Binance Labs, the venture capital and incubation arm of Binance, has backed the $5-million Seed funding round of Web3 social network platform Sleek, according to an announcement.
The funding round, which also saw participation from notable investors, including Shima Capital, Spartan Group, Symbolic Capital, Market Across, and Big Brain Holdings, reportedly brought Sleek’s valuation to $50 million.
The funding was structured using a simple agreement for future tokens (SAFT), which is a legal agreement often used in fundraising for blockchain and cryptocurrency projects, particularly during initial coin offerings (ICOs) and token sales.
Originally known as ChapterX, a no-code metaverse platform, Sleek transitioned into a web3 social network, recognizing that the metaverse concept was not yet ready for widespread adoption.
ChapterX was incubated under Binance Labs’ Season 4 Incubation Program, and Sleek’s other co-founder, Chase Guo, previously served as an investment director at Binance Labs before co-founding ChapterX.
Sleek, launched in April of this year, operates as a blockchain-based social media platform, facilitating connections between users through a card and a Telegram bot.
Its primary goal is to help users remember and reconnect with people they meet in person. The platform has garnered 20,000 verified users, primarily through word-of-mouth referrals and without monetary incentives.
Sleek differentiates itself from other web3 social networks by prioritizing real use cases over token-based incentives. While many platforms rely on tokens to attract users, Sleek focuses on building a user base of committed followers.
To date, Sleek has sold approximately 15,000 cards, available in two variants (prism and premium) priced at around $30 and $35, respectively, through its website.
In August, Binance Labs announced that it was investing $10 million in Helio Protocol, a USD-pegged over-collateralised stablecoin.