Binance Labs, the social impact fund formed by US-based cryptocurrency exchange Binance, has launched an incubation initiative that will help founders develop viable blockchain technology offerings.
The first iteration of Binance Labs Incubation Program will take place in San Francisco and will consist of a 10-week program, after which each participant will received $500,000 in exchange for a 10% equity stake or the equivalent in tokens.
Binance said in a blog post it decided to establish the scheme because too many crypto projects lacked the ability to fit the existing market or need for specific products, and because too many founders in the sector followed hype rather than focusing on building viable products.
The formation of the incubator comes two months after Binance revealed plans to invest up to $1bn through Binance Labs, providing funding for startups and other funds through its BNB token across 10 batches of $100m each.