Venture funds ramp up investments in decentralized derivative exchanges

Venture funds have increased investment in decentralized platforms for trading crypto-derivatives, according to data from analytics firm Messari.

Since the start of the third quarter, five projects have received a total of more than $5.8 million in funding.

VCs are racing to fund decentralized derivative platforms

In the last 2 weeks alone 5 projects have received funding

Once these platforms go live expect a lot of capital to be thrown their way either through liquidity mining or outright purchases of the native tokens pic.twitter.com/K4B0KAzv7G

— Jack Purdy (@jpurd17) August 10, 2020

Investments have come from among the industry’s largest funds, including Polychain, Pantera, FBG, Dragonfly.

Some projects have already brought their products to market, but most are still in development. After their launch, analysts expect additional inflows of capital.

Among those in operation is the DeFi platform Opyn, having lost $371 000 in a recent hack. In the previous quarter it raised $2.2 million. By early August, nominal trading volume on Opyn had surpassed $50 million, Messari noted.

FutureSwap developers launched an alpha version of the platform several months ago. At that time the exchange led the sector in daily trading volume with more than $7 million. Later, developers prematurely halted testing due to demand exceeding expectations.

Analysts say the rising interest in decentralized platforms is also reflected in the price of their internal tokens. For example, FinNexus (FNX) and Auctus (AUC) rose 300% and 200% respectively in a month.

As of the end of March, Polychain Capital’s net asset value over 39 months had risen 14.3-fold, despite a 60.4% decline in 2018.

exceeded 15,000%, beating BTC on that measure.

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