Binance Labs – the investment side of the world’s largest and most popular digital currency exchange – has placed $5 million into the new Curve DAO token that powers the Curve blockchain network.
Binance Puts a Lot of Dough into Curve
At the time of writing, Curve is valued at roughly $2.4 billion and witnesses a daily trading volume of more than $215 million on its investment platform, which seeks to help fans of decentralized finance (defi) trade assets for the lowest fees possible. DAO also helps Curve stay in business by supporting its many ERC-20 tokens. It also empowers the network’s staking, boosting, and governance voting protocols.
Yi He – the co-founder of Binance and the head 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 consistent growth throughout 2023. [Considering] recent challenges faced by the protocol, Binance Labs is extending its unwavering support to Curve, both in terms of investment and strategic collaboration. We envision this partnership as a steppingstone towards further bolstering the DeFi ecosystem’s expansion.
Michael Egorov – the founder of Curve – also threw his two cents into the mix, stating:
BNB Chain’s prominent standing in the DeFi arena makes it an ideal platform for Curve’s existing and upcoming product offerings. We are excited about this joint endeavor to drive innovation and expansion across the DeFi spectrum.
All this would be fine except Binance is currently under scrutiny from the Securities and Exchange Commission (SEC). Not long ago, the financial agency filed a lawsuit against the crypto platform, claiming it had been failing to follow present securities laws since it first came to fruition. Also, the agency said Binance had reportedly been commingling company funds with those of customers, suggesting the firm had taken a page out of the FTX playbook.
Right now, one must wonder if Binance should be playing around with investment money like this given the SEC is going to potentially be looking to make an example of the crypto exchange. With its size and large financial power to its name, the SEC isn’t likely to go easy on the company according to a former special counsel member of the agency, and throwing money around like this when the future remains unclear may not be the best move to make.
Is This the Best Idea?
Should the SEC get its way, and a ruling indeed comes down hard on Binance, the company may need as much money as possible to remain afloat and keep itself operating properly.
Curve has 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 that smart contracts are used to facilitate trading.
The post Binance Invests a Lot of Money into Curve’s Stable Asset appeared first on Live Bitcoin News.