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Binance Labs significantly reduces its investment in Sky Mavis; Binance spokesperson: No longer a major investor

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Binance Labs significantly reduces its investment in Sky Mavis; Binance spokesperson: No longer a major investor

Foreign media The Block quoted a spokesperson from Binance as saying that they have significantly reduced their investment in Axie Infinity developer Sky Mavis. Binance will no longer be the main investor in Sky Mavis, but will continue to support them in the future.

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In March, the Axie Infinity sidechain Ronin suffered losses of up to $616 million due to a vulnerability being exploited. Binance Labs, a subsidiary of Binance, immediately led a $150 million investment round, with participation from Animoca Brands, a16z, Dialectic, Paradigm, and Accel, to cover the losses from the Ronin exploit and ensure all users are compensated.

According to a report, a Binance spokesperson stated that since April, Sky Mavis has been consistently recovering funds and able to reimburse users without the need for a significant infusion from Binance. As a result, Binance will no longer lead the fundraising.

The spokesperson mentioned that Binance will still be investing an undisclosed amount in Sky Mavis and will continue to provide guidance. However, sources suggest that this undisclosed amount is significantly lower than the initial commitment.

A spokesperson for Sky Mavis responded, stating that the company has 150 employees, is financially stable, actively recruiting, and the investors from this round will remain involved.

Binance founder Changpeng Zhao CZ previously praised Axie Infinity for its crisis response during the Terra crash when Binance announced the suspension of LUNA and UST trading pairs. Zhao commended Sky Mavis for taking responsibility, devising a plan, and proactively engaging with Binance, which in turn provided assistance.

Binance, Sky Mavis, and Binance Labs have not publicly commented on the updated details of the fundraising.