Dragonfly Capital aims to launch a $225 million crypto fund to invest in projects across the crypto space as we read more in our latest cryptocurrency news today.
After the success of the original 100 million funds kickstarted two years ago, the Dragonfly Capital Fund will target four areas: Non-fungible token projects, Defi protocols, Ethereum layer 2-based businesses, and centralized finance platforms. The San-Francisco-based venture capital fund which has been early backed of projects like Compound, Celo, Maker, and ByBit is now aiming to launch its own capital fund. Most of the past investments have been focused on the DeFi space but as the crypto space continues evolving, it’s clear that the fund is looking for new opportunities.
In a blog post, they acknowledged there’s a risk of betting on volatile instruments like NFTs as non-fungible tokens were raging this year and the industry gained mass-popularity as cryptos rallied to record highs. Riding on the NFT wave, the OpenSea digital marketplace raised $23 million in Series C funding back in February and once the novelty wears out, it will be uncertain whether the industry can continue its parabolic growth. Despite these concerns, Dragonfly Capital reiterated that these emerging spaces have the potential to become an important component of the digital future.
Venture capital company Sequoia will back the fund as a strategic limited partner alongside OKEx, ByBit, Bitmain, and Huobi, as the managing partner at DragonFly capital Hasseb Quereshi noted:
“Together with many of the technology and cultural leaders from US technology firms and VCs, we’re in an incredible position to help unite and push the crypto movement forward.”
As recently reported, Dragonfly researcher Ivan Bogatyy was able to use as much as $60 per week on the Amazon Web Services to expose a critical vulnerability on the MimbleWimble privacy architecture. The flaw discovered in the MW protocol could have left a hole in the network’s aspiration of being a viable alternative to the other privacy-focused blockchains such as Monero and Zcash. In a recent Medium post, the Dragonfly researcher said he was able to expose the critical vulnerability of about 96 percent of the GRIN transactions on the Mimblewimble. According to Bogatyy, this issue of the MW protocol only cost $60 per week on Amazon’s cloud computing platform.