multicoin capital

THORChain (RUNE) Price Soars After Multicoin Capital’s Heavy Investment

While many investors in the cryptospace focus a great deal on the high flyer cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Polkadot (DOT) amongst others, other digital tokens including THORChain (RUNE) are also getting backing from crypto investment firms and are outperforming the market as a result.

In the latest spate of its cryptocurrency bets, Multicoin Capital, an emerging investor in the space has announced the acquisition of a large position in RUNE tokens, a significant milestone for the token seen in the cryptospace as highly undervalued.

“I’m excited to announce that Multicoin has accumulated a large position in $RUNE and share our research report on THORChain. THORChain provides a trust-minimized way to trade spot tokens (not just derivatives) across blockchains,” said Tushar Jain, Multicoin Capital’s Manager Partner, We believe the number of chains with exciting projects built on them will only continue to grow for the next several years. We believe THORChain’s RUNE token is the best way to invest in the growing diversity of the crypto ecosystem.”

The bet by Multicoin Capital is sending RUNE price to the moon. According to Coingecko, the token has gained 30.8% in the past 24 hours, after defying the general dip experienced in the market, a couple of days back.

Uncommon Bet For A Money Bag

The world of cryptocurrencies today is filled with numerous investment moves by crypto assets management firms, and hedge funds amongst others. Investments into a cryptocurrency that is neither Bitcoin nor any of the top altcoins is highly unusual for an investment firm.

While the THORChain (RUNE) backing may come as a surprise to many, it is an indication that space is maturing and investors are not just moved by the price attractions of today, but by the value offerings and future prospects.

While RUNE may not be Bitcoin that was recently purchased by payment services giant Square Inc, it sure has the backing of a money bag that believes in its future.

Multicoin Capital Injects $430m Venture Fund III for Blockchain Startups

Cryptocurrency investment firm Multicoin Capital has announced the launch of $430 million Venture Fund III to help startups focusing on decentralized autonomous organizations (DAOs), open finance, and Web3 infrastructure.

In this round of funding, the firm said Venture Fund III would invest between $500,000 and $25 million in early-stage blockchain projects or companies, adding that it may invest up to 100 million US dollars or more in supporting mature projects with potential market influence in the future.

Samani, managing partner at Multicoin Capital, commented on the latest move and said, “We are continuing to invest at a fairly rapid pace, issuing, on average, probably one term sheet per week or more for a long time like over a year… We invest across market cycles, we find assets that we think are very exciting and we buy them and then hold them forever.”

Founded in 2017, Multicoin Capital is a thesis-driven investment firm that invests in cryptocurrencies, tokens, and blockchain companies reshaping trillion-dollar markets.

Multicoin Capital is the lead investor in data DAO project Delphia, which closed a $60 million Series A in June.

In May, Crypto Valley Venture Capital (CV VC), a Switzerland-headquartered private venture capital company, announced that it has launched African Blockchain Early-Stage Fund, which targets blockchain startups from across the continent.

Multicoin Capital's Vision for 2024: Embracing AI, Crypto, and Web3 Innovations

Multicoin Capital, a leading crypto venture capital firm, recently outlined its excitement and predictions for 2024, providing a glimpse into the future of the crypto landscape.

Stablecoin-Powered Remittances Transforming Emerging Markets

Multicoin Capital anticipates a significant impact of stablecoins in the remittance sector, especially in emerging markets. High costs and limited accessibility have historically plagued remittances. Stablecoin utilization, particularly in traditionally inaccessible corridors, could revolutionize this space by significantly lowering costs and increasing efficiency. The firm foresees the rise of consumer-facing remittance apps and B2B solutions for Money Transfer Operators (MTOs) leveraging stablecoins.

The Shift from Crypto as a Product to an Underlying Power

2024 is expected to witness a paradigm shift where crypto transitions from being the primary product to a fundamental force powering diverse applications. This change is evident in various sectors, from mapping and GPU marketplaces to neobanks and reward systems. For instance, Hivemapper and Render Network are leveraging crypto to incentivize contributions and address GPU shortages. Similarly, major corporations like Nubank and Starbucks are integrating crypto into their loyalty and rewards programs.

On-Chain Data and Social Applications

The on-chain data landscape is set to explode in 2024, with decentralized social protocols expected to generate substantial data. This surge will necessitate a nuanced approach to managing and contextualizing this data, particularly in social applications. The challenge lies in adapting the universal graph of on-chain social data to cater to diverse social contexts, a task that demands innovative solutions.

Innovative Token Distribution Mechanisms

Multicoin Capital highlights the evolution of token distribution methods as a key driver for crypto adoption. From ICOs to liquidity mining, each bull market in crypto has been spurred by novel distribution techniques. 2024 might see the rise of DePIN – rewarding token distribution for building productive assets – and Points systems, incentivizing product use before finalizing token economics.

The Crypto Funding Landscape in 2024

The broader crypto funding environment appears optimistic for 2024. Despite a sharp decline in 2023, firms like Coinbase Ventures and Galaxy Ventures are gearing up for renewed activity, focusing on areas like infrastructure, gaming, and AI-integrated applications. This bullish sentiment is shared across the industry, with firms like Animoca Brands and HashKey Capital also expressing positive expectations. The anticipation of a new bull market, driven by innovations in Web3 and AI, is evident.

The Role of AI and New Players in the Market

AI’s integration with crypto is a focal point of excitement for 2024. Multicoin Capital sees a substantial opportunity in addressing the GPU shortage and expects a surge in AI-driven crypto applications. Furthermore, the emergence of new neobanks, DeFi primitives, payment apps, and DEXs is likely, filling gaps left by centralized counterparts. These advancements are expected to offer enhanced user experiences, rivaling traditional financial services.

Conclusion

As we step into 2024, the crypto and blockchain industry is poised for transformative changes. The integration of AI, innovative token distribution methods, and the evolution of crypto from a standalone product to a foundational element across various sectors heralds a new era of growth and opportunity. Multicoin Capital’s insights, coupled with industry-wide optimism, paint a picture of a dynamic and evolving landscape, ready to embrace technological advancements and redefine the future of finance and digital interaction.

Multicoin Capital invests in Wormhole to enhance crypto interoperability

Multicoin Capital, a prominent venture capital firm specializing in blockchain and cryptocurrency investments, has revealed its participation as a co-lead investor in a $225 million funding round for Wormhole, a key player in the multichain space. The funding round was completed late last year but has only been officially announced now, coinciding with the launch of Wormhole’s native token, W token.

Wormhole is widely recognized for its full-stack interoperability platform, which goes beyond being just a bridge. It serves as a development platform that enables various applications across different categories to leverage its capabilities. These include multichain decentralized finance (DeFi) protocols and applications such as Aave, Circle USDC, Hashflow, Pike, and Magpie, as well as multichain governance solutions like Uniswap. Wormhole also supports token bridges, multichain oracle feeds, in-wallet bridging, and multichain non-fungible tokens (NFTs), among others.

The diversity of applications built on top of Wormhole is a major factor that excites Multicoin Capital. Despite its early stage, Wormhole has already facilitated the bridging of over $41 billion in assets. This achievement, coupled with its support for nearly 30 disparate chains, positions Wormhole as an extremely robust and versatile bridging solution. The platform is compatible with major Ethereum Virtual Machine (EVM) chains, as well as Near, Move-based chains, and Solana.

Wormhole’s commitment to providing an exceptional user experience (UX) is evident in its offerings. One of its crucial use cases is asset-pegging, which is facilitated through front-ends like Portal. In addition, Wormhole Connect, a front-end widget developed by Wormhole, simplifies the acceptance of deposits and withdrawals from any asset on any chain. This feature enables derivatives decentralized exchanges (DEXs) like Drift to offer a UX comparable to centralized exchanges (CEXs) such as Binance, OKX, Bybit, and Coinbase International. Users can easily deposit any asset into Drift as collateral, regardless of the chain it originated from. This frictionless cross-chain UX sets Wormhole apart in the industry.

Recently, Wormhole introduced Native Token Transfers (NTT), a framework that allows tokens to seamlessly move across chains using a burn-and-mint mechanism instead of the traditional locking mechanism. This innovation reduces gas costs, lowers latency, and enhances security for end-users. Notably, NTT-enabled tokens seamlessly integrate with Wormhole Connect, eliminating the need for users and application developers to worry about the underlying mechanics.

Another noteworthy feature of Wormhole is its support for Circle’s Cross-Chain Transfer Protocol (CCTP), enabling the movement of USDC across chains. By supporting asset-pegging, native-token transfers, and CCTP, Wormhole covers all three configurations for moving assets across chains. Its single software development kit (SDK) makes it easy for developers to integrate and support all asset configurations.

Looking ahead, Wormhole is fully committed to enhancing verification processes in bridging systems. Historically, bridging systems have relied on varying degrees of trust to facilitate multichain verification. However, Wormhole is taking a different approach. The platform recently announced its focus on zero-knowledge (ZK) verification technology, aiming to eliminate the need for trust in the verification process. This move will bring numerous benefits, including improved UX, developer experience (DevEx), and overall security.

Multicoin Capital has expressed its admiration for the Wormhole team, praising their meticulous approach in building what they believe to be the leading asset bridge and multichain development platform. The firm is confident in Wormhole’s potential and is grateful for the opportunity to support the team’s vision.

In conclusion, Multicoin Capital’s investment in Wormhole signifies the growing importance of secure and flexible interoperability platforms in the crypto industry. With Wormhole’s diverse range of applications, extensive chain support, commitment to UX, and adoption of ZK verification technology, the platform is well-positioned to drive the multichain revolution forward.