CRC Blockchain Industry Commentary #11
1) Polychain, Web3 Foundation start a fund to back projects building on Polkadot
Polychain Capital has partnered with the Web3 Foundation, a Swiss non-profit fostering Polkadot development via grants, to create the Polkadot Ecosystem Fund. The fund that focuses on projects building atop the Polkadot network. Unlike the Web3 Foundation’s grant program, the new fund may take an equity position in participating startups in exchange for an investment. The size of the fund is reportedly “in the orders of millions,” but the teams did not disclose their exact contributions.
CRC Commentary: Polkadot in its first token sale, raised ~$144 million, and the Web3 Foundation reported its most recent fundraise closed at a $1.2 billion valuation. Not to mention that one of the leaders of Web3 Foundation is ex-Polychain Partner Ryan Zurrer. It seems like they cooperate to spur ecosystem growth within the Polkadot network. Polkadot is one of many new blockchains slated to launch in the coming months. As Chris Burniske points out, this dense launch schedule could spread developers thin. But talent tends to gravitate towards platforms with the best available tooling and financial support.
CoinList raised $10 million in a new round as the token sale platform looks to launch a new crypto exchange, dubbed CoinList Trade, and wallet. Polychain Capital led the round, but the notable participant was Twitter and Square CEO Jack Dorsey. Dorsey is a prominent Bitcoin advocate, as evidenced by his dedication to its development through the Square Crypto initiative, and backed CoinList because “[c]rypto needs a trustworthy platform for launching new projects.”
CRC Commentary: Initial coin offerings and initial exchange offerings are down considerably from their respective peaks in terms of volume and funds raised. CoinList sales appear to defy this trend, as its recent token offerings like Algorand’s Dutch auction in June 2019 ($60 million) and Nervos Network’s sale that closed last week (over $69 million) exceeded expectations. Jack Dorsey’s investment marks his first public foray into cryptocurrency beyond Bitcoin. While it is not a direct investment into an alternate coin, Dosey’s initiatives (through Cash App and Square Crypto) could change down the road if he continues to diversify his crypto-related investments.
- CRC is a blockchain investment bank founded by senior executives from top investment institutions in China.
- We are dedicated to providing professional, international and institutional investment banking services to blockchain entrepreneurs.
- CRC has received strategic investments from Huobi Global, JLAB, Gobi VC, Cloudwise and U-nobleman, etc.
- CRC has recently closed subscriptions for its token fund, Blockchain Renaissance I, which is dedicated to support greatest value providers in the blockchain ecosystem.
- For more information, please visit: crc.capital