Key Points:
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Cross-chain protocol Wormhole secures a record-breaking $225 million in funding, becoming the largest crypto project financing in 2023.
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The Wormhole fundraising mechanism, common in crypto, remains a focal point, with details about the Wormhole token and its launch date yet to be disclosed.
In a significant breakthrough within the challenging fundraising landscape, Wormhole, the cross-chain messaging protocol, has successfully secured an unprecedented $225 million at a valuation of $2.5 billion. This remarkable achievement stands as the largest funding round for a cryptocurrency project in 2023.
Wormhole Fundraising Shatters Records with $225 Million
According to
Fortune, Wormhole’s CEO, Saeed Badreg, underscored that while this marks the protocol’s official first raise, it has been incubated for years by Jump Crypto, the crypto arm of high-frequency trading firm Jump Trading.
The Wormhole fundraising round, devoid of a lead investor, witnessed the active participation of major entities, including Brevan Howard, Coinbase Ventures, Multicoin Capital, ParaFi, Dialectic, Borderless Capital, Arrington Capital, and Jump Trading.
Notably, investors’ stakes in
Wormhole will exclusively consist of token warrants, departing from the conventional equity model—a common fundraising mechanism within the crypto space. However, Badreg remained tight-lipped about specific details regarding the Wormhole token and its anticipated launch date.
The newly established Wormhole Labs, arising from this development, is dedicated to advancing protocol development. The injected $225 million will be strategically divided between Wormhole Labs and the Wormhole Foundation, established in 2021 to incentivize developers to adopt the protocol.
Since its inception in 2021, Wormhole has emerged as a critical infrastructure for numerous major blockchains and projects, facilitating over $35 billion in cross-chain fund transfers and more than 750 million cross-chain messages.
This monumental Wormhole fundraising round and the establishment of Wormhole Labs mark a decisive split between Wormhole and Jump Crypto—a strategic move amid heightened regulatory scrutiny and a challenging year for the crypto industry.
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