Wormhole is a technology that allows for the easy transfer of assets between different blockchains.
According to an announcement on May 18, a fund of $50 million has been established to support startups utilizing the Wormhole cross-chain messaging protocol. The fund will be managed by Borderless Capital, a venture capital fund, and has the support of more than 20 other blockchain development teams and venture capital firms. Notable backers include Circle, Polygon Ventures, Solana Foundation, JumpCrypto, and others.
It's time to make building in crypto more accessible than ever before.
Introducing the $50m Cross-Chain Ecosystem Fund, powered by Wormhole! 💎 pic.twitter.com/y3VeCsUrSa
— Wormhole (@wormhole) May 18, 2023
The fund aims to assist startups that are creating advanced applications, infrastructure, or tools that operate across multiple blockchain ecosystems. The application page on the Wormhole website describes the fund as “anti-maxi,” emphasizing the belief that utilizing more than one blockchain is necessary to address users’ challenges effectively.
David Garcia, CEO and Managing Partner of Borderless Capital, expressed his belief that the new fund would contribute to the expansion of the Web3 economy and enable applications to attract new users.
“Our aim is to empower creators to overcome the constraints of specific ecosystems, thereby unlocking the full potential of blockchain applications and protocols.”
Wormhole is a special type of messaging protocol that enables various blockchain networks to communicate and interact with each other. Its main purpose is to facilitate the transfer of assets from one network to another. For instance, if someone wants to move Ether (ETH) from the Ethereum network to the Solana network, they can utilize Wormhole for that purpose. The protocol is connected to more than 20 different networks, as mentioned in the announcement.
In addition to Wormhole, there are several other cross-chain messaging protocols available, such as LayerZero, Celer, DeBridge, and many more. These protocols also facilitate communication and asset transfers across different blockchain networks.
In recent months, Wormhole has grown its network of partners. In January, the popular crypto exchange Uniswap selected Wormhole as the designated bridging protocol for cross-chain governance between Ethereum and the BNB Network. Moreover, on April 26, Wormhole integrated with Circle’s Cross-Chain Transfer Protocol, enabling easier transfers of US Dollar Coin from Ethereum to Avalanche.
Unfortunately, Wormhole faced security concerns in the past. In February 2022, the Solana bridge of Wormhole was compromised, resulting in a loss of $321 million. However, the developers promptly addressed the issue by fixing the flawed code that had caused the exploit. Additionally, they reimbursed all affected users for their losses.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
