- A new system designed to increase the transaction capacity of Ethereum. Boba Network (BOBA)has raised $45 million from various investors, including cryptocurrency exchange giants Huobi, Crypto.com and BitMart.
An Ethereum layer-2 scaling project using optimistic rollups. Boba NetworkRaised $45 million in Series A funding and achieved a valuation of $1.5 billion.
Investors in the funding round included Crypto.com, Huobi, BitMart, Kinetic Capital, Infinite Capital, Hack VC, Will Smith-led Dreamers VC and M13 Ventures (founded by Paris Hilton’s husband Carter Reum). There was no lead investor in the round.
Alan Chiu, the founder of the project, told The Block that this is Boba’s first round of funding, and it happened through a token sale. While Chiu declined to share the terms of the token sale, investors are believed to have purchased the BOBA token for roughly $1.50 higher than the market price at the time of the interview.
After the news of the end of funding was announced, the price of the altcoin took action and showed a notable increase. At the time of writing, the price of BOBA coin has increased by nearly 25% in the last 24 hours to $1.80 while its market capitalization has soared to $287 million.
Chiu said the round was closed in the fourth quarter of 2021 when “market conditions were more bullish”. BOBA’s all-time high price was around $8 in November.
How will the platform evaluate its funds?
With the fresh capital in hand, Chiu said Boba plans to scale its team and bring more developers to its platform. Boba currently has over 30 employees and Chiu plans to double the team by the end of this year. As for growing its developer ecosystem, it plans to provide grants, launch an accelerator program, and spend more on marketing.
What is Boba Network?
The Boba Network, which describes itself as the “next generation optimistic roll-up scaling solution,” was launched in September by Enya, a key donor to the OMG Foundation. By aggregating and sorting transactions from the main chain, the platform not only improves Ethereum’s throughput, but also addresses the computational limitations of the blockchain.
Chiu, the web Optimism states that it is built on top of it, but the computation layer is different. The Admin project is a proprietary version that addresses Ethereum’s computational limitations. Hybrid Compute states that it owns the platform.
“We built Boba to address the computational limitations of Ethereum. Everyone else is focused on making Ethereum faster and cheaper, which is of course necessary, but there is an additional dimension of scalability that has been neglected – computational complexity.”
In addition, according to data from crypto monitoring platform L2Beat, Boba’s current locked-in total value (TVL) is over $170 million. The platform’s competitor, Metis, has a TVL of around $530 million, much higher than Boba Network.
*Optimistic Rollup: Rollups are solutions that execute transactions outside of Ethereum’s blockchain but save transaction data. Optimistic rollups automatically assume that transactions are valid.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.