Wormhole Attains $2.5 Billion Valuation after $225M Investment; Launches Wormhole Labs Amid Legal Controversies
Summary:
Wormhole, a cross-chain protocol, has received an investment of $225 million, leading to a $2.5 billion valuation. Key investors include Brevan Howard, Coinbase Ventures, and Multicoin Capital, among others. The company also introduced Wormhole Labs, which focuses on fostering cross-chain development. After a hack resulting in a $321 million loss, venture capital firm Jump Crypto committed to restoring the lost funds. A lawsuit has been filed against Jump Trading, accusing them of price manipulation for sizable profits, though these claims have yet to be confirmed in court.
A substantial investment of $225 million has been injected into the cross-chain protocol, Wormhole, resulting in a valuation of $2.5 billion, as of the Nov. 29 communication. The leading investors in this round were entities such as Brevan Howard, Coinbase Ventures, Multicoin Capital, Jump Trading, ParaFi, Dialectic, Borderless Capital, and Arrington Capital. The Wormhole Foundation has also unveiled Wormhole Labs, an independent tech firm exclusively devoted to the creation of products, tools, and standards to expand cross-chain operations and progression. At present, Wormhole's cross-chain communication technology is employed in asset bridging, oracle data feeds power, and non-fungible token transfers. After making its debut in 2021, Wormhole has overseen over $35 billion in transactions, becoming a platform that handles over 2 million daily cross-chain messages spanning more than 30 chains, as per the developers' claim. In February 2022, Wormhole fell prey to a hack, causing a loss of over $321 million due to an unauthorized minting glitch on its Ethereum-Solana bridge. Jump Crypto, a venture capital firm, swiftly committed to restoring over $320 million in funds that were lost in the hack. In a separate incident in May, investors associated with the Terra Luna ecosystem lodged a lawsuit against Jump Trading, accusing the high-frequency trading firm and its CEO, Kanav Kariya, of price manipulation of TerraUSD for approximately $1.3 billion in profits. The validity of the allegations is yet to be affirmed by a court.
Published At
11/29/2023 2:42:21 PM
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