Abu Dhabi Invests a Record $2 Billion in Binance

Monicah W

Binance announced today that MGX, a sovereign wealth fund from Abu Dhabi, invested $2 billion in the company. The transaction happened entirely using stablecoins.

This is both the largest investment ever made in a crypto-related business and the largest investment ever made using cryptoassets. Binance didn’t specify which stablecoin was used, but the UAE has favored Tether products in the past.

MGX Makes Record Binance Investment

The United Arab Emirates has recently been positioning itself as a crypto hub, and Abu Dhabi is a particular region of interest. MGX, an Abu Dhabi-based Web3 fund that has already made massive AI investments, has today announced a record investment in Binance.

Changpeng “CZ” Zhao, former CEO of Binance, also shared this news on X (formerly Twitter).

“MGX, an Abu Dhabi sovereign wealth fund, invests $2 billion in Binance for a minority stake. The transaction will be 100% in crypto (stablecoins), marking it the largest investment transaction done in crypto to date. This is also the first institutional investment Binance has taken. Onwards,Build!” CZ wrote.

Binance, the world’s largest crypto exchange, also corroborated these claims with its own press release. This MGX investment isn’t Binance’s first entanglement with Abu Dhabi, as the firm considered setting up a headquarters there.

However, in 2023, CEO Richard Teng scrapped its UAE license application, signaling a shift away from the nation.

Since then, however, interest has shifted back. The firm’s press release claimed that roughly one-fifth of its workforce is based in the UAE, for example.

Teng called the development a “significant milestone” and said Binance is “committed to working with regulators worldwide.” This MGX investment will likely increase economic ties in the region.

“We are excited to announce the first-ever institutional investment in Binance by MGX. This is a significant step in advancing digital asset adoption and reinforcing blockchain’s role in global finance,” Binace annouced on X.

Also, Binance claimed that MGX made this $2 billion investment entirely in stablecoins. Last August, Tether launched a stablecoin pegged to the UAE’s currency, and Abu Dhabi subsequently recognized USDT as an Accepted Virtual Asset.

Binance’s announcements have been surprisingly light on the exact details of its future relationship with MGX.

However, they were very clear that it was a big deal. This marks the largest-ever investment in a crypto firm and the largest investment paid entirely in cryptocurrency. Wherever the partnership goes from here, it has already made history.

The post Abu Dhabi Invests a Record $2 Billion in Binance appeared first on BeInCrypto.

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Polyhedra Network’s ZKJ Crashes 60% Amid Liquidity Crisis

Polyhedra Network’s ZKJ token crashed nearly 60% in under an hour on June 15, wiping out over $360 million in market capitalization. 

KOGE, the governance token of 48 Club DAO, also dropped by 50% during the same window, losing more than $100 million in market cap.

ZKJ Faces Major Liquidity Mismanagement

The sharp sell-off began when the KOGE/USDT liquidity pool was depleted, leaving liquidity providers unable to exit. Panic selling followed as investors began converting KOGE into ZKJ.

According to early community reports, the KOGE team failed to add USDT to its liquidity pool. This triggered what some users called a “rug from both sides.”

ZKJ Price Crash. Source: CoinGecko

With no USDT left in the KOGE pool, holders rushed to offload KOGE into the ZKJ pool, which was still actively defended by its team.

However, the rapid influx overwhelmed the ZKJ/USDT pair, causing a domino effect that tanked ZKJ’s price and investor confidence.

Members of the 48 Club DAO, the group behind KOGE, expressed outrage over the incident, accusing the team of negligence and mismanagement.

Social media was flooded with posts demanding accountability from both projects. The phrase “rugged from both sides” trended within crypto circles.

This incident has severely damaged trust in both ecosystems, with users questioning the sustainability of their liquidity strategies.

Beyond liquidity concerns, market structure added further pressure. A 5.3% ZKJ token unlock, worth $32 million, is scheduled later this week.

With Binance Alpha volume collapsing, analysts warned that bots and whales dominate the order books, exacerbating volatility in both tokens.

ZKJ and KOGE: Tightly Linked Ecosystems

The crash highlights the intertwined nature of ZKJ and KOGE. Both tokens are frequently paired in liquidity pools and used in farming strategies.

While ZKJ powers zkBridge and ZKP infrastructure, KOGE operates as a governance token for 48 Club—a group focused on BNB Chain DeFi.

Recent coordinated farming and arbitrage activity had inflated volumes between the two, making them vulnerable to liquidity shocks.

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