Home | Crypto News | $50M Fund Launched by Blockchain Developers to Boost Wormhole Adoption

$50M Fund Launched by Blockchain Developers to Boost Wormhole Adoption

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wormhole

Wormhole is a system for sending messages between different blockchains. It is often used to move assets from one blockchain to another.

An announcement on May 18 said that a $50 million fund had been set up to help companies that use the Wormhole cross-chain messaging protocol. Borderless Capital, a venture capital company, is in charge of managing the new fund. It is backed by over 20 other blockchain development teams and venture capital firms, such as Circle, Polygon Ventures, Solana Foundation, and Jump Crypto.

The fund will help startups “innovating cutting-edge apps, infrastructure, or tools that span multiple ecosystems,” according to the application page on the Wormhole website. The page also describes the fund as “anti-maxi,” or promoting the idea that users need more than one blockchain to solve their problems.

David Garcia, CEO and managing partner of Borderless Capital, said that he thought the new fund would help the Web3 economy grow and allow applications to draw more users:

“Our goal is to empower builders to transcend the limitations of individual ecosystems, paving the way for blockchain applications and protocols to realize their full potential.”

Wormhole is a way to send messages between different chains. It lets blockchain networks connect to each other and is often used to move assets from one blockchain network to another. Users could use the wormhole to transfer $1,801 worth of Ether from the Ethereum network to the Solana network. The announcement said that it is linked to more than 20 different networks.

LayerZero, Celer, deBridge, and many others are cross-chain messaging systems.

In the past few months, Wormhole has added more partners to its network. In January, the crypto exchange Uniswap picked it as the official bridging protocol for its cross-chain governance between Ethereum and BNB Network. And on April 26, Wormhole joined Circle’s Cross-Chain Transfer Protocol to make it easier to move $1.00 USD Coin from Ethereum to Avalanche.

But Wormhole’s security has also been a source of debate. In February 2022, its Solana bridge was hacked, which cost it $321 million. Later, developers fixed the flawed code that led to the hack and returned all users’ money.

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