Daniel Walker
Binance Labs, the venture capital and incubation division of Binance with a fund size of $10 billion, has made an investment in Sophon, a Layer 2 solution built on the ZKsync “elastic chain” technology. The specific investment amount was not disclosed, but Sophon utilizes the modular, open-source ZK Stack framework created by Matter Labs.
Discussions between Binance Labs and Sophon began in the summer, and the funding round closed in August, according to Sebastien, also known as “Seb,” Sophon’s semi-anonymous co-founder and CEO. Seb, who previously led DeFi at ZKsync, shared that this round followed a simple agreement for future tokens (SAFT). However, he declined to comment on the company’s current valuation.
This recent investment brings Sophon’s total funding to more than $70 million. Earlier this year, the company raised $60 million from a node sale in May, along with $10 million from a seed round. According to Seb, no further funding rounds are anticipated.
About Sophon
Sophon, previously known as “hyperchain,” is an elastic chain based on zkSync technology. This Layer 2 solution leverages Matter Labs’ ZK Stack framework to create its infrastructure.
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When asked about the differences between building on Sophon and other blockchain technologies like ZKsync Era, Optimism, and Arbitrum, Seb explained that while these chains are general-purpose networks focused on liquidity and DeFi, Sophon is designed to integrate more deeply with consumer-facing platforms. This strategic focus enables Sophon to connect web3 solutions with mainstream retail applications.
Seb likened the role of blockchain infrastructure to cloud services in web2. “People don’t usually think about whether they’re using AWS, Microsoft Azure, or Google Cloud when they’re using platforms like Netflix. What matters most is the overall experience,” he said. Sophon’s mission is to build an ecosystem that seamlessly merges web3 with daily lifestyle applications in an engaging and culturally relevant way.
Sophon’s Competitive Edge
Seb identified Solana and Base as Sophon’s primary competitors, due to their focus on retail-driven ecosystems. He highlighted that Sophon’s unique value proposition lies in its native account abstraction, gas-free transactions, and the ability to use SOPH as the base gas token. These features are aimed at fostering a web3 ecosystem that focuses on consumer-facing applications such as gaming, social platforms, and ticketing.
Sophon has already formed partnerships with notable companies like Aethir (AI), Azuro (predictions), and Beam (gaming), with additional ecosystem projects to be announced in the coming months.
Sophon Mainnet and Token Launch
Sophon plans to roll out its mainnet next month, alongside the launch of its native SOPH token, Seb revealed for the first time. While further details on the token are forthcoming, the company currently employs about 20 people and is looking to expand by hiring a senior Rust developer and a business development lead in the Asia-Pacific region.
