Polygon raises $450 million from SoftBank, Tiger, and others in a token sale 

Quick Take

  • Polygon has raised $450 million in a private token sale.
  • The Ethereum scaling project plans to grow its ecosystem and onboard the next billion users in crypto.

Ethereum scaling project Polygon has raised $450 million in a private token sale.

Sequoia Capital India led Polygon's fundraise, with more than 40 other investors participating, including SoftBank Vision Fund 2, Tiger Global, Alan Howard, Kevin O’Leary, Galaxy Digital, Sino Global Capital, Alameda Research, Digital Currency Group, Accel, Union Square Ventures, and Dragonfly Capital.

The investors were given Polygon's MATIC tokens at a discount but the project's co-founder Sandeep Nailwal declined to share specific details. The current price of MATIC is around $2, up 16% in the last 24 hours, according to CoinGecko.

With fresh capital in hand, Polygon plans to allocate $100 million to its ecosystem fund and about $10 million each to its various scaling products, including Hermez, Miden, Zero, and Nightfall, per year, said Nailwal. "That'd provide us three to five years of runway," he added.

Polygon recently committed to investing $1 billion in ZK-rollup-related scaling efforts and since then has announced two acquisitions worth $650 million: Mir and Hermez. Nailwal said the fresh capital will allow Polygon to consolidate its Ethereum scaling efforts and onboard the next billion users to Ethereum.

Since its founding in 2017, Polygon has massively grown its ecosystem. Over 7,000 decentralized applications are currently building on Polygon, the project said. Some of its major partners include Aave, OpenSea, Mark Cuban’s Lazy.com, and Dolce & Gabbana for its NFT efforts.

“The platform of choice to build on the blockchain today is Polygon," said Shailesh Lakhani, MD at Sequoia Capital India. "Thousands of developers across a range of applications are choosing Polygon and their complete set of scaling solutions for the Ethereum ecosystem." 

While Polygon is getting popular, it ran a massive risk of losing almost all of its tokens in December due to a critical bug. Polygon moved to fix the vulnerability, but still, a malicious actor exploited the bug and stole MATIC tokens worth over $2 million at the time. In the process, Polygon also paid a total of about $3.46 million in bug bounties to two whitehat hackers who discovered the bug.

Polygon recently also removed C-level roles such as CEO and COO, saying that the project is decentralized and cannot have such positions.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

The TRON Ecosystem Thrives Amidst Market Chaos

TRON DAO has announced the launch of a $10 million incentive fund in light of recent events to support Terra developers migrating to the TRON ecosystem, including TRON’s EVM compatible cross-chain solution BitTorrent Chain (BTTC), which helps facilitate the seamless transfer of assets across mainstream public chains, including TRON, Ethereum, and BNB Chain. 
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC