Crypto fund DragonFly Capital introduced the launch of a brand new $225 million fund to spend money on initiatives throughout the crypto house.
Following the success of the unique $100 million fund kickstarted in late 2018, the Dragonfly Fund II will goal 4 potential areas: decentralized finance (DeFi) protocols, non-fungible token initiatives, Ethereum Layer 2-based companies, and centralized finance (CeFi) platforms.
The San Francisco-based enterprise capital fund have been early backers of notable initiatives reminiscent of ByBit, Compound, Celo, and Maker, amongst others. A lot of DragonFly Capital’s previous investments have been centered on the DeFi house, however because the crypto house continues to quickly evolve, it’s clear that the fund is exploring new alternatives.
In a blog post, they acknowledged the danger of betting on unstable, “frothy” areas like NFTs. Non-fungible tokens have been all the fashion this 12 months, with the trade gaining mass-popularity as cryptos rallied to file highs. Driving on the recent NFT wave, digital market OpenSea raised $23 million in Collection C funding earlier this month.
As soon as the novelty wears out, nonetheless, it’s unsure whether or not the trade can proceed its parabolic development. Regardless of such considerations, DragonFly Capital reiterated that these rising areas have the potential to develop into an “essential part of the digital future.”
Enterprise capital large Sequoia will again the fund as a strategic restricted accomplice, alongside OKEx, Huobi, Bitmain and Bybit. “Along with lots of the know-how and cultural leaders from US know-how corporations and VCs, we’re in an unbelievable place to assist unite and push the crypto motion ahead,” mentioned Hasseb Qureshi, managing accomplice at DragonFly Capital.