Sunday, September 25, 2022

Chainflip Obtains $10M in Funding to Build Cryptocurrency DEX

Chainflip Labs has announced that it has raised the sum of $10 million through Venture Capital (VC) funding thereby placing it on the runway to build its decentralized cryptocurrency exchange (DEX).

Chainflips, an Automated Market Maker (AMM) which works out of Berlin, hinted that the kind of DEX that it plans to build with the funds it received would allow for cross-chain transactions.

According to the AMM-based protocol, the $10 million funds it received from three different venture capitalists were obtained in exchange for equity.

Commenting on the development, Simon Harman who steers the rudder at Chainflip said that the kind of DEX that the company is looking to build would have a user-friendly interface. It would eliminate the demand for a wrapped token and at the same time, it would offer functionality that surpasses the mere function of bridging tokens from different blockchain networks.

Although Harman gave a nod to the fact that a decentralized exchange like the Ethereum-based Uniswap has about the same features as the proposed Chainflip DEX. The Chainflip CEO however said that Chainflip’s DEX would be one of a kind as it would be a cross-chain network that is not latched to any particular chain, one which operates on its network and also has its own unique set of validators.

“What we are set out to build as a company has the potential of displacing cryptocurrency centralized exchanges,” said Harman.

Although in the year 2021, through the sales of FLIP- the native token of the Chainflip protocol, the blockchain firm raised $6 million, the firm however has up its sleeves a plan to publicly springboard the FLIP token later this year through an Initial Decentralized Exchange Offering (IDO).

Venture Capital Backing Becoming a Norm

The blockchain technology industry has gradually grown from the initial era of skepticism into this current phase where venture capitalists are scrambling to get involved with startups through projects which have the potential of becoming a gem.

One such classic example is BlockApps, a Web3 blockchain company that recently pulled a backing of $41 million in a VC-led funding round. Another stellar case is that of CoinDCX, an India-based Web3 firm that also received a sum of $135 million in a recent funding round from Pantera Capital and Steadview Capital amongst others.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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