Binance alumni behind decentralized exchange Blum disclosed financial backing from Binance Labs, the company’s venture capital arm.
On Sept. 11, Blum announced an investment from Binance Labs designed to bootstrap the DEX, which has amassed 60 million users since launching in April.
A Blum spokesperson declined to provide details on the investment amount but confirmed that the deal included a share of Blum’s future token supply. Blum CEO and co-founder Gleb Kostarev added that the funds from Binance Labs would support trading infrastructure and development, according to a statement shared with crypto.news.
@BinanceLabs has invested in @blumcrypto. Congrats to Blum community! 🎉
— Gleb Kostarev (@gleb_crypto) September 11, 2024
Back in March, Kostarev and other Binance alumni unveiled Blum, a hybrid crypto exchange that merges centralized exchange systems with DEX facilities to deliver a revamped trading experience. Since then, Blum has launched a Telegram mini-app, although CMO and co-founder Vladimir Smerkis emphasized that the company wasn’t building a web3 game.
Blum is the first ‘tap-to-earn’ Telegram mini-app to complete Binance Labs’ MVB incubation program… Unlike other popular ‘tap-to-earn’ projects, Blum isn’t a game but an upcoming DEX exchange that leverages game mechanics to expand our audience.
Vladimir Smerkis, Blum CMO and co-founder
Blum’s Telegram mini-app users earn points by playing a clicker game, similar to other projects building on The Open Network (TON). Blum also partnered with other TON-based initiatives, rewarding users in the recently concluded Dogs (DOGS) memecoin airdrop.
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Binance Labs on an independent foray after CZ
Established in 2018, Binance Labs operated as the investment department for the largest CEX in the world. This changed in March when the $10 billion venture arm distanced itself from its former parent entity.
Following regulatory turbulence at Binance, the investment firm became a standalone company. U.S. Securities and Exchange Commission and Justice Department prosecutors sued the CEX for multiple violations, including securities fraud.
Former Binance CEO Changpeng Zhao was embroiled in the matter, stepped down from his leadership role, and served the final weeks of a four-month prison at press time. The company has continued operations under new CEO Richard Teng, who has pledged to implement better compliance at crypto’s biggest trading venue.
Teng has also tried to rally support around Tigran Gambaryan, a company employee detained by Nigerian authorities for allegedly aiding tax evasion and money laundering.
Read more: Beyond Binance: Zhao’s pivot to education amid DOJ plea deal