The team behind Wormhole, a leading blockchain messaging protocol, has raised $225 million in a recent funding round, the largest of any crypto project so far this year. According to a recent Fortune report, the raise values Wormhole at $2.5 billion and comes from a variety of top crypto investors, including Brevan Howard, Coinbase Ventures, Multicoin Capital, and Jump Trading.
Wormhole allows developers to communicate across various blockchains, enabling interoperability and cross-chain functionality. The protocol was launched in 2021 and is used by several DeFi applications to transfer data and assets between blockchains.
The raise structured in token warrents
The raise was structured completely in token warrants rather than equity, meaning investors are entitled to a portion of the total supply of Wormhole’s upcoming governance token, details of which have not yet been announced. The funding will be split between newly created entities Wormhole Labs and the Wormhole Foundation to further develop the protocol.
This raise signals a new chapter for Wormhole after its split from Jump Trading, the crypto arm of the high-frequency trading pioneer. Wormhole was initially incubated within Jump Crypto for years before being spun out. Due to regulatory scrutiny, the separation comes amidst a downsizing of Jump Crypto’s US crypto operations.
“I think this raise is an eye-popping number for people, so it forces people to reassess,” said Saeed Badreg, CEO of Wormhole Labs. The team hopes to leverage the capital to expand hiring, build out the protocol’s capabilities, and drive further adoption.
The raise indicates challenges being overcome.
Wormhole has overcome past challenges, including a $320 million hack in early 2022. The funds were immediately restored by Jump Crypto, but drew negative attention. With core developers now entirely devoted to advancing Wormhole, the team aims to move the narrative forward.
“This is very positive, […] and almost like a new beginning for Wormhole,” said Robinson Burkey, Chief Commercial Officer of the Wormhole Foundation. The raise and formation of Wormhole Labs cements the protocol’s ability to thrive independently and fulfill its mission to connect blockchains.
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