Colin Wu, a Chinese crypto journalist, and blogger has revealed that Binance has taken a new move in its expansion into the cryptocurrency industry. It picked a product whose popularity and demand skyrocketed as a result of the FTX crash.
Binance invests in wallet creator NGRAVE
Binance just published a blog post that gives some light on the aforementioned transaction. According to the blog post, Binance Labs is leading the upcoming Series A round for NGRAVE.
The purpose is to increase bitcoin self-custody and back up this specific wallet using an encrypted and recoverable key backup. NGRAVE’s CEO, who also co-founded the firm, argues that his company has avoided the restrictions of contemporary mnemonic crypto wallets, which are extensively utilized at the present. They will be made available to both retail and institutional crypto investors.
Binance Labs has made a strategic investment in hardware wallet maker NGRAVE and will lead its upcoming Series A round. Currently, the sales of hardware wallets are soaring due to the FTX crash. https://t.co/NaAtSfDPyL— Wu Blockchain (@WuBlockchain) November 21, 2022
Here’s why Binance received a warning in Singapore while FTX did not.
The Singapore Monetary Authority (MAS) has addressed the question of why it issued a warning to Binance last year but did not take comparable action against the now-bankrupt FTX behemoth.
According to the regulator, Binance was placed on the Investor Alert List (IAL) in September of last year, unlike FTX, since the former was aggressively promoting its goods to local investors, whilst FTX did not, and neither business has a license to operate in the nation.
Binance even went so far as to provide crypto coin trading against Singapore dollars, the local fiat currency.
Furthermore, in August 2021, MAS received many complaints against Binance for seeking investors in Singapore without a license. According to the MAS statement, there was no evidence of FTX doing the same. Furthermore, FTX trades were not made in local currency.
According to MAS, cryptocurrency and exchanges may collapse.
Finally, the regulatory authority stated that the lesson to be gained from the FTX issue is that any crypto exchange can fail, and any cryptocurrency operations are risky – regardless of platform.
Even if an exchange is well-managed, crypto assets are very volatile and can lose value quickly.