Binance bets that the Web3 + AI track is about to explode?

Authors: Viee, Crush, Biteye

Recently, Binance's venture capital department, Binance Labs, has increased its investment in the AI sector. Investment director Max Coniglio publicly stated, "AI and blockchain are a powerful combination."

So, what is the appeal of AI + blockchain?

The key point is that they can complement each other and overcome each other's weaknesses. On one hand, AI can improve the user experience of blockchain and enhance decentralized systems. On the other hand, blockchain can ensure the authenticity of AI data, facilitate collaboration on open-source projects, and support the computational needs of AI.

At the same time, the AI sector is also a hot spot in this cycle. Therefore, in this article, Biteye reviews the AI projects invested in by Binance Labs, along with the corresponding participation methods.

0 1 Project Overview

Note: Total funding includes all disclosed financing

1. Sahara: AI network infrastructure to support AI assetization. Total funding of $49 million, invested by Binance Labs, Pantera Capital, and others.

2. MyShell: Decentralized AI agent generation platform. Total funding of $16.6 million, invested by Binance Labs, OKX, Dragonfly, and others.

3. DIN: Modular AI-native data preprocessing layer. Total funding of $8 million, invested by Binance Labs, HashKey Capital, and others.

4. Pentagon Games: Web3 AI game publisher. Total funding of $6 million, invested by Binance Labs, Animoca Brands, and others.

5. Privasea: AI privacy computing platform based on fully homomorphic encryption. Total funding of $5 million, invested by Binance Labs, OKX, and others.

6. Swan Chain: L2 OP superchain designed for AI computation. Total funding of $3 million, invested by Binance Labs, SNZ Holding, and others.

7. CoralApp: Launching Coral Phone, Binance's first mobile project. Total funding of $3 million, invested by Binance Labs and others.

8. Aggregata: AI-based decentralized data marketplace. Total funding undisclosed, invested by Binance Labs, and others.

9. StarryNift: Gamified platform integrating NFT creation and trading. Total funding undisclosed, invested by Binance Labs, OKX, and others.

10. QnA3.AI: AI-driven Web3 knowledge-sharing platform. Total funding of $250 million, invested by Binance Labs and others.

11. NFPrompt: Privacy-centric, scalable Proof of Stake (PoS) Layer 1 smart contract platform. Total funding of $45 million, invested by Binance Labs, a16z, Polychain, and others.

12. Hooked Protocol: Integrating AI, the metaverse, and Web3 education. Total funding of $8.5 million, invested by Binance Labs, Hongshan, and others.

13. Arkham: AI-based crypto analytics platform and data tracking dashboard. Total funding of $2.5 million, invested by Binance Labs and others.

14. Sleepless AI: AI-based virtual companion game. Total funding undisclosed, invested by Binance Labs, Foresight Ventures, and others.

0 2 Prospect Analysis

Binance Labs' investment in AI aims to promote the integration of AI and blockchain technology, thereby facilitating the development of decentralized applications (DApps). For example, by investing in decentralized platforms like Sahara AI and MyShell, they leverage AI to enhance the user experience of blockchain and ensure the authenticity and security of data.

The AI sector has shown significant development potential in the first half of 2024, and with technological advancements and growing market demand, further progress is expected in the second half of the year. However, despite the optimistic outlook, the market still faces challenges. For instance, the lifecycle of AI applications is generally short, and users' willingness to pay is low, which may hinder innovation and sustainable development. Additionally, the overall market environment is influenced by factors such as regulation and liquidity, and future investment opportunities will depend on the market's ability to address these challenges.

Therefore, while the AI sector demonstrates strong growth potential, it is essential to carefully assess these risks. For good projects, both an innovative technological foundation and a sustainable business model are indispensable; those who can seize opportunities may become the winners in the future AI sector.