Multicoin Capital led a $225 million funding round for Wormhole, a leading multi-chain solution with over $41 billion in assets and 30 chains, focused on user experience and zero-knowledge verification technology. I am.
Multicoin Capital is blockchain The cryptocurrency investment firm has announced that it is participating as co-lead investor in a $225 million funding round by Wormhole, a leading company in the multi-chain space. This funding round was completed late last year, but was only officially announced at the same time as the launch of Wormhole’s native token, the W token.
Wormhole is widely known as a full-stack interoperability platform that is more than just a bridge. It serves as a development platform that allows various applications across different categories to take advantage of its features. These include multichain decentralized finance (DeFi) protocols and applications such as Aave, Circle USDC, Hashflow, Pike, and Magpie, as well as multichain governance solutions such as Uniswap. Wormhole also supports token bridges, multichain oracle feeds, in-wallet bridging, multichain non-fungible tokens (NFTs), and more.
The versatility of applications built on Wormhole is a big reason why Multicoin Capital is excited. Despite its early stages, Wormhole has already facilitated the bridging of over $41 billion in assets. This achievement, coupled with support for approximately 30 disparate chains, positions Wormhole as a very robust and versatile bridging solution. The platform is compatible with the major Ethereum Virtual Machine (EVM) chains, as well as Near, Move-based chains, and Solana.
Wormhole’s commitment to providing a great user experience (UX) is evident in its products. One of its key use cases is asset pegging, which is facilitated through a frontend such as Portal. Additionally, Wormhole Connect, a front-end widget developed by Wormhole, simplifies accepting deposits and withdrawals from any asset on any chain. This feature allows derivatives decentralized exchanges (DEXs) like Drift to offer a UX comparable to centralized exchanges (CEXs) such as Binance, OKX, Bybit, and Coinbase International. Users can easily deposit any asset into her Drift as collateral, regardless of the originating chain. This frictionless cross-chain UX sets Wormhole apart in the industry.
Recently, Wormhole introduced Native Token Transfer (NTT). It is a framework that allows tokens to move seamlessly between chains using a burn-and-mint mechanism instead of traditional locking mechanisms. This innovation reduces gas costs, reduces delays, and increases end-user security. In particular, NTT-enabled tokens integrate seamlessly with Wormhole Connect, eliminating the need for users and application developers to worry about the underlying mechanics.
Another notable feature of Wormhole is its support for Circle’s Cross-Chain Transfer Protocol (CCTP), which allows the movement of USDC between chains. Wormhole covers all three configurations for moving assets between chains by supporting asset pegging, native token transfer, and CCTP. A single software development kit (SDK) allows developers to easily integrate and support all asset configurations.
Looking to the future, Wormhole is committed to enhancing the bridging system validation process. Historically, bridging systems have relied on varying degrees of trust to facilitate multi-chain verification. However, Wormhole takes a different approach. The platform recently announced that it will focus on zero-knowledge (ZK) verification technology, with the aim of eliminating the need for trust in the verification process. This move brings many benefits, including improved UX, developer experience (DevEx), and overall security.
Multicoin Capital expressed its admiration for the Wormhole team, praising their meticulous approach in building what they believe is a leading asset bridge and multi-chain development platform. The company is confident in Wormhole’s potential and appreciates the opportunity to support the team’s vision.
In conclusion, Multicoin Capital’s investment in Wormhole demonstrates the growing importance of secure and flexible interoperability platforms in the cryptocurrency industry. Wormhole’s diverse applications, extensive chain support, commitment to UX, and adoption of ZK verification technology make the platform well-positioned to drive the multi-chain revolution.
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