Blockchain Developers Unveil $50 Million Fund to Boost Wormhole Adoption

A $50 Million Fund to Accelerate Wormhole Adoption

A $50 million fund has been launched to support startups utilizing the Wormhole cross-chain messaging protocol, as announced on May 18. The new fund, managed by Borderless Capital, has garnered the support of more than 20 blockchain development teams and venture capital firms, including Circle, Polygon Ventures, Solana Foundation, Jump Crypto, and others.

The fund aims to assist startups that are pioneering cutting-edge applications, infrastructure, or tools spanning multiple ecosystems. Its application page on the Wormhole website characterizes the fund as “anti-maxi,” advocating the need for multiple blockchains to address users’ challenges.

David Garcia, CEO and managing partner of Borderless Capital, expressed his belief that the new fund will propel the growth of the Web3 economy and enable applications to attract a wider user base, stating:

“Our goal is to empower builders to transcend the limitations of individual ecosystems, paving the way for blockchain applications and protocols to realize their full potential.”

Understanding Wormhole: A Cross-Chain Messaging Protocol

Wormhole serves as a cross-chain messaging protocol facilitating communication between various blockchain networks. It is commonly employed to bridge assets from one network to another. For instance, users can leverage Wormhole to transfer Ether (ETH) from the Ethereum network to the Solana network. The announcement highlights that Wormhole is interconnected with over 20 different networks.

Several other cross-chain messaging protocols exist, including LayerZero, Celer, and deBridge, among others.

Expanding Partnerships and Controversies

Wormhole has expanded its network of partners in recent months. In January, renowned crypto exchange Uniswap selected Wormhole as the official bridging protocol for cross-chain governance between Ethereum and the BNB Network. Furthermore, on April 26, Wormhole integrated with Circle’s Cross-Chain Transfer Protocol, simplifying transfers of USD Coin (USDC) from Ethereum to Avalanche.

However, Wormhole has faced security controversies in the past. In February 2022, its Solana bridge suffered a hack that resulted in $321 million in losses. The developers subsequently rectified the vulnerable code that led to the exploit and reimbursed all affected users.