Solana, a smart contract-enabled and proof-of-stake coin, aims to raise $ 450 million in a funding round that was rolled out last March. The Solana ecosystem, which is backed by Sam Bankman-Fried, founder and CEO of derivatives exchange FTX, would use these funds to assume Ethereum’s supremacy in the Defi ecosystem.
Solana will raise $ 450 million in financing round
Solana, the FTX-backed proof-of-stake coin, is aiming to raise $ 450 million in a funding round that was scheduled to close but was instead expanded in March, according to a Decrypt report. The outlet, citing anonymous sources, claims that the coin had earmarked significantly less money in a smaller funding round, but found large capital interested in backing the project.
While there is no confirmation yet on the amount of money raised by Solana, these funds would be used to entice developers to build and bring their existing projects online. The project is part of a group of cryptocurrencies called “ethereum killers”, which seek to mimic the functionalities that this project has while improving performance and rates.
Solana claims to be technically superior to Ethereum and offers to process up to 50,000 transactions per second. The project has seen an increase in popularity due to its very low transaction fees and the use of its token platform by the FTX exchange, which allows deposits and withdrawals from this network. Last year, FTX CEO Sam Bankman-Fried chose to build the company’s Serum decentralized exchange on top of the Solana blockchain rather than on the Ethereum network because of these advantages.
‘Ethereum Killers’ – One more on the stack
While Solana is one of the more impressive networks aiming to replace Ethereum, with various defi-based projects choosing it as their chain, it is by no means the only one. Avalanche, another similar project launched last year, has also risen to the top of the ranks of these “ethereum killers”, claiming to be even better, allowing users to subnet, with higher performance and faster finality.
Even Cardano, a platform founded by Ethereum founder Charles Hoskinson, is now showcasing its smart platform capabilities and has generated significant interest in the crypto community. All of these chains are racing to achieve some kind of stable support before Ethereum manages to fix its scale issues. Fortunately for them, Ethereum founder Vitalik Buterin announced that scaling through sharding is not likely to be implemented before the end of 2022.
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