A fund of $50 million was Launched To help startups that use the Wormhole protocol across chains, according to the May 18th announcement. The new fund is managed by venture capital fund Borderless Capital and backed by more than 20 blockchain development teams and venture capital firms, including Circle, Polygon Ventures, Solana Foundation, JumpCrypto, and more.
It’s time to make building in crypto easier than ever.
Introducing the $50 Million Multi-Chain Ecosystem Fund, Powered by Wormhole! pic.twitter.com/y3VeCsUrSa
wormhole crypto May 18, 2023
The fund will help startups that “create cutting-edge applications, infrastructure, or tools that span multiple ecosystems,” according to its app page on Wormhole, which also describes the fund as “anti-maxi,” or promotes the idea that more than one blockchain is needed. To solve users’ problems.
David Garcia, CEO and Managing Partner of Borderless Capital, stated that he believes the new fund will help grow the Web3 economy and allow applications to attract new users:
“Our goal is to enable builders to move beyond the limitations of individual ecosystems, paving the way for blockchain applications and protocols to reach their full potential.”
A wormhole is a cross-chain messaging protocol. It allows different blockchain networks to communicate with each other and is often used to connect assets from one network to another. For example, if a user wants to transfer Ether (ETH) from the Ethereum network to the Solana network, they can do so using Wormhole. The ad said it was connected to more than 20 different networks.
Other cross-chain messaging protocols include LayerZero, Celer, DeBridge, and many others.
Related: The unilateral debate between bridging protocols lays bare security concerns
Wormhole has been expanding its network of partners in the past few months. In January, cryptocurrency exchange Uniswap chose it as the official bridging protocol for its cross-chain governance between Ethereum and the BNB Network. And on April 26, Wormhole integrated with Circle’s cross-chain transfer protocol to allow simpler transfers of USD currency from Ethereum to Avalanche.
However, Wormhole has also faced controversy over its security in the past. The Solana Bridge was breached in February 2022, resulting in $321 million in damages. The developers later corrected the faulty code that led to the exploit and reimbursed all users.
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