Venture capital giant Sequoia Capital is starting a new crypto fund to support digital assets with hundreds of millions of dollars.
In a new article penned by top executives, the tech investment firm says they are creating a $500-600 million sub-fund focused primarily on liquid tokens, coins with a supply that changes each time they are bought or sold.
Sequoia Capital says that while they’ve invested in digital assets in the past, they never took advantage of their use cases, such as staking them, using them for governance purposes, or using their decentralized exchange platforms to trade tokens.
With this announcement, the company says that’s about to change due to popular demand.
“While we’ve invested in both equity and tokens over the last five years, many have asked that we take a more active role in managing our tokens, including staking them, providing liquidity, participating in governance and trading through their platforms…
Today, we are doing just that with a new $500-600M sub-fund focused primarily on liquid tokens and digital assets… Our goal with this fund is to participate more actively in protocols, better support token-only projects, and learn by doing ourselves.”
The venture capital titan helped popular crypto exchange FTX draw a massive 11-figure evaluation last year as it and other blue-chip investors, such as leading assets manager BlackRock, poured hundreds of millions of dollars into it through two rounds of fundraising.
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