2024-10-05
On Oct 3, 2024, Binance Labs announced
investment in Sophon a ZKSync "elastic chain" or Layer 2 network.
This investment aims to advance the integration of web3 applications into daily
life.
A Sophon elastic chain is a Layer 2 network built using Matter Labs' ZKStack framework. Essentially, it's designed to enhance scalability and efficiency by offloading transactions from the main blockchain (Layer 1) to a secondary layer (Layer 2). This allows for faster and cheaper transactions.
Binance Labs has invested in Sophon at an undisclosed amount. Binance Labs' investment in Sophon, the round was
structured as a simple agreement for future tokens (SAFT).
In this case, Binance Labs invested in
Sophon through a SAFT, meaning they provided capital now and will receive
Sophon tokens in the future. This approach is common in the blockchain space as
it allows projects to raise funds early on while still developing their
technology.
Binance Labs has thrown some serious
cash into Sophon, pushing their total funding over the $70 million mark. They
initially pulled in around $60 million from a node sale back in May, and prior
to that, they secured $10 million in a seed round earlier this year. This
investment should give Sophon plenty of fuel to power their growth and tech
innovation.
Sophon is gearing up for a major
milestone with its mainnet launch scheduled for next month. This means that
the Sophon network will be fully operational, allowing users to interact with
the platform and its applications. Alongside the mainnet launch, the Sophon
token (SOPH) will also be introduced, enabling various functionalities within
the ecosystem.
This launch is a major step for Sophon
as it transitions from development to a live, functional network.
