The world’s largest exchange, Binance, announced an investment that seems rather strange. This was especially so because it can pull users away from the platform.
Binance Labs, the chain-agnostic incubator and venture capital arm of Binance, revealed a strategic investment in hardware wallet maker NGRAVE. Furthermore, the investment appears to be an attempt to capitalize on renewed demands for self-storage in the industry.
Greater push for self-care
Recent developments in the crypto market have led to distrust of centralized exchanges. The crypto community has been trying to wrap their heads around the demise of FTX. This has surely left several crypto firms struggling in its wake.
The suspension of withdrawals on several exchanges and crypto-lending platforms, including BlockFi and Genesis, has given centralized platforms a bad rep. “Not your keys, not your crypto” was a phrase that first became popular during Celsius Network’s bankruptcy proceedings. This basically meant that ownership of cryptos was essentially taken away when an investor transfers them to a centralized exchange.
This sentiment witnessed a dramatic confirmation after FTX’s collapse, which led to liquidity problems for several other crypto firms. Retail investors who fell victim to sudden withdrawal suspensions are targeting cold storage for their crypto. These include hardware wallets, especially in light of recent events.
NGRAVE’s deal with Binance
NGRAVE is a Belgium-based blockchain and digital asset security provider that offers hardware wallets for crypto holders. according to blog posts of Binance, the exchange will lead the wallet maker’s Series A funding round. The exact investment amount has not been made public. Yi He, co-founder of Binance and head of Binance Labs, said:
“Self-deposit wallets are one of the most secure methods of storing digital assets, and through our investment in NGRAVE, we want to continue to support innovative startups that improve user security.”
Binance CEO Changpeng Zhao chimed in Twitter earlier this month to share his thoughts on the renewed calls for self-storage following the turmoil caused by FTX. He said,
“Self-care is a basic human right. You are free to do so at any time. Just make sure you do it right.”
Self-responsibility is a basic human right.
You are free to do so at any time.
Just make sure you do it right.
Recommend starting with small amounts to learn the technology/tools first.
Mistakes here can be very costly.
— CZ 🔶 Binance (@cz_binance) 13 November 2022
With the NGRAVE agreement, Zhao’s firm is now ready with a “right way” for its users to access cold storage for their crypto.
CZ joins Buterin’s vision for secure CEX
Ethereum co-founder Vitalik Buterin shared a vision for a secure centralized exchange (CEX) on twitter last week. This will contain cryptographic proof of chain funds, in addition to proof of solvency. Changpeng Zhao responded to Buterin’s tweet, indicating that he was working on the idea.
Vitalik’s new ideas. Working with this.
Just don’t read the title out loud around people (Vitalik wrote it).https://t.co/AtR6KiSx5B
— CZ 🔶 Binance (@cz_binance) 19 November 2022