Chainflip Labs, a Berlin-based business developing a decentralized cross-chain crypto exchange, has raised $10 million in venture capital funding.
Chainflip stated that it has received funding from Framework Ventures, Blockchain Capital, and Pantera Capital in exchange for stock in the company. There was no estimate given.
“We’re not only attempting to construct something that can bridge tokens from one chain to another,” he explained. “We’re aiming to create something that can take over the job of the centralized exchange in crypto because they’re still the most popular solution.“
While Harman acknowledges that decentralized exchanges such as the Ethereum-based Uniswap have previously done so to some extent, he believes Chainflip is unique in that it is not tethered to any particular chain. Harman noted that Chainflip has its own network of validators and is running its own blockchain.
Sale of tokens
In August 2021, the company raised $6 million through a private token sale. The protocol’s validators will use the FLIP token as collateral. “The token doesn’t exist yet,” Harman explained, “but we have a variety of contracts with 50 different investors.”
Framework Ventures, together with a number of other crypto investment firms, organized the token sale. Later this year, Chainflip plans to offer the FLIP token through an Initial DEX Offering (IDO).
According to Harman, the recent cash injection of $10 million provides the team with a runway for the next three to four years. It also means that funds from the future token sale can be used to provide liquidity for Chainflip’s automated market-maker (AMM) as well as the FLIP token itself.
Harman is no stranger to the crypto world. He founded Oxen, a private cryptocurrency and chat app, and continues to serve on its board. Harman began concentrating on Chainflip in 2020, and the company now employs approximately 25 people.
Overview of Chainflip
Chainflip is a next-generation cross-chain DEX that enables users to securely swap any cryptocurrency across several blockchains without the requirement of special software/wallets, collateral, synthetic counterparty assets, or wrapped/pegged tokens. Chainflip effectively expands the Ethereum world’s seamless and easy Uniswap exchanging experience.
Also Read: India’s First Truly Decentralized Exchange RupayDex set to launch, enables trading in Rupees
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