Web3 social platform CyberConnect has experienced a remarkable 31.2% surge in the span of 24 hours after Binance Labs, the venture capital division of the leading cryptocurrency exchange Binance, announced its investment in the company. This investment was acknowledged on Twitter, as Binance Labs revealed its follow-on investment into CyberConnect, citing the market utilities offered by the web3 social space.
Growing Popularity of Web3 Social Platforms
The announcement by Binance Labs had an immediate impact on CyberConnect’s native token, CYBER, which skyrocketed by 31.2% and reached a trading value of $6.35. Binance’s decision to invest in CyberConnect was driven by the increasing popularity of web3 social platforms within the blockchain ecosystem.
Web3 social platforms are revolutionizing traditional social networking by integrating community development mechanisms and peer-to-peer reward systems. CyberConnect has built a robust network that allows developers to create social applications, offering users complete control over their data and privacy. This stands in contrast to web2 social platforms, which have faced criticism for their lack of privacy and control by centralized entities.
Binance Labs’ Commitment to Web3 Startups
Binance Labs, known for its substantial funding and expert support for various web3 startups, aims to develop decentralized applications with fundamental use cases that address ecosystem challenges. Despite the market turbulence caused by the collapses of Terra and FTX last year, the firm’s investment portfolio has grown to a remarkable $9 billion. In 2021, Binance Labs has invested in Altlayer, Kinza, KiloEx, and allocated $15 million to Xterio, a platform focused on facilitating web3 adoption.
While Binance Labs’ investment was undoubtedly influential in CyberConnect’s rise, some observers argue that the surge was largely connected to the overall market upturn. Market leader Bitcoin (BTC) reached a 16-month high above $35,000, accompanied by similar growth seen in altcoins such as Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Ripple (XRP). The wider crypto market experienced bullish sentiments due to the potential approval of a spot Bitcoin ETC by the United States Securities and Exchange Commission (SEC). Numerous firms anticipate a renewed liquidity cycle, with fresh capital potentially sparking the next bull run if an ETF receives approval.
