Binance Labs invests in Telegram mini app Blum

The Binance alumnus behind decentralized exchange Blum has announced that he has received financial backing from Binance Labs, the company’s venture capital arm.

On September 11, Blum announced that it had received investment from Binance Labs to launch the DEX, which has reached 60 million users since its launch in April.

A Blum spokesperson declined to provide details on the investment amount but confirmed that the deal includes a portion of Blum’s future token supply. Blum CEO and co-founder Gleb Kostarev added that the funds from Binance Labs will support trading infrastructure and development, according to a statement shared with crypto.news.

In March, Kostarev and other Binance alumni introduced Blum, a hybrid crypto exchange that combines centralized exchange systems with DEX capabilities to offer a revamped trading experience. Since then, Blum has launched a Telegram mini-app, though CMO and co-founder Vladimir Smerkis emphasized that the company is not building a web3 game.

Blum is the first ‘tap-to-earn’ Telegram mini-app to complement Binance Labs’ MVB incubation program… Unlike other popular ‘tap-to-earn’ projects, Blum is not a game, but an upcoming DEX exchange that leverages game mechanics to expand our audience.

Vladimir Smerkis, Blum CMO and co-founder

Users of Blum’s Telegram mini-app earn points by playing a clicking game, similar to other projects built on The Open Network (TON). Blum has also partnered with other TON-based startups by rewarding users in the recently concluded Dogs (DOGS) memecoin airdrop.

Binance Labs to Take Independent Venture After CZ

Founded in 2018, Binance Labs operated as the investment arm of the world’s largest CEX. That changed when the $10 billion venture arm spun off from its former parent in March.

Following regulatory turbulence at Binance, the investment firm became an independent company. Prosecutors from the U.S. Securities and Exchange Commission and the Department of Justice sued CEX for multiple violations, including securities fraud.

Former Binance CEO Changpeng Zhao has stepped down from the matter, stepping down from his leadership role and serving the final weeks of a four-month prison sentence at press time. The company has continued operating under new CEO Richard Teng, who has vowed to implement better compliance at crypto’s largest trading venue.

Teng also sought to rally support around company employee Tigran Gambaryan, who was detained by Nigerian authorities for allegedly aiding tax evasion and money laundering.