Alumni of Binance have launched the decentralized exchange Blum, which has secured funding from Binance Labs, the venture capital sector of the company.
On September 11, Blum revealed that it received an investment from Binance Labs to aid in the development of the DEX, which has gained 60 million users since its debut in April.
A representative from Blum did not disclose the specific amount of the investment but confirmed that the agreement includes a portion of Blum’s future token inventory. Blum’s CEO and co-founder Gleb Kostarev stated that the resources from Binance Labs would enhance trading infrastructure and development, according to a statement provided to crypto.news.
In March, Kostarev and other former Binance team members introduced Blum, a hybrid cryptocurrency exchange that combines centralized exchange technologies with DEX capabilities to offer an enhanced trading experience. Since then, Blum has also launched a mini-app on Telegram; however, CMO and co-founder Vladimir Smerkis clarified that the venture is not focused on creating a web3 game.
Blum is the first ‘tap-to-earn’ mini-app on Telegram to successfully complete Binance Labs’ MVB incubation program… In contrast to other popular ‘tap-to-earn’ projects, Blum is not a game but an upcoming DEX exchange that utilizes game elements to broaden our audience.
Vladimir Smerkis, Blum CMO and co-founder
Users of Blum’s Telegram mini-app can earn points by engaging in a clicker game, akin to other projects utilizing The Open Network (TON). Blum has also collaborated with other initiatives built on TON, rewarding participants in the recent Dogs (DOGS) memecoin airdrop.
Binance Labs takes an independent path post-CZ
Founded in 2018, Binance Labs served as the investment division for the largest centralized exchange globally. This situation shifted in March when the $10 billion venture arm separated itself from Binance.
Amid regulatory challenges faced by Binance, the investment firm transitioned into an independent entity. The U.S. Securities and Exchange Commission and the Department of Justice initiated lawsuits against the CEX for several infractions, including securities fraud.
Former Binance CEO Changpeng Zhao was implicated in the issues, stepped down from his position, and was in the closing weeks of a four-month prison sentence at the time of this report. The company continues to function under new CEO Richard Teng, who has committed to enhancing compliance measures at the industry’s leading trading platform.
Teng has also sought to gather support for Tigran Gambaryan, an employee of the company who has been detained by Nigerian authorities on charges related to tax evasion and money laundering.
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