Flashbots, a company that helps Ethereum work better, got $60 million from investors. This could mean that the crypto market is getting stronger again.
Paradigm, a company from San Francisco, led the funding round according to a document filed on July 21 with the Securities and Exchange Commission.
Flashbots chose their investors in a special way.
The company had a contest to pick investors for decentralization. The investors had to pitch their ideas in a different way.
This method let the company carefully choose investors who have the same vision and goals for the future.
Flashbots is now worth $1 billion or more after receiving funding, a company representative said to Bloomberg.
What does Flashbots mean.
Flashbots is a group that studies and creates things to stop the bad effects of maximal extractable value (MEV). This is the money that network operators can make by looking at or changing the order of blockchain transactions.
The company’s software helps reduce the impact of MEV by making transactions faster and fairer on the blockchain.
The main product is called SUAVE (Single Unifying Auction for Value Expression) platform. It acts as a waiting room for transactions and also helps in building blocks for a decentralized network.
People who create software can use SUAVE to start apps within a network, like building blocks or organizing sales, that make transactions less expensive and more private than what is usually available on Ethereum and other similar networks.
The funding was successful because crypto companies have been having a hard time getting enough money, while AI has been growing really fast and getting a lot of attention from investment firms all over the world.
In the first three months of this year, the AI industry got about $18 billion in money, and some of that money was taken away from crypto companies.
Evan Cheng, who started Mysten Labs, says that AI startups are getting a lot of venture capital money just like cryptocurrency. He said this in an interview with Forkast News.
Cheng said that new cryptocurrency companies can still get money, but they might not be worth as much because of the recent drop in cryptocurrency prices.
But now it’s more difficult for new companies to get a lot of money, and only the very best ones are getting help. Cheng said: