Blockchain builders launch $50M fund to extend Wormhole adoption

A $50 million fund has been launched to assist startups that use the Wormhole cross-chain messaging protocol, in response to a Could 18 announcement. The brand new fund is being managed by enterprise capital fund Borderless Capital and is backed by over 20 different blockchain growth groups and enterprise capital corporations, together with Circle, Polygon Ventures, Solana Basis, JumpCrypto, and others.

The fund will assist startups which might be “innovating cutting-edge apps, infrastructure, or instruments that span a number of ecosystems,” in response to its utility web page on the Wormhole web site, which additionally describes the fund as “anti-maxi” or selling the concept a couple of blockchain is required to unravel customers’ issues.

David Garcia, CEO & Managing Accomplice of Borderless Capital, acknowledged that he thought the brand new fund would assist to develop the Web3 economic system and permit functions to draw new customers:

“Our purpose is to empower builders to transcend the restrictions of particular person ecosystems, paving the best way for blockchain functions and protocols to comprehend their full potential.”

Wormhole is a cross-chain messaging protocol. It permits completely different blockchain networks to speak with one another and is usually used to bridge belongings from one community to a different. For instance, if a person needed to switch Ether (ETH) from the Ethereum community to the Solana community, they may achieve this utilizing Wormhole. It’s linked to over 20 completely different networks, the announcement stated.

Different cross-chain messaging protocols embody LayerZero, Celer, DeBridge, and lots of others.

Associated: Uniswap debate between bridging protocols lays bare security concerns

Wormhole has expanded its community of companions prior to now few months. In January, crypto change Uniswap chose it as the official bridging protocol for its cross-chain governance between Ethereum and BNB Community. And on April 26, Wormhole built-in with Circle’s Cross-Chain Switch Protocol to allow for simpler transfers of US Greenback Coin from Ethereum to Avalanche.

Nevertheless, Wormhole has additionally met with controversy over its safety prior to now. Its Solana bridge was hacked in February, 2022, resulting in $321 million in losses. Builders later patched the defective code that had led to the exploit and reimbursed all customers.

Journal: Should crypto projects ever negotiate with hackers? Probably