Related: Spar supermarket in Switzerland starts accepting Bitcoin paymentsVCs seen as enablers of Bitcoin growthAccording to Hu, VCs bring liquidity, resources and experience to new startups while opening “up all the institutional ideas and connections.” He said that those were important additions to Bitlayer’s resources as well, noting that “we wouldn’t have that if those people didn’t invest in us.”He also argued that VCs tend to back long-term infrastructure efforts rather than speculative projects like memecoins or non-fungible tokens.
That experience was echoed by Walter Maffione, lead engineer at Lightning Network-based decentralized exchange (DEX) Kaleidoswap, who told Cointelegraph that the protocol started as an open-source project and raised a pre-seed investment from Fulgur Ventures and Bitfinex Ventures.“Those funds were used to pay open-source developers and accelerate protocol development, not to build a token or capture governance rights,“ he said.
He claimed that sidechains like the Liquid Network and newer protocols such as e-cash and federations or Ark “are not widely used” but “are at least interesting.” He recognized that those “do not involve a staked token, promising yield,” with projects that have those features, “just waiting for rug pulls and issues.”“We don’t invest in that area,“ he added.
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Author / Journalist: Cointelegraph by Adrian Zmudzinski
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