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JAN 30, 2024

Binance Labs clarifies involvement in SkyArk Chonicles’ latest funding round

by CoinNess Global

SkyArk Chronicles, a Singapore-based Triple-A gaming platform, recently announced the completion of a $15 million funding round that it suggested was led by Binance Labs, the venture arm of the leading global crypto platform. Binance has subsequently moved to clarify that it is not involved in the latest funding initiative.

Backed by Binance since 2021

The gaming ecosystem, which has enjoyed the backing of Binance since 2021, expressed excitement about the successful completion of the funding round. On Jan. 12, SkyArk posted on social media platform X, suggesting that Binance led the recent funding round but the project has since deleted that post.
The post mentioned the participation of more than 40 institutions in the funding round, including Vividthree Productions, a Singapore-based company. It didn’t disclose the amount it claimed was invested by Binance Labs at that time.
The announcement also highlighted contributions from other notable entities in the NFT and gaming space, such as GuildFi Global, Jambo Technology and BreederDAO. Additionally, individual investors like LayerZero CEO Bryan Pellegrino, Tangent Ventures Co-Founder Wangarian and Story Protocol CEO S.Y. Lee were all claimed by the project to have made noteworthy contributions to SkyArk’s funding initiative.

Binance Labs denial

However, recent developments have introduced an element of uncertainty. Binance Labs, in an X post on Monday, distanced itself from SkyArk Chronicles’ latest funding round. Contrary to the earlier announcement, Binance Labs clarified that it did not participate in SkyArk’s $15 million funding round earlier this month. The venture arm reiterated its sole investment in SkyArk during the Incubation Season 3 program in 2021.
This clarification from Binance Labs raised concerns about the accuracy of SkyArk Chronicles’ earlier announcement, leading to SkyArk posting to confirm the information supplied by Binance. That post states:
“We are very sorry for the miscommunication and appreciate the clarification from Binance Labs. We remain focused on making SkyArk a success and will continue working hard to achieve our vision.”

Community reaction

The saga has caused some concern within the community, underscoring the need for transparency in the cryptocurrency and gaming industries. Web3 and NFT consultancy firm Vader Research commented on the development, stating:
”SkyArk didn’t raise a new private round at all. They circulated the 2021 funding round announcement as if it recently occurred and used that to raise $11m from the public.”
In a subsequent post, Vader added that Binance still has considerable leverage where SkyArk is concerned, as it retains the right to decide whether to list the SkyArk token on the platform.
SkyArk Chronicles had a history of collaboration with Binance, dating back to 2021 when Binance selected SkyArk Studio for its prestigious Incubator Program Season 3. Out of over 1,000 applicants, SkyArk Studio was one of the nine teams chosen, emphasizing its potential in the blockchain and gaming space.
In a follow-up post on Monday, SkyArk co-founder Kelvin Chua expressed his gratitude to Binance for its support over the past three years. The gaming platform, led by seasoned professionals in traditional mobile games, aspires to revolutionize the gaming sector worldwide. Their focus on launching Fully-On-Chain and Only-Assets-On-Chain games sets them apart, with a commitment to incorporating NFTs seamlessly into various gameplay styles.
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