profits would be used to construct a social gaming metaverse with BNB Chain.
Zhang asserted that the BNB Chain ecosystem is the only one capable of sustaining gaming enterprises. He added that:
When you get really successful, you wreck the entire blockchain, “she warned of blockchain-based games.” We are now the only blockchain with that type of capability.
Zhang went on to say that Binance has firsthand knowledge of these capacity concerns. She cited BinaryX and Crypto Blades as examples of games that have garnered great interest and caused challenges for Binance’s blockchain in the past, and she stated that the crypto giant has recently added additional capacity to deal with similar circumstances.
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 play-to-earn features. It is scheduled to go live in the first quarter of 2023.