In a new development, the venture capital arm of the world’s largest crypto exchange, Binance Labs, has made a foray into Web3 technology. He recently revealed plans to lead a funding round for GoPlus Security, a Web3 security startup. However, Binance Labs has yet to reveal the value of the funding round.

The crypto market has been struggling with the ongoing crypto winter, with the crash of one of the major crypto exchanges, FTX, intensifying the market decline. The prices of most crypto assets have plummeted since the implosion of the crypto exchange.

Additionally, several crypto firms and venture investors in FTX have recorded losses. The contagion of insolvency has spread like wildfire. Some companies have stopped withdrawals and other services on their platform. However, most investors still have some confidence in the crypto space, especially with the development of Web3.

Binance Labs Supports GoPlus Security Service

An official Binance blog post revealed other details about the funding. According to the post, GoPlus Security planned to direct the fund generated to launch a security marketplace. Likewise, it will carry out a new contracting process for the Web3 security infrastructure provider.

GoPlus Security is a Web3 security project that covers up to 13 chains of various blockchains. It offers multidimensional risk detection that makes it easy to build a more secure Web3 environment.

This new support from Binance Labs comes just a few days after the Binance CEO’s announcement of its increased reserves. According to CEO Changpeng Zhao, the cryptocurrency exchange plans to increase its reserves for acquisitions and investments to $1 billion.

Binance CEO Changpeng Zhao

Reason to support the security service provider

Binance co-founder and director of Binance Labs Yi He reacted to the new move. He recognized the fundamental importance of security to the growing Web3 ecosystem and community.

According to Yi, Binance Labs aims for a sustainable and positive impact of security services for end users. This plan formed the basis of his support for a client-focused project like GoPlus Security.

A recent estimate of Binance’s many support programs shows that the company has raised more than $325 million for more than 67 projects so far this year. However, a comparison of their commitments last year indicated lower participation despite the more bullish trend of 2021 in the crypto market. The firm spent about $140 million on 73 projects last year.

Binance Labs successfully raised $500 million in funding earlier in the year. Their goal is to use the fund generated to support the most successful Web3 projects and start-ups with great potential in their fields.