Binance is considering a valuation of $200 billion to secure government fund investment and protection

This article is sourced from Wu Says Blockchain.

Multiple sources have indicated to Wu Says Blockchain that Binance is considering attracting investments from government-controlled sovereign funds in places like Singapore, with a valuation between $200 billion and $300 billion, in exchange for better protection. Binance has not responded to this.

Although early investors like Koi Capital and Chen Weixing invested in equity at very low prices, the actual equity and control of Binance are held by founder Zhao Changpeng and co-founder He Yi. Wu Says Blockchain has learned that the equity ratio between Zhao Changpeng and He Yi is 92% to 8%. Previously, The Times also reported that Zhao Changpeng holds over 90% of the equity in Binance US.

Currently, Binance, due to its position as the world's largest exchange, has become a key focus for regulatory authorities in various countries, facing warnings from over ten financial regulatory bodies in recent months. Binance announced a shift from passive compliance to active compliance, mandating all users to complete KYC, and reducing the maximum leverage from 125x to 20x.

At present, Binance's founder and main team are located in Singapore. Previously, Binance Singapore (not Binance Global) received investment from Vertex Ventures, a subsidiary of Singapore's sovereign wealth fund Temasek. Binance Global continues to receive "logical" funding from relevant Singaporean government sources.

On August 23, Binance Singapore announced the appointment of Richard Teng, former Chief Regulatory Officer of the Singapore Exchange (SGX), as CEO. Before joining SGX, Teng served as the Director of Corporate Finance at the Monetary Authority of Singapore (MAS) for 13 years. According to his LinkedIn profile, he led the formulation and management of Singapore's securities and futures laws.

After rejecting an investment from Sequoia Capital, Zhao Changpeng clearly stated that Binance does not need external funding and is only interested in collaborating with venture capital firms that can help the exchange work with regulators and obtain operating licenses.

Binance US is also in the process of fundraising. According to The Block, Brian Brooks, the CEO of Binance US who announced his resignation in early August, indicated on Twitter that the "strategic direction disagreement" included the failure to raise $100 million from venture capital, primarily due to regulatory factors that make it difficult for U.S. investors to have confidence. However, Binance US is still working to raise $100 million, which could conclude as early as next month, while Binance CEO Zhao Changpeng confirmed that Binance US plans to go public, though the specific timing is undecided.
Based on BNB burn calculations, Binance's profit for the second quarter is approximately $1.95 billion, with first-quarter profits possibly nearing $3 billion. Coinbase reported a profit of about $800 million in the first quarter and $1.6 billion in the second quarter, with a current market value of $54.2 billion. Therefore, Binance's valuation of $200 billion to $300 billion may fall within a normal range.

Analysts point out that aside from Singapore, which is the most likely option for Binance to attract investment, Dubai and other locations are also possible choices. Additionally, regional exchanges of Binance may also collaborate with local VC firms that "can help work with regulators" for investment partnerships.