$72M New Crypto VC Fund Gets Backing from Billionaires like Paul Tudor Jones & LL Cool J

$72M New Crypto VC Fund Gets Backing from Billionaires like Paul Tudor Jones & LL Cool J

A new $72 million venture capital crypto fund has been announced by private equity veteran Glenn Hutchins, his son Jame Hutchins and partner Travin Scher, who previously ran investments at Digital Currency Group.

The fund has drawn the interest of several big names, including hedge fund billionaire Paul Tudor Jones; James Todd Smith, better known as LL Cool J; and Indra Nooyi, the former CEO of PepsiCo.

Other high-profile investors in the fund include billionaire co-founder of Apollo Group, Josh Harris; SoFi CEO and Twitter COO, Anthony Noto; former CEO of TD Ameritrade, Joe Moglia; owner of the Florida Panthers hockey team, Vincent Viola; and venture capitalist Geoff Yang.

Crypto, according to Glenn Hutchins, “is the proverbial next big thing.”

Hutchins first began investing in crypto back in Jan. 2016 when the price of Bitcoin was around $400. Today, Bitcoin is worth $37,000. Hutchins said,

“Crypto promises not just to revolutionize finance but also to invent a new computing paradigm that will be as transformational as the PC, the internet, mobility, and the cloud.”

The fund has been in the making for the past year and was launched out of North Island Ventures, a New York-based VC firm founded in 2017.

Scher took to Twitter to share information about this venture, which has already made investments in seven projects, including Dapper Labs, that created gaming dApp Crypto Kitties, Flow Blockchain, and NBA Top Shot, startup Nori which is working on a carbon removal marketplace, and Axelar focused on scaling cross-chain communication.

“We believe that crypto offers solutions to some of the world’s most pressing problems,” said Scher. Through this fund, they are supporting those that are bringing these solutions to life.

“Year one has been a blast, and we’re just getting started,” tweeted Scher.

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Author: AnTy

Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited

Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited

“Defi has incredible potential,” says Mark Cuban but cautions that much like derivatives, “risk never leaves the system” here as well.

Ethereum is notorious for its extremely high fees when the network activity amps up.

In January, with ETH and DeFi tokens enjoying an uptrend and offering buy the dip opportunities, too much activity is making the platform costly to use. Popular DEX Uniswap, which has long been the biggest gas guzzler, has spent $28.3 million in gas in the last 30 days.

“The high gas costs are a direct result of *huge demand for trading on Uniswap,” said Hayden Adams, the creator of Uniswap, earlier this month when the fees skyrocketed yet again.

“Scaling is a huge problem. It absolutely sucks small transactions are sometimes priced out during volatility.”

But it looks like it’s not only the smaller users that are feeling the brunt of the hefty fees; even the billionaires are complaining. This billionaire, is none other than crypto skeptic Mark Cuban.

Cuban mentioned that gas was always an issue when Haralabos Voulgaris, Head of Quantitative Research at Dallas Mavericks, suggested there being real value in sending money over a decentralized, permissionless network. Cuban feels,

“Except the gas is always an issue. Just the cost of moving crypto to AAVE is crazy expensive, and the number of non crypto options will increase.”

With the Shark Tank investor who finds more worth in bananas and compares crypto trading with the dotcom bubble,  name dropping popular DeFi project, AAVE got the CT excited AAVE 10.31% Aave / USD AAVEUSD $ 140.95
$14.5310.31%
Volume 509.28 m Change $14.53 Open $140.95 Circulating 12.2 m Market Cap 1.72 b
8 s Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited 1 d A ‘Massive Transfer of Wealth Among Traders’ Sees DeFi Tokens Winning the Round 1 w Three Arrows Capital Holds 36,969 Bitcoin ($1.24B) via An Over 6% Stake in GBTC
.

“One of the most high-profile billionaires trying out DeFi. I am liking this trend,” noted one such DeFi investor.

However, just because Cuban publicly doesn’t find worth in crypto doesn’t mean he isn’t trying things out, as he responded,

“I don’t think people realize I try to test and use all this stuff and have for years. I still have crypto from the early days of coinbase. I’ve never sold anything.”

As for decentralized finance itself, Cuban says, “DeFi has incredible potential.” Still, according to him, much like derivatives, “risk never leaves the system” as it faces the risk of a dominoes-like collapse. Cuban said on the prospect of Defi fixing the problem of underbanked,

“It’s a long way off for the unbanked. Most deal with cash or lack compute power so they need intermediaries. That’s costly. As DeFi grows away from overcollaterization, it will be interesting to see if access expands or contracts.”

But here, the CT takes over and points out that while “the system is only as strong as its weakest link.” We do, in fact, need better insurance models; the missing point is “unlike tradFi, DeFi is a perfectly transparent system that allows you to measure risk in real time,” said Santiago R Santos, a partner at Parafi Capital.

The DeFi space has grown to over $20 billion in total value locked (TVL) as the DeFi project continues to grow and rise in value. This week, the top US banking regulator actually talked about the opportunities of DeFi and regulators needing to be ready for it.

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Author: AnTy