Multicoin Launches $ 100 Million Crypto Fund With Solana DeFi Appearances

When Kyle Samani and Tushar Jain launched Multicoin Capital's first $ 10 million investment fund at the end of 2017, the combined value of the cryptocurrency market was only $ 170 billion. The crypto market has since grown to over $ 2.2 trillion, and Multicoin Capital needs more than $ 10 million to fund the next group of crypto entrepreneurs – 10 times more. The Austin-based investment firm today announced the launch of a $ 100 million venture capital fund it plans to use to support businesses and symbolize projects aligned with its investment strategy "Crypto Mega Theses". He also raised three members of the six-man team to associate level to help distribute the money: Matt Shapiro, Mable Jiang, and John Robert Reed. Now armed with the fresh capital that the company says is largely gathered from external institutional investors, Multicoin has focused on where it thinks the infamous cryptocurrency is the next step. And the company's biggest bet is a lesser known blockchain competitor to consider – Solana. “Solana is having a moment that few projects have experienced so far: the birth of a new DeFi ecosystem,” Multicoin Managing Partner Tushar Jain told Decrypt. For anyone who has focused on crypto over the past year, it shouldn't be surprising that investment firms have plunged into DeFi. Decentralized funding, an all-encompassing term for banking-like services, has been as heavy as it has been in crypto since mid-2020. But it's almost always associated with Ethereum, the blockchain network behind today's second largest cryptocurrency in terms of market capitalization. Jain thinks this may not always be the case. "The ultimate argument for Solana is that it will replace Ethereum as the dominant Tier 1 smart contract platform," he said. In other words, Solana wants to be where DeFi money goes. Last year, the DeFi industry was under $ 1m.

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