Algo Capital Closes VC Round at $200 Million

Published on Unknown by Cryptovest Staff

The Algorand (ALGO) project performed a round of crypto-based fundraising, receiving the sum in ALGO rather than US dollars, in a novel deal of pure crypto finance.

TheAlgorand (ALGO)project made a surprising expansion move, managing to secure $200 million’s equivalent in VC funding. In a recent PR statement, the Algorand project detailed the fundraising effort, which accepted ALGO coins instead of dollar funding.

The Algorand project was an anomaly in the crypto space, in that it was immediately listed on most leading exchanges, within days of its launch. Usually, crypto startups wait for months, but Algorand quickly became influential.

Also, the brand-new project was selected to carry a part of the Tether (USDT) supply, becoming one of the few networks to transact in USDT.

Among the recent VC backers are numerous crypto finance companies, including Brainchild, NGC Ventures (the venture arm of NEO Global), Arrington XRP Capital, Eterna Capital, GSR, Cognitive Blockchain, Rokk3r Inc, Wibson, 11-11 Ventures, DG Ventures, Winslow Strong, Invermaster.

Algo Capital is Algorand’s branch dedicated to building new financial products to expand the open economy of the Algorand network.

“A key element of the NGC Ventures investment thesis is analyzing the caliber of leadership teams, be it the technical excellence, academic rigor, or business acumen. Led by luminaries across emerging technology, entrepreneurship, and investing practices, Algo Capital has world-class talent at the driving seat, and we look forward to seeing the success of its Algo VC fund,” said Roger Lim, Founding Partner at NGC Ventures.

The Algorand VC round thus resembles an ICO or a token sale, as this type of financing would be unavailable to a brand-new crypto startup.

The ALGO market price has slid significantly since the initial exchange launch, which sent the asset above $3.02. Now, ALGO hovers around $0.52, losing 16% in the past week. ALGO also slid from above 35,000 Satoshi down to the 5,000 Satoshi range, losing most of its value against Bitcoin (BTC).

ALGO will have to prove its real power through adoption, as most of its blocks are now empty. Most trading activity for ALGO is concentrated on Hotbit, a relatively unknown exchange, raising doubts about the asset’s liquidity and reliable trading.