Injective has managed to raise $40 million in a private token sale led by Jump Crypto according to reports from Tech Crunch. Brevan Howard Digital, the cryptocurrency arm of British billionaire hedge fund manager Alan Howard, also took part in the funding round.
The capital was raised by Injective and Injective Labs, a software development firm that supports the blockchain, to add new stockholders to the ecosystem. The platform aims to optimize and build decentralised finance applications such as exchanges, derivatives, prediction markets, and options. The platform also produces financial decentralised applications (dApps). Through Injective, founder Eric Chen aims to create an Ethereum virtual machine-compatible blockchain specialized in decentralised finance use cases. Chen said,
This is a fundamental piece of innovation and a fundamental paradigm shift that no one wants to be excluded from or too late on adopting. This is why we’re so excited – those who are making large efforts and commitments are innovating forward.
Chen added that the new funds will be used to support incoming Injective developers as well as build critical toolkits, support software, and core upgrades to expand its ecosystem. The capitals will also allow Injective to increase utility for its native token, INJ, and will provide liquidity and support to dApps on its blockchain. The raise will also support a broader effort to bring on more institutions and provide greater liquidity to DeFi according to Chen. He added,
The ecosystem is institution-ready and excited for sophisticated liquidity coming in as well. It’s a synergetic effort for broader adoption.
According to Chen, in recent times there has been greater interest in DeFi and activity from traditional institutions and the traditional finance sphere, noting,
This is definitely shown with financial service providers like investment banks, brokerage firms and asset managers regardless of market conditions.
Despite the crypto market still finding itself in troubled waters, the price of Bitcoin remaining below $25,000, and start-up valuations are down across the board, Chen thinks now is the optimal time to raise capital, saying,
We want to go against what the current trend is. We want to be in the best position possible during a bear market to build and support new incoming developers and capture those opportunities.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
