Blockchain Founders Fund has raised $75 million for web3 adoption; Digital Currency Group’s losses exceeded $1 billion; Coinbase announces suspension of BUSD trading beginning March 13.
Blockchain Founders Fund has raised $75 million for web3 adoption.
Blockchain Founders Fund, the venture capital fund promoting the adoption of Web3 and blockchain technology, announced that it has raised $75 million in funding from companies such as Polygon, Ripple, Octava, NEO Global Capital, Appworks, GSR, LD Capital, Metavest Capital.
According to the announcement, the fund will focus on supporting projects that promote the global adoption of web3 and blockchain technology. The fund has already invested in more than 100 projects, including startups such as Altered State Machine, Splinterlands, GRID, Krayon and Magna.
Blockchain Founders Fund manager Aly Madhavjiü stated that the venture capital fund will expand to more than 200 companies in the next year.
Talking about the requirements and ways that web3 startups can seek funding from the Blockchain Founders Fund, Madhavji stated that they will focus on strong teams and web3 companies with the ability to realize their visions. However, projects should be projects that generate revenue over time or that reveal clear ways to make money. Madhavji added:
“There is a high level of competition, regulatory uncertainty and limited path for deals in the ecosystem. To meet these challenges, we are focusing on investing in high-quality startups with strong foundations.”
Digital Currency Group’s losses exceeded $1 billion.
The crypto industry was deeply shaken after the collapse of the FTX exchange in 2022. While many investors lost billions of dollars with the FTX scandal, dozens of crypto companies were dragged to the brink of bankruptcy as a result of FTX investments.
DCG lost at least $1 billion
Among the companies heavily impacted by its collapse from FTX is the cryptocurrency venture capital conglomerate Digital Currency Group (DCG). DCG, which has more than one subsidiary, continues to suffer great losses as its companies slip away one by one.
DCG reported losses of over $1 billion in 2022 due to the contagion related to the collapse of crypto hedge fund Three Arrows Capital (3AC).
DCG reportedly lost $1.1 billion last year, according to its fourth-quarter 2022 investor report, and the results reflect the impact of the Three Arrow Capital default on Genesis and the negative impact of falling crypto prices.
Coinbase announces suspension of BUSD trading beginning March 13
Coinbase announced on Twitter on February 27 that it will suspend stablecoin transactions on March 13. Listing standards were also mentioned in the tweet.
According to the post, the decision will apply to Coinbase.com, Coinbase Pro, Coinbase Exchange and Coinbase Prime. The stock market made the following statement:
“You will retain access to your BUSD funds and continue to have the ability to withdraw your funds at any time”
According to Coinbase’s website, the digital asset listing group votes for assets to be listed “through a rigorous review process that evaluates assets against legal, compliance, and technical security standards.” However, a tracking system is also in place to see if an asset continues to meet the standards.
Similarly, the New York State Department of Financial Services targeted Paxos and ordered the company to stop issuing BUSD. These developments caused the market value of BUSD to drop by $2 billion in just a few days.
After these developments, Coinbase said:
“We don’t know what aspects of BUSD are of interest to the SEC. All we know is that stablecoins are not securities.”