Binance Labs Invests in Sophon

Binance Labs, the $10 billion venture capital arm of Binance, has invested an undisclosed amount in Sophon, a ZKsync "elastic chain" Layer 2 network built using Matter Labs' modular ZK Stack framework.

Talks between Binance Labs and Sophon began in the summer, leading to an investment round concluded in August, as stated by Sebastien "Seb," Sophon's semi-anonymous co-founder and CEO. The investment was structured as a simple agreement for future tokens (SAFT). Seb declined to comment on Sophon's valuation, but noted that the investment brings the total funding raised to over $70 million. Previously, Sophon raised around $60 million via a node sale in May and $10 million in a seed round earlier this year.

What is Sophon?

Sophon is a zkSync elastic chain, formerly known as "hyperchain," serving as a Layer 2 network using Matter Labs' ZK Stack. Seb explained that, unlike generalist chains like ZKsync Era, Optimism, and Arbitrum, Sophon focuses on providing a more engaging platform experience to connect with retail users.

Seb compared Sophon's approach to popular web2 services, stating that the platform experience is crucial for user engagement. He sees Solana and Base as Sophon's closest competitors, focusing on similar retail-driven ecosystems.

Sophon is set to leverage native account abstraction and gasless experiences, enabling it to differentiate itself by powering the base gas token with SOPH. The platform aims to develop a range of consumer-focused web3 applications, including gambling, ticketing, and social platforms. Recently, Sophon announced partnerships with Aethir (AI), Azuro (predictions), and Beam (gaming) as initial ecosystem projects, with more to be revealed in the coming months.

Sophon Mainnet and Token Deployment Schedule

Sophon expects to launch its mainnet next month, coinciding with the SOPH token deployment. Further details about the token will be shared later. Currently, around 20 people are employed at Sophon, with plans to hire a senior Rust developer and a business development role focused on the Asia Pacific region.

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