Quite a few traders together with Sequoia Capital India and Steadview Capital are in talks to again Polygon, which operates a framework for constructing and connecting Ethereum-compatible blockchain networks, by the use of tokens buy, three sources acquainted with the matter instructed me.
The traders want to buy tokens price $50 million to $150 million, sources mentioned, requesting anonymity because the talks are non-public. As is frequent with these token transactions, traders will have the ability to purchase the cash at a slight low cost. (20% low cost on the typical worth of MATIC previously one month, from what I’ve heard.)
Deliberations are ongoing, so the phrases might change. No person had a remark early final week.
Polygon, previously often called Matic, has established itself as one of the widespread layer 2 options. The agency, whose market cap has exceeded $14 billion, processes over 7.5 million transactions a day and permits hundreds of decentralized apps to proceed to make use of Ethereum because the settling layer however keep away from the more and more dear gasoline price.
Aave, Sushi Swap and Curve Finance are amongst among the largest blue-chip tasks which have deployed on Polygon, which has amassed one of many largest developer ecosystems (even when in comparison with some layer 1 blockchains).
An funding will mark a shift within the traders’ notion of India-based Polygon, which till latest years struggled to obtain backing from essentially the most outstanding enterprise companies within the South Asian market. (Most VCs in India, it’s price noting, had been additionally not actively monitoring the web3 house till a number of quarters in the past.) Moreover, Polygon has needed to confront at the very least one episode the place a few of its early traders requested their a refund throughout a bear cycle, in response to two individuals acquainted with the matter.
The agency returned cash to a few of these traders and survived. “It’s one of many themes with the Polygon group. Their perseverance is subsequent stage,” mentioned a former worker.
Polygon, which obtained backing from entrepreneur and investor Mark Cuban this 12 months, is amongst dozens of side-chains and roll-up networks that’s hopeful that Ethereum will proceed its dominance whilst a handful of different layer 1 tasks equivalent to Polkadot, and Solana, which is backed by Multicoin Capital and A16z, are trying to courtroom the nascent however fast-growing developer ecosystem.
On Bankless podcast earlier this 12 months, Polygon co-founder Sandeep Nailwal (pictured above) mentioned the web3 developer ecosystem at this time is centered round Ethereum and he’s hopeful that the community impact received’t dissipate. On the identical podcast, Nailwal and Mihailo Bjelic, one other co-founder of Polygon, mentioned Polygon is more and more increasing its choices to construct a blockchain infrastructure.