Binance Labs Investment in SocialFi CyberConnect Propels Token Over 30%
Web3 social platform, CyberConnect, records a soaring 31.2% growth in the last 24 hours after Binance Labs announced an investment into the firm.
The venture capital division of the largest cryptocurrency exchange by volume, Binance Labs revealed on X (Twitter) that it made a follow-on investment into CyberConnect citing market utilities for the web3 social space.
“We have made a follow-on investment round in @CyberConnectHQ, a decentralized social network.
We see SocialFi’s potential in propelling Web3 into the mainstream, and we’ll be hosting an AMA to dive into the opportunities for social integrations across the ecosystem. Stay tuned!”
Hours after the announcement, the probe of CYBER, the platform’s native token began an uphill climb, soaring 31.2% to trade at $6.35.
Binance’s decision to invest in the platform was borne out of the growing popularity of the niche around the blockchain ecosystem.
Web3 social platforms take the traditional social networking platform to new levels leveraging community development mechanisms and peer-to-peer reward systems.
CyberConnect boasts of a network built for developers to create social applications to give users full control of their data and privacy.
Users have criticized the lack of privacy on most web2 social platforms spurring a rise in community-knitted platforms that generate content and work without the control of a centralized entity.
Binance expands web3 investment
Binance Labs is known for its huge funding and expert support to multiple web3 startups to build decentralized applications with fundamental use cases and to solve problems in the ecosystem.
📈 Binance Labs Fuels Helio Protocol's Liquid Staking Pivot with $10M Investment in LSDfi Expansion
— Cryptonews.com (@cryptonews) August 13, 2023
The firm portfolio has grown to a $9 billion investment fund despite the huge collapses of Terra and FTX that rocked the market last year.
This year, the company has invested in Altlayer, Kinza, and KiloEx including a $15 million investment in web3 gaining platform Xterio.
Wider market flips green
Although Binance Labs Fund investment was crucial to the rise of the asset, many observers have argued that much of the rise came from the effect of a general market upturn.
Market leader Bitcoin (BTC) rallied to a 16-month high above $35,000 with altcoins like Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Ripple (XRP) notching similar growth.
The wider crypto market recorded bullish sentiments on the heels of a potential spot Bitcoin ETC approval by the United States Securities and Exchange Commission (SEC).
Several firms have predicted a renewed liquidity cycle in the market, a fresh capital sparking the next bull run should an ETF get approval.
💫 Galaxy Digital Projects Bitcoin Price to Reach Near $60,000 Year After Spot ETF Approval
— Cryptonews.com (@cryptonews) October 25, 2023