Several well-known investors in the cryptocurrency industry bought balancer tokens valued at $ 24.25 million to drive the introduction of the Automated Market Maker (AMM).
The fundraising was directed by Blockchain Capital, Fintech Collective, LongHash Ventures, Fenbushi Capital, Continue Capital and Kain Warwick, the founder of the DeFi protocol Synthetix. The funds will be used to strengthen Balancer’s role as a leading infrastructure provider in the DeFi market.
“By enabling the most flexible and composable liquidity pools in the AMM area, the balancer protocol is uniquely positioned as a central infrastructure component for decentralized financial protocols and applications.” He said Aleks Larsen, Blockchain Capital Investor. And he added:
“We see this aspect of the technology in Balancer as a strong long-term indicator as protocols that are largely integrated into high-end systems can trigger powerful network effects and defensive trenches.”
Balancer has historically received funding from top venture capital companies. Last November, Alameda Capital and Pantera Capital supported the DeFi project. In March of this year Three Arrows Capital and DeFiance Capital ran a $ 5 million fundraiser for the company.
Balancer has recently caused a stir after Cointelegraph Markets Pro’s VORTECS ™ data indicated the start of a new bull cycle for the project. Although much of that bullish outlook has faded after last week’s market correction. The price of the BAL token has fallen 17% in the last week.
The balancer protocol is set to become the main source of liquidity in the decentralized financial market. The team has focused most of its efforts on driving adoption in the Asia Pacific region, which could emerge as a hotbed for new DeFi products.