Sequoia Capital Is Looking to Invest Up to $600 Million in Crypto Startup Tokens – Decrypt

Silicon Valley speculation capital firm Sequoia Capital has launched a new fund to invest entirely in cryptocurrency—with up to $ 600 million to play with .
Sequoia Capital announced Thursday that the fund, Sequoia Crypto Fund, would be used specifically on its melted tokens and digital assets, and it has set digression between $ 500- $ 600 million.

Sequoia Capital, a 50-year-old firm, told Decrypt it wanted better command of its digital assets, as stake, providing liquid on a protocol, and vote in administration on networks was typically more time-consuming and unmanageable .
“ Any of the active management that you do with a token that ’ south identical different to from what you do with a share, has been more ambitious, fair from an infrastructure and rush perspective, and sol what we wanted to do is create a separate fomite that would give us a set more flexibility to do all these more crypto-native activities with the melted tokens we have, ” said Michelle Bailhe, a Partner at Sequoia Capital .

The firm added in a affirmation : “ Sequoia Crypto Fund complements our broad commitment to crypto. Our finish with this fund is to participate more actively in protocols, better subscribe token-only projects, and learn by doing ourselves. ”
“ We remain invest to working collaboratively with the crypto community, including providing ongoing accompaniment for open-source research. ”
Sequoia Capital has then far invested in Bitcoin, Ethereum, Strips Finance, Parallel Finance, Ironfish, Decentralized Social ( DeSo ), and Filecoin. It besides has invested in a count of other tokens not so far announced, according to the firm .
It said that its network in the crypto space asked it to take a “ more active function in managing ” its tokens—including staking them. Staking refers to the process of users locking-up their cryptocurrency, frequently to provide fluidity to a protocol or network, in substitution for rewards in tokens .

It can besides refer to the procedure by which the operators of proof-of-stake networks lock up their tokens to help the blockchain validate transactions.

A act of boastfully cryptocurrencies like Solana and Tezos already use this consensus mechanism, and the second-largest by market crown, Ethereum, is in the process of making the transition. proof of stake is different to Bitcoin ’ s proof-of-work procedure, which is much more energy intensifier .

Shaun Maguire, a collaborator at Sequoia, added that previously the firm didn ’ t have custody of the tokens but this investment would help. “ We view this as the last slice of crypto where we haven ’ t been able to add measure for our portfolio companies. ”
“ Sequoia has a very long-run see as an investor. We like to take 10 plus class views on trends and raw protocols, ” he added .
Sequoia Capital has already partnered with some of the biggest names in the crypto populace, including the chief executive officer of the FTX exchange, Sam Bankman-Fried, and Jack Dorsey, the co-founder of Twitter and Bitcoin fancier .
Editor’s note: This article was updated after publication to include comments from Sequoia Capital.

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