Solana Labs raised $314.15 million in a private token sale round. This round was led by Andreessen Horowitz A16z and Polychain Capital.
Other participants included in this round were Alameda Research, CMS Holdings, CoinShares, Jump Trading, Multicoin Capital, Sino Global Capital, and many more. After a few days some reports reported that Solana couls raise anywhere from $300 million to $450 million.
Solana Labs plans to launch an incubation studio to speed up the development of projects building on the Solana blockchain and set up a venture investing arm for the Solana ecosystem.
What is Solana?
Solana is seen as a competitor to Ethereum, which today is the largest blockchain platform for decentralized projects and applications. Being launched last year Solana, however is faster and cheaper than Ethereum for executing transactions.
Currently Ethereum carries out 15 transaction per second whereas, Solana carries out 50,000 transactions per second. The average fees of per transaction is about $6, while Solana’s cost is around $0.00001. Ethereum’s fees are likely to drop when they move to a proof-of-stake system.
The Co-founder and CEO of Solana Labs said” The next phase is onboarding a billion users.”
Future of Solana
The number of projects is increasing tremendously. They have already done more than 90 projects in the Solana’s ecosystem. Some of the notable projects include Serum, Raydium, Maps.me, and Pyth Network.
Solana has a long way to go. The total value locked (TVL) in Solana’s DeFi ecosystem is currently way smaller than Ethereum’s. the total value of Ethereum projects is over $59 whereas the total value of Solana projects is less than $1 Billion.
Polychain Capital’s managing partner Olaf Carlson-Wee”In our view, Solana is a compliment to Ethereum” he said. “We’re thrilled to see strong developer activity and a continually expanding community grow around the project.”
The private token sale round brought Solana Labs total funding to date to be more than $335 Million. The project has previously raised $20 Million in a Series A in 2019 and 1.8 million via Coinlist last year.
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