- Cross-chain exchange platform THORSwap has raised $3.75 million in a funding round.
- The project will allocate funds for operational resources.
- THORSwap currently supports Ethereum, Binance Smart Chain, Bitcoin, Bitcoin Cash and Litecoin, with more integrations to be added in the coming months.
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THORSwap, the multi-chain liquidity platform on THORChain, has raised $3.75 million in a private token sale.
THORSwap closes private token sale
THORSwap, a decentralized token exchange across a variety of Layer 1 blockchains, has closed a $3.75 million funding round. IDEO CoLab Ventures led the increase, while other participants included Sanctor Capital, THORChain, True Ventures, Nine Realms, Proof Group, 0xVentures, Qi Capital and others.
The team said in a press release that it will allocate funds for operational resources. The project hopes to become one of the leading Automated Market Makers (AMMs) for multi-chain exchanges. Powered by THORChain, the project enables trading across multiple blockchains without relying on central custodianship or asset wrapping. The token, THOR, is used to incentivize user engagement and governance.
Instead of using encapsulated tokens, the project takes advantage of AMM-style liquidity pools to allow for cross-chain exchanges. It currently supports five networks: Ethereum, Binance Smart Chain, Bitcoin, Bitcoin Cash, and Litecoin. More are due to be added in the coming months.
Like other DeFi projects such as Sushi, THORSwap has chosen to conceal the identities of its core team, possibly in response to increased regulatory scrutiny in the space. A major contributor operating under the pseudonym THORSwap Admin said the funds will help “accelerate the launch of new products” and allow the team to further streamline cross-chain exchanges.
THORSwap is one of the main projects in the THORChain ecosystem, along with other projects such as Thorstarter, THORWallet, Brokkr and DeFiSpot. With the emergence of several Layer 1 blockchain networks, THORSwap is expected to play an important role in enabling cross-chain interoperability without compromising decentralization.
The round’s lead investor, Nine Realms founder and IDEO CoLab Ventures partner, Gavin McDermott, said the project “could become a top 5 DEX pool next year.”
Han Kao, founder of Sanctor Capital, added that THORSwap has been “the undisputed market leader” in unlocking cross-chain liquidity and that it “will play an important role in shaping the future of DeFi.”
Along with the latest funding round, the project also revealed its plans to integrate additional sources of liquidity and release a partner API in the coming months.
Disclosure: Certain shareholders of Sanctor Capital also hold equity in Crypto Briefing. Han Kao is the former CEO of Crypto Briefing.
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