Electric Capital, a venture capital firm focused on crypto and blockchain projects, is reportedly seeking to raise $300 million for its third fund. The firm, founded in 2018 by former Coinbase and Facebook engineers Avichal Garg and Curtis Spencer, has previously backed major projects in the crypto space, such as Compound, Celo, Bitwise, and Near.
According to The Block, Electric Capital’s new fund will focus on early-stage investments in crypto infrastructure, decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3 applications. Additionally, a portion of the fund’s capital will be allocated to liquid assets, including bitcoin and ether.
One notable aspect of Electric Capital is its dedicated technical team, which conducts code audits and analysis on potential portfolio companies. The firm also publishes an annual report on the state of crypto development, tracking the number of developers working on various protocols and platforms.
The previous funds raised by Electric Capital have reportedly performed well. Its first fund, which raised $35 million in 2018, has returned 9.5 times the initial investment. The second fund, which raised $110 million in 2020, has returned 4 times the investment so far.
Electric Capital declined to comment on the report about its new fund.
In other news, Astar Network, formerly known as Plasm Network, has announced the launch of zkEVM, a zero-knowledge rollup Ethereum Layer 2 solution, powered by Polygon. The platform aims to provide scalability, security, and interoperability for Ethereum decentralized applications (dApps) by leveraging zero-knowledge proofs to compress transactions and reduce gas fees.
As part of the partnership with Polygon, Astar Network will benefit from the secure infrastructure of Polygon’s commit chain, which acts as a data availability layer for zkEVM. Additionally, Polygon will provide a bridge for users and assets to move seamlessly between Ethereum and Astar Network.
The introduction of zkEVM on Astar Network is expected to provide a new level of scalability and accessibility for Ethereum dApps, while also enabling access to the Polkadot ecosystem and its cross-chain capabilities. Astar Network aims to become an attractive platform for Ethereum developers looking to build innovative decentralized applications.
In an interview, Brad Garlinghouse, the CEO of Ripple, emphasized the importance of regulation in the crypto industry. While he expressed his belief in the potential of crypto to transform finance and promote inclusion and innovation, he acknowledged the risks and challenges that come with it, such as money laundering, terrorism financing, consumer protection, and cybersecurity.
Garlinghouse argued that the crypto community should not ignore or dismiss the role of regulators in shaping the future of digital assets. He emphasized the need for collaboration between the crypto industry and regulators to ensure a safe, transparent, and fair ecosystem for all participants. He also commented on the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC), expressing confidence that Ripple will prove XRP is not a security but a currency.
In the world of decentralized finance (DeFi), the price of Curve DAO Token (CRV), the governance token of decentralized exchange Curve Finance, experienced a sharp drop after a large amount of CRV was transferred from the wallet of one of the project’s founders to Binance. The founder clarified on Twitter that the transfer was only temporary for testing purposes and that he would return the CRV to his wallet soon. However, the incident raised questions about the credibility and transparency of Curve Finance, along with concerns regarding its token distribution and high inflation rate.
Curve Finance has recently introduced initiatives to improve governance and incentivize its community, including launching a DAO-controlled treasury and partnering with other protocols. However, it remains to be seen whether these efforts will restore confidence and boost demand for CRV in the long term.
Lastly, the Cosmos Hub, the flagship blockchain of the Cosmos network, is undergoing a major upgrade to enable liquid staking. Liquid staking allows users to stake their tokens and earn rewards without locking them up. The upgrade, called Gravity DEX, will introduce the Gravity Bridge, a cross-chain communication protocol that will connect the Cosmos Hub with other blockchains like Ethereum. This will enable token transfers between the Cosmos Hub and Ethereum, as well as the minting of ERC-20 tokens that represent staked ATOMs on the Cosmos Hub. The Gravity DEX upgrade will also include a decentralized exchange (DEX) that supports trading across different blockchains using an automated market maker (AMM) model.
The upgrade is expected to launch in Q4 2023 following a testnet phase and a community vote, and it aims to enhance the functionality and usability of the Cosmos Hub while increasing security, decentralization, and liquidity.