Bitcoin’s surge has caused a ripple effect which was felt across the decentralized finance [DeFi] realm as well. In the latest development, a DeFi lending protocol called Alchemix has announced securing $4.9 million in a funding round on the 14th of March.
Interestingly, this round included some names of major industry venture capital groups who poured in capital into the DeFi protocol. Some of them include digital-asset-focussed principle investment firm CMS holdings, FTX’s parent company Alameda Research, crypto hedge fund Immutable Capital, investment firm Nascent, among others.
The team behind the DeFi platform revealed that it had agreed to sell its native ALCX tokens at the price of $700 per token for the total value of $4.9 million. Furthermore, the trading price at the time of the deal, meaning on the 11th of March was between $680-$800. Alchemix also disclosed that the proceeds of this funding round have been transferred to the founders to function as personal funding.
Up until the latest round, Alchemix had not received any funding. As per the official Discord post further stated,
“This is incredibly positive for the outlook of the project offering substantial benefits: Frees up the founding team to commit to full-time development – accelerating towards Alchemix V2. Facilitated our ability to generate funding via OTC, avoiding any sell pressure on the market”
DeFi: The Hot Place For Investments
DeFi has managed to cement itself center stage as the global financial establishment disrupter, flanked by the likes of Bitcoin and Dogecoin. There is a major influx of users, developers, experienced as well as novice investors in DeFi protocols lately.
According to a new study, the accredited investors in the United States were exhibiting a trend of growing inclination towards the world of decentralized finance. This was reported by Xanglo, in its latest survey which revealed that a vast majority of 67% of respondents out of 379 accredited investors in the country have knowledge about the burgeoning space.
Out of this cohort, 90% of respondents are likely to invest in the space in the next 12 months.
DeFi has generated real, working applications that have already managed to attract billions of money and would continue to do so with proper regulations at place.