Binance’s $1b fund invests in crypto exchange firm

Binance’s US$1 billion Crypto Mass Adoption Fund has invested in crypto exchange MCDEX. Specific details of the deal were not disclosed.

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Founded in 2018, MCDEX is a decentralized exchange for perpetual swaps, which are derivatives without an expiration date allowing investors to buy and sell the value of cryptocurrencies without owning them. The exchange is live on the mainnet, an independent blockchain that has its own technology and protocol.

The company claims to run one of the largest trading and liquidity mining programs in the decentralized perpetual market on Binance Smart Chain (BSC), which supports smart contracts. Designed to shore up liquidity and attract traders, MCDEX is also one of the largest decentralized exchanges on BSC.

“We continue to prioritize delivering peak performance for perpetual traders on our decentralized exchange. This can only be achieved through a commitment to high capital efficiency, and BSC allows us to accomplish that,” said Jean Miao, co-founder of MCDEX,

The Crypto Mass Adoption Fund under BSC has allocated US$500 million for investments and supports four main initiatives. While US$300 million goes to its builder program, its liquidity incentives and talent development areas get US$100 million each.

“MCDEX has posted tremendous growth since its inception, under the US$1 billion fund we’re looking to support such projects that are capable of scaling for the upcoming wave of mass adoption,” said Alex Odagiu, investment manager at BSC Accelerator Fund.