Exclusive: Binance considers obtaining government fund investment and protection at a valuation of $200 billion

Wu said author | Colin Wu

Editor of this issue | Colin Wu

Multiple sources told Wu Blockchain that Binance Global is considering attracting investments from sovereign funds controlled by governments in places such as Singapore at a valuation of $200 billion to $300 billion in exchange for better protection. Binance did not respond to this.

Although investors such as Ke Yin Capital and Chen Weixing invested in equity at very low prices in the early stage, the actual equity and control of Binance is in the hands of founder Zhao Changpeng and co-founder He Yi. Wu said blockchain learned that Zhao Changpeng and He Yi hold 92% and 8% of the equity respectively. Previously, the Times also disclosed that Zhao Changpeng's equity in Binance US exceeded 90%.

Currently, Binance has become the focus of regulatory authorities in various countries due to its status as the world's largest exchange. In recent months, it has been warned by financial regulatory authorities in more than 10 countries. Binance announced that it would switch from passive compliance to active compliance, requiring all users to undergo KYC and reducing the maximum leverage ratio from 125x to 20x.

Currently, Binance’s founder and main team are located in Singapore. Previously, Binance Singapore (not Binance Global) received investment from Vertex Ventures, a subsidiary of Singapore’s sovereign wealth fund Temasek. It is “natural” for Binance Global to continue to receive investment from relevant government funds in Singapore.

On August 23, Binance Singapore announced the appointment of Richard Teng, former chief regulatory officer of the Singapore Exchange (SGX), as CEO. Prior to joining SGX, Teng served as director of corporate finance at the Monetary Authority of Singapore (MAS) for 13 years. According to his LinkedIn profile, he took the lead in formulating and managing Singapore's securities and futures laws.

After rejecting Sequoia Capital’s investment, Zhao Changpeng made it clear that Binance did not need external funding and he was only interested in working with venture capital firms that could help the exchange work with regulators and obtain operating licenses.

Binance US is also raising funds. According to TheBlock, Brian Brooks, CEO of Binance US, who announced his resignation in early August, tweeted that the "strategic direction differences" included the failure to raise $100 million from venture capital, mainly due to regulatory factors, which made it difficult for American investors to have confidence. However, Binance US is still trying to raise $100 million, which may be completed as early as next month. At the same time, Binance CEO Zhao Changpeng confirmed that Binance US plans to complete the listing, but the specific time has not been determined.

According to the calculation of BNB destruction, Binance's profit in the second quarter was about 1.95 billion US dollars, and the profit in the first quarter may be close to 3 billion US dollars. Coinbase's profit in the first quarter was about 800 million US dollars, and the profit in the second quarter was 1.6 billion US dollars. The current market value is 54.2 billion US dollars. Therefore, Binance's valuation of 200 to 300 billion US dollars may be within the normal range.

Analysts pointed out that in addition to Singapore, which is the most likely option for Binance to attract investment, Dubai and other places are also possible options. In addition, regional exchanges in various parts of Binance may also cooperate with local VCs that "can help cooperate with regulators" for investment.

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