Tuesday, September 27, 2022

Diem to be Revived With New Aptos Labs $150M Capital Injection

Aptos Labs has closed a Series A funding round with $150 million generated. The round, which was co-led by FTX Ventures and Jump Crypto, enjoyed participation from Multicoin Capital, Andreessen Horowitz, Circle Ventures, and a couple of other investors.

Meta-birthed cryptocurrency project, Diem hopes to be revived with the $150 million realized by Aptos Labs.

In January, Stuart A. Levey, CEO of the Diem project declared that the stablecoin and payment platform was shutting down amid regulatory scrutiny. To complete the folding up process, all its assets were sold to Silvergate Capital Corporation. The Silvergate Bank holding company issued 1,221,217 shares to Diem based on the terms of the asset purchase agreement and paid $50 million in cash. 

Meanwhile, two former Meta employees, Avery Ching, and Mo Shaikh banded to create the Aptos blockchain utilizing Diem’s open-source technology. Then, in February Aptos Labs disclosed its plans to reinvigorate the stablecoin project. The goal was to develop the safest and most production-ready blockchain in the world. 

The Aptos Labs Blockchain

The Aptos Labs is a Layer 1 solution focused on offering high scalability and low transaction fees. Its offerings are beneficial to non-fungible tokens (NFTs), social media, and decentralized finance (DeFi).

According to one of the co-founders of Aptos, Mo Shaikh, the creation of this blockchain is to provide a more reliable foundation for Web3.0. In a press release, he said;

“We’ve known for a while that, due to issues like outages and downtime, current blockchains are not fit for purpose when it comes to mass Web3 adoption. That’s why we’re building a blockchain to be the reliable foundation for Web3 that ushers in users from around the world to experience the benefits of decentralization.”

With a plan to restore Diem, Aptos Labs had secured $200 million in an earlier round led by Andreessen Horowitz. Several organizations and individual investors like Katie Haun, Multicoin Capital, and currently troubled Three Arrows Capital joined in the round. 

This brings the total fund generated by Aptos for Diem in 2022 to $350 million. 

 

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

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