Ethereum’s project fundraising platform Gitcoin has announced a $11.3 million funding round led by Paradigm.
After the round, Gitcoin is set to spin out of Ethereum development studio ConsenSys to become more decentralized.
Paradigm is the crypto venture capital fund founded by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang. Other investors participated in the round include Electric Capital, IDEO, Naval Ravikant and Balaji Srinivasan, among others.
Founded by Kevin Owocki in 2017, Gitcoin maintains an open marketplace to connect developers and donors, while providing opportunities for builders to generate relationships and contribute to open-source projects.
As a kind of kickstarter for Ethereum-based Web 3.0 projects, Gitcoin has coordinated the distribution of more than $18 million in funds as part of its grants program. It has helped fund decentralized exchanges Uniswap and 1inch, crypto media Decrypt and DeFi publication The Defiant, among others.
The fresh capital gives Gitcoin more independence to grow the Ethereum and the Web 3 ecosystem. “Usually folks love the idea of growing their ecosystem, they don’t love the idea of growing the general ecosystem,” Gitcoin COO Kyle Weiss told Decrypt.
ConsenSys Wins JPMorgan, UBS, Mastercard Backing
The news comes shortly after Ethereum blockchain development studio ConsenSys raised $65 million from JPMorgan, UBS, Mastercard, and other institutions.
“We had the ability to build out the things we wanted and do it at a time when it might have been hard to raise VC capital,” said Joe Lubin, who founded ConsenSys and was a co-founder of Ethereum.
Other investors include Protocol Labs, the Maker Foundation, Fenbushi Capital, quantitative crypto trading firm Alameda Research, and China’s Greater Bay Area Homeland Development Fund.
ConsenSys’ funding round comes as businesses are increasingly excited about the potential of blockchain technology. Recently, payment giant Visa said it will use the public Ethereum network to settle transactions in USD Coin (USDC). Also, ConsenSys is helping Australia, France, Hong Kong and Thailand develop central bank digital currencies.
Meanwhile, the Ethereum network is undergoing a major transformation, with a major aim to speed up transaction times. Ethereum’s upcoming system-wide upgrade dubbed “Berlin,” is set to deploy on mainnet on 15 April. The Berlin upgrade is part of the transformation, seeks to provide answers to increased fees and complex transaction processes in the network.
Swiss bank UBS is reportedly exploring to offer cryptocurrency investments to wealthy clients. This move comes after more investment banks, including Goldman Sachs and Morgan