It has been reported that Plasm Network’s funding round is the first investment made using Binance Labs’ $10 million funds to support projects in the Polkadot ecosystem. Plasm is a leading parachain candidate on Polkadot supporting Ethereum and Layer-2 scaling solutions.
However, in December 2020, Binance Labs led a $12 million funding round for MATH, a multi-chain assets hub behind MathWallet. In August 2020, it made a strategic investment in decentralized streaming protocol Audius.
The report said that Binance Labs investment will enable Plasm Network to develop on-chain governance, build a bridge between the Polkadot and Ethereum networks, and accelerate research and development.
It’s not a competition, but a collaboration. @BinanceLabs led the Series A funding round for @Plasm_Network to a tune of $2.4 million. What will this mean for the @polkadot ecosystem? https://t.co/t9SxHSbcC3 — Cointelegraph (@Cointelegraph) February 10, 2021
Plasm also raised money from notable crypto-notables HashKey, LongHash, Digital Finance Group, and PAKA Ventures.
Wei Zhou, the head of Binance Labs, said:
“We have been very impressed by Plasm Network’s growth since its launch. The first parachain connected to the Rococo-V1 Parachains Testnet is one of the most promising parachain candidates for Polkadot mainnet. By investing and supporting Plasm, we are demonstrating our commitment to supporting the growth and development of [the] Polkadot ecosystem.”
Thus, Plasm recently won the first Polkadot testnet parachain slot by deploying the first-ever smart contract on Polkadot’s “Rococo” testnet.