Binance has now mobilized almost 25% of its Polkadot ecosystem fund to spearhead Plasm Network’s Series A funding round. Reports emerged that Binance Labs led a $2.4 million Series A funding round for Polkadot-based smart contract platform, Plasm Network.
Plasm Network’s funding round is the first investment that was made using Binance Labs’ $10 million in funding to support various projects operating in the Polkadot ecosystem. Plasm is a leading parachain candidate on Polkadot supporting Ethereum and Layer-2 scaling solutions.
The Binance crypto exchange launched a venture capital and incubator arm and referred to it as Binance Labs. Sometime in December 2021, Binance Labs was reported to lead a $12 million funding round for MATH which is a multi-chain assets hub behind the MathWallet. In August 2021, it also made a strategic investment in decentralized streaming protocol Audius.
Binance Labs investment is expected to enable Plasm Network to develop on-chain governance, according to the announcement. The on-chain governance will create a bridge between the Ethereum and Polkadot networks, in turn, accelerating research and development.
Plasm also acquired money from other crypto-notables, including Digital Finance Group, HashKey, PAKA Ventures, and LongHash.
Notably, Polkadot is a high-throughput blockchain network that implements a multi-chain approach to get greater scalability than the networks developed on top of just one blockchain.
The head of Binance Labs, Wei Zhou, praised the network for its recent significant achievements, saying:
“We have been very impressed by Plasm Network’s growth since its launch. The first parachain connected to the Rococo-V1 Parachains Testnet is one of the most promising parachain candidates for Polkadot mainnet. By investing and supporting Plasm, we are demonstrating our commitment to supporting the growth and development of [the] Polkadot ecosystem.”
Plasm recently won the first Polkadot testnet parachain slot after it deployed the first-ever smart contract on Polkadot’s ‘Rococo’ testnet.
Analysts believe that the news probably supported Polkadot’s native token, DOT, which had reached an all-time high of about$23.90 at the time of publishing after gaining about 20% within 24 hours.