Chainflip Labs secures $10 million for cross-chain DEX
May 11, 2022
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Chainflip Labs is plotting an Initial DEX Offering for later this year. advertisement
Chainflip Labs, a Berlin-based startup building a cross-chain decentralized crypto exchange, has raised $10 million from venture capitalists. Framework Ventures, Blockchain Capital and Pantera Capital supplied the funding in exchange for equity in the company, Chainflip announced on Wednesday. No valuation was disclosed. Simon Harman, founder and CEO of Chainflip, told The Block that the startup is trying to “take capital efficiency to the logical extreme” with a simple interface and user experience that negates the need for wrapped tokens or niche wallets. “Really what we’re trying to do is not just build something where you can bridge tokens from one chain to another,” he said. “We’re trying to build something that can displace the role of the centralized exchange in crypto, because frankly speaking they are still the most widely used solution.”
While Harman concedes that decentralized exchanges like the Ethereum-based Uniswap have to some extent done that already, he sees Chainflip as unique in not being tied to any one chain. Chainflip has its own network of validators and is running its own blockchain, Harman added. Token sales
The company raised $6 million through a private token sale in August 2021. The token, FLIP, will be used as collateral for the protocol’s validators. “The token doesn’t currently exist but we have a range of contracts with 50 distinct investors,” said Harman. Framework Ventures led the token sale, alongside a number of other specialist crypto investment firms. Chainflip is planning an Initial DEX Offering (IDO) to publicly launch the FLIP token later this year. The latest capital injection of $10 million gives the team runway for the next three to four years, Harman said. It also means that the proceeds of the upcoming token sale can be freed up for providing liquidity — both for Chainflip’s automated market-maker (AMM) and for the FLIP token itself. Chainflip is not Harman’s first crypto endeavour. He founded and continues to sit on the board of Oxen, a private cryptocurrency and messaging app. Harman began focusing on Chainflip in 2020, and today the company employs some 25 people. © 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.