Silicon Valley financial backing company Sequoia Capital has actually introduced a brand-new fund to invest solely in cryptocurrency—with up to $600 million to have fun with.
Sequoia Capital revealed Thursday that the fund, Sequoia Crypto Fund, would certainly be made use of on fluid tokens as well as electronic possessions.
The company has actually alloted in between $500-$600 million, according to a declaration on its web site. Sequoia Capital, a 50-year-old company, has actually currently made considerable financial investments in the cryptocurrency area.
“Sequoia Crypto Fund complements our broader commitment to crypto,” claimed the declaration. “Our objective with this fund is to get involved even more proactively in methods, much better assistance token-only tasks, as well as find out by doing ourselves.
“We remain committed to working collaboratively with the crypto community, including providing ongoing support for open-source research.”
It included that it had actually been asked by its network in the crypto area to take a “more active role in managing” its tokens—consisting of laying them. Staking refers to the procedure of individuals locking-up their cryptocurrency, typically to give liquidity to a procedure or network, in exchange for benefits in tokens.
It can likewise refer to the procedure whereby the drivers of proof-of-stake networks secure their tokens to aid the blockchain validate purchases.
A variety of large cryptocurrencies like Solana as well as Tezos currently utilize this agreement system, as well as the second-largest by market cap, Ethereum, is in the procedure of making the change. Proof of risk is various to Bitcoin’s proof-of-work procedure, which is far more power extensive.
Sequoia Capital has actually currently partnered with several of the most significant names in the crypto globe, consisting of the chief executive officer of the FTX exchange, Sam Bankman-Fried, as well as Jack Dorsey, the founder of Twitter as well as Bitcoin lover.
https://decrypt.co/93130/sequoia-capital-600-million-cypto-fund-tokens
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