polygonraised $450 million as a result of a major funding round led by Sequoia Capital India.
The platform plans to use these funds to build Web 3 applications and invest in zero-knowledge technology.
Sequoia Capital India, a subsidiary of the Menlo Park-based venture capital giant, has led Ethereum scaling platform Polygon’s massive $450 million investment round, helping the platform accelerate its Web3 plans, TechCrunch reports.
Other participants in the investment round included Japanese multinational SoftBank, Mike Novogratz’s investment firm Galaxy Digital, and crypto company Alameda Research, Tiger Global, Shark Tank’s Kevin O’Leary. The round included financing of 40 venture capital firms
In December, TechCrunch reported, citing anonymous sources, that some prominent VC investors were discussing supporting Polygon.
Sequoia’s aggressive bet on crypto comes after its biggest rival, Andreessen Horowitz, announced a $4.5 billion fund to support Web3 projects.
The native token of the popular tier-2 scaling solution, according to data provided by CoinMarketCap. Polygon (MATIC) The price was post-development, with MATIC trading at $1.96 at the time of writing, up about 17 percent from the last 24 hours. The cryptocurrency witnessed staggering growth throughout 2021 as well, rising more than 12700 percent.
The Ethereum blockchain suffers from high fees, with many competing layer-1 blockchain protocols attempting to exploit this weakness. Polygon acts as a secondary scaling solution; which means it works alongside the main blockchain and helps expand its boundaries by unblocking the network. Polygon uses a number of scaling solutions such as Miden and Nightfall to achieve an adequate level of scale.
Originally known as Matic Network, the project went through a rebrand last February, making a move to ease its competition with Polkadot. Not only that, Polygon increased its scaling capabilities by purchasing a zero-knowledge start-up called Mir for the $400 million MATIC in early December.
According to data provided by DeFi Llama, there is a total value of approximately $5.3 billion locked in Polygon-based protocols.
There is a growing interest in Web 3, third generation internet services made possible by decentralized networks. Sandeep Naiwal, co-founder of Polygon, said in a statement about Web3:
“Web 3 builds on the early open source ideals of the Internet, enabling users to create value, control the network and reap rewards. Ethereum, scaled by Polygon, will be the cornerstone of this next stage in the evolution of the Web.”
The completed funding round is known to be the first major funding round since the project was established in 2017.
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.