Chainflip Labs Raises $10 Million For Cross-Chain DEX
Chainflip Labs, a Berlin-based startup developing a decentralized cross-chain crypto exchange, has secured $10 million in venture capital funding.
Chainflip stated on Wednesday that it has received investment from Framework Ventures, Blockchain Capital, and Pantera Capital in return for stock in the firm. There was no estimate given.
Chainflip’s creator and CEO, Simon Harman, told The Block that the company is attempting to “take capital efficiency to the logical extreme” with a user interface and experience that eliminates 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 acknowledges that decentralized exchanges such as the Ethereum-based Uniswap have previously done so to some extent, he believes Chainflip is unique in that it is not tied to any one chain. Harman noted that Chainflip has its own network of validators and is operating its own blockchain.
In August 2021, the firm raised $6 million through a private token sale. The protocol’s validators will utilize the FLIP token as collateral. “The token doesn’t currently exist but we have a range of contracts with 50 distinct investors,” said Harman.
Framework Ventures, together with a number of other crypto investment firms, organized the token sale. Later this year, Chainflip plans to offer the FLIP token through an Initial DEX Offering (IDO).
According to Harman, the recent capital injection of $10 million provides the team with runway for the next three to four years. It also implies that funds from the future token sale may be used to provide liquidity for Chainflip’s automated market-maker (AMM) as well as the FLIP token itself.
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