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A $50 million fund has been established to support startups utilizing the Wormhole cross-chain messaging protocol, as announced on May 18. This new fund is managed by the venture capital firm Borderless Capital and is supported by more than 20 other blockchain development teams and venture capital companies, including Circle, Polygon Ventures, Solana Foundation, Jump Crypto, among 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 (@wormholecrypto) May 18, 2023
The fund aims to assist startups that are “developing innovative applications, infrastructure, or tools that operate across multiple ecosystems,” as stated on its application page on the Wormhole website, which also characterizes the fund as “anti-maxi,” advocating the notion that multiple blockchains are necessary to address users’ challenges.
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 draw in new users:
“Our goal is to empower builders to transcend the limitations of individual ecosystems, paving the way for blockchain applications and protocols to realize their full potential.”
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Wormhole serves as a cross-chain messaging protocol, facilitating communication between different blockchain networks and is frequently employed to bridge assets from one network to another. For instance, if users wish to transfer Ether (ETH) from the Ethereum network to the Solana network, they can utilize Wormhole. The announcement indicated that it connects to over 20 distinct networks.
Other cross-chain messaging protocols include LayerZero, Celer, deBridge, and several others.
Related: Uniswap debate between bridging protocols lays bare security concerns
Wormhole has broadened its network of partners in recent months. In January, the crypto exchange Uniswap selected it as the official bridging protocol for its cross-chain governance between Ethereum and BNB Network. Additionally, on April 26, Wormhole integrated with Circle’s Cross-Chain Transfer Protocol to facilitate easier transfers of USD Coin (USDC) from Ethereum to Avalanche.
Nonetheless, Wormhole has also faced scrutiny regarding its security in the past. Its Solana bridge was compromised in February 2022, resulting in losses amounting to $321 million. Developers subsequently corrected the vulnerable code that led to the exploit and reimbursed all affected users.
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