Polygon Ethereum Investing Platform at $450 Million
Polygon just completed its first major financing round led by Sequoia Capital India and raised $450 million. It is expanding aggressively its Ethereum scaling solutions portfolio and is working towards attracting a larger developer ecosystem.
The other participants in the private token purchase were Tiger Global, SoftBank, Republic Capital, Galaxy Digital, Makers Fund, Alan Howard, Alameda Research, Dune Ventures, Steadview Capital, Alexis Ohanian's Seven Seven Six, Unacademy, Animoca Brands, Elevation Capital, Spartan Fund, Sino Global Capital, Variant Fund, Dragonfly Capital and Kevin O'Leary.
Many of these investors have not previously made a bet on such blockchain infrastructure play. Lately,Â Ethereum has grabbed the attention of the largest developer ecosystem even though it is equipped with high transaction costs and slow speeds.
Polygon is one of the few companies to help the network solve the growing pains by moving a significant amount of details off the blockchain and scaling the number of possible transactions.
The company is using the Plasma technique to make the information move off the blockchain. It is simultaneously experimenting on various more technologies like the optimistic rollups, zero knowledge rollups and validium.
Previously known as MATIC Network, it has spent about $1 billion in recent months to acquire firms and widen up the offerings. It has been building up the Plasma solutions and noticed certain limitations in approach. The company moved to the optimistic rollup initially and thereafter to zk rollup as well as the validium.
Polygon is currently one of the leaders among the side-chain of Layer-2 projects. It has processed over 23 million blocks and 1.3 billion transactions until January 20. In the duration of the past one year it had deployed more than 7,000 decentralized applications such as Pool, Uniswap, Sushiswap, Curve and giant NFT.
Today, thousands of developers are choosing Polygon for the Ethereum ecosystem and the team here is aggressive and ambitious. The massive funding of $450 million is a turnaround story for the company that struggled sharply in the early years.
However, Polygon has been working hard since 2017 and last year managed to raise $750,000 in VC funding. Institutional investors will be a great help to the company for striking partnerships and building up the brand.
It has a liquid token and a decent treasury. It is about 10 times bigger than Solana and Avalanche. The funding will further help in expansion and building larger developer ecosystems. Big names such as Ryan Wyatta can be hired then to head the company. However, the ultimate goal of Polygon is to become the AWS of Web3.