Binance Labs Claims to Be ‘Unaware’ of Leading $15M SkyArk Chronicles Fundraise
Binance Labs has refuted claims of its involvement in the latest investment round of SkyArk Chronicles’ gaming platform.
The venture capital arm of the Binance crypto exchange issued a statement on Monday, clarifying that it did not partake in SkyArk Chronicles’ $15 million funding.
However, Binance Labs noted that it served as a strategic partner for the gaming platform during its incubation on its platform in 2021.
SkyArk Chronicles is a project incubated and invested in by Binance Labs in 2021 through Incubation Season 3; please note that Binance Labs did not participate in the project's latest financing round this year. Thank you all for your attention.
SkyArk Chronicles 是 Binance… pic.twitter.com/wqu2PBxKGE
— Binance Labs Fund (@BinanceLabs) January 29, 2024
Providing further details, the investment wing of the crypto exchange explained that it was unaware of the $15 million investment or the claim that it led the funding round before the blockchain multiverse project made the announcement.
Upon being notified of the situation, the team promptly contacted SkyArk Chronicles to rectify the misrepresented details surrounding the fundraising event.
However, the SkyArk Chronicles team only deleted the January 12, 2024 announcement without offering the necessary clarifications to its project community.
Over the past few years, Binance Labs has invested in hundreds of projects. As an investment firm, we always do our best to support the projects we invest in. Naturally, every investment firm hopes that their portfolio projects will develop well.
1) Under normal circumstances,… pic.twitter.com/CHRCHKdmbP
— Binance Labs Fund (@BinanceLabs) January 29, 2024
To substantiate its claims, the Binance Labs team shared screenshots of their conversation with the gaming platform, emphasizing that they became aware of the situation only after its users reached out.
Binance Labs also stated that its decision is based on the premise of ‘unilateral clarification,’ a principle it believes should be foundational for all collaborations within the rapidly growing Web3 ecosystem.
Binance’s Regulatory Run-in, Key Player Going Forward
SkyArk Chronicles is a triple-A blockchain gaming platform that immerses players in a multiverse created by the pseudonymous in-game god Satoshi Nakamoto.
Established in 2021, the Web3 gaming platform earned recognition by securing a spot in Binance Labs’ Incubation Program for Season 3, and it has continued to thrive since its inception.
As detailed in a now-deleted post on X from January 12, 2024, the Binance Labs team purportedly spearheaded the platform’s $15 million investment round, which drew participation from over 40 venture capital arms, including prominent names like BreedersDAO, LayerZero, Tangent Ventures, among others.
While Binance Labs has clarified its position on the matter, the other mentioned investors have remained silent.
On its end, SkyArk Chronicles has addressed the issue transparently in a post on X, expressing regret for the ‘miscommunication’ and acknowledging the subsequent clarification by the investment arm.
We are very sorry for the miscommunication and appreciate the clarification from Binance Labs.
We remain focused on making SkyArk a success and will continue working hard to achieve our vision.
https://t.co/2ZbgCPXfLK
— SkyArk Chronicles (@SkyarkS) January 29, 2024
Meanwhile, Binance exchange is on a path to recovery following a tumultuous end to 2023.
In a surprising development from the US Department of Justice (DoJ), the crypto exchange faced criminal charges, including fraud, money laundering, and violations of the Bank Secrecy Act (BSA).
The investigation, which involved the Commodity Futures Trading Commission (CFTC) and two other US agencies, resulted in a $4.3 billion penalty imposed on the platform, leading to the ousting of its founder and then CEO, Changpeng Zhao.
Binance agreed to pay $4.3 billion to settle with the Department of Justice & the Commodity Futures Trading Commission over illicit finance breaches, founder Zhao pleaded guilty to breaking U.S. anti-money-laundering laws. But the SEC's case is still hanging over the exchange. https://t.co/XHVrT9ys1r pic.twitter.com/hDSBDjKyeN
— Temmy Samuel (@temmy4samuel) January 22, 2024
Under new leadership, with Richard Teng as the current CEO, Binance is navigating a new chapter in the Web3 space. Teng emphasized a commitment to regulatory compliance in the exchange’s first public statement.
Here is my first blog as #Binance CEO.
I want to take this opportunity to share immediate focus areas, discuss our responsibility to users and my view on the future of our industry.https://t.co/c6QMS6Ulmm
— Richard Teng (@_RichardTeng) November 27, 2023
This regulatory-minded approach has permeated the entire business ecosystem, leading to Binance Labs’ recent revelation of not backing SkyArk Chronicles’ latest fundraising endeavor.
The post Binance Labs Claims to Be ‘Unaware’ of Leading $15M SkyArk Chronicles Fundraise appeared first on Cryptonews.
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Ether Price Will Crash Hard Below $1,000, Says This Popular Analyst
Benjamin Cowen, a popular cryptocurrency trader-cum-analyst, has suggested that the price of Ethereum’s native token ether (ETH) could experience further declines before finding a local bottom. Cowen expressed the possibility of ETH nosediving below the $1,000 level, attributing the potential dip to factors related to the asset’s historical patterns.
Will ETH Really Fall Below $1K?
Investors and traders have been closely watching ether’s price in recent weeks since the approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S. The second-largest crypto set a new year-to-date high of $2,720 after the approvals, but it has since turned soft alongside the broader crypto market.
From a technical perspective, analyst Benjamin Cowen has suggested that ETH historically “tests the integrity” of its major cycle lows roughly two times before proceeding into a new bullish phase. Cowen specifically spotlights 2015, 2016, and 2020 and confirms that another low in 2022 is yet to be revisited.
According to the trader, ether will first break down in its Bitcoin confluence (ETH/BTC) in the coming months before ETH/USD follows.
“So at some point, I think Ethereum will test the integrity of that low, back down below $1,000. But, history would also suggest that it won’t test it until after ETH/BTC breaks down. And history also suggests that ETH/BTC probably won’t break down in January because normally January is a good month for Ethereum,” Bowen told his nearly 800,000 YouTube subscribers.
However, the analyst noted that it could take some time before this scenario plays out amid increased speculation among investors about the possible introduction of a spot Ether ETF and Bitcoin’s April halving event. According to experts, now that there is clarity after the Bitcoin ETFs, spot ETH ETFs may come sooner than expected.
Spot ETH ETFs Aren’t Far Away
As ZyCrypto previously covered, multiple companies including BlackRock, Fidelity, Grayscale, and Cathie Wood’s ARK Invest are seeking regulatory approval to set up spot ether exchange-traded funds. However, the SEC recently delayed the verdict for these investment products.
Although such delays could subsequently delay a parabolic ETH rally, the SEC’s approval ultimately will propel the price of the asset to new heights. With spot ETH ETFs, U.S. investors will access a regulated, tax-advantaged way of gaining exposure to the industry’s second-biggest crypto.
Besides the potential ETF, technical developments within the Ethereum ecosystem could also propel the ETH price. Notably, ETH devs recently set the timeline for the final Dencun testnet upgrades. Dencun will be run through the Sepolia test network on January 30, and on the Holesky testnet on Feb.7. This puts the upgrade on track to hit the mainnet in late February or early March.
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