Crypto startup EigenLayer received $100m funding despite VC downturn

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VC agency Andreessen Horowitz has made a $100 million funding within the crypto startup EigenLayer, demonstrating continued confidence in blockchain from main buyers. 

The funding comes regardless of a notable decline in VC circulation into the sector. Within the third quarter of 2023, enterprise capital investments in crypto hit a report low since 2020. 

Based by former College of Washington affiliate professor Sreeram Kannan, EigenLayer a brand new idea of “restaking,” which boosts the safety mechanism of Ethereum. The method has quickly gained recognition and allows rising tasks on Ethereum to boost networks. 

The funding announcement got here straight from the businesses concerned, with Andreessen Horowitz performing because the unique investor on this spherical. This follows a $50 million funding spherical in March, spearheaded by Blockchain Capital. Regardless of inquiries, Kannan has not disclosed the present market valuation of EigenLayer.

Crypto staking has come below regulatory scrutiny. The apply includes customers depositing or staking tokens to take part in community validation and transaction verification. SEC Chairman Gary Gensler has expressed issues over whether or not staking digital property may infringe upon federal securities legal guidelines.

Addressing regulatory issues, Kannan emphasized that EigenLayer’s mannequin features extra as a market for restaking actions reasonably than partaking within the direct staking operations which have attracted regulatory oversight. This distinction might be essential in navigating the advanced regulatory atmosphere surrounding blockchain and cryptocurrency ventures.

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