DWF Labs launches a $250 million fund to promote mainstream cryptocurrency adoption.

CN
23 hours ago

Source: Cointelegraph Original: "{title}"

Dubai-based crypto market maker and investor DWF Labs has launched a $250 million liquidity fund aimed at accelerating the growth of mid to large-sized blockchain projects and promoting the application of Web3 technology in the real world.

DWF Labs plans to sign two investment agreements, one for $25 million and another for $10 million, as part of the fund.

According to an announcement shared with Cointelegraph on March 24, the initiative aims to support projects with the potential to drive real-world applications by providing strategic investments ranging from $10 million to $50 million, thereby fostering the growth of the crypto ecosystem.

Source: DWF Labs

DWF Labs' managing partner Andrei Grachev stated that the fund will focus on blockchain projects with significant "usability and discoverability."

Grachev told Cointelegraph in an interview, "We will focus on supporting mid to large-sized projects—these tokens and platforms are often the entry point for retail users into the blockchain world." He added, "However, having good technology and utility is not enough. Users first need to discover these projects, understand their value, and build trust."

He also mentioned, "We believe that strategic capital combined with real ecosystem development is key to unlocking the next wave of growth in the industry."

Similar incentive mechanisms may attract more funding for the development of blockchain projects and drive the evolution of more complex blockchain application scenarios. The fund's announcement comes more than a month after the 0G Foundation launched an $88 million ecosystem fund to accelerate AI-driven decentralized finance (DeFi) applications and autonomous agents (i.e., DeFAI agents).

New users need robust and fully functional infrastructure when interacting with their first blockchain-based applications.

Grachev stated, "This approach ensures that when new users enter the space, they encounter reliable infrastructure, strong communities, and meaningful application scenarios, rather than friction." He added, "The key is to create conditions for genuine, sustained adoption and help the next wave of users not only enter the blockchain world but also stay."

To ensure that projects can launch on a solid infrastructure, each investment will provide ecosystem growth strategies, including developing lending markets, expanding brand influence, and supporting the growth of stablecoins and decentralized finance (DeFi) activities to "deepen liquidity."

Other industry leaders attribute friction in blockchain applications to the lack of mainstream user adoption.

According to Coinbase's Senior Director of Engineering Chintan Turakhia, the current user onboarding process is complex and filled with friction points, which is a major issue for the mass adoption of cryptocurrency.

Turakhia told Cointelegraph in an exclusive interview at EthCC, "If our goal is to attract the next billion users—starting with 100 million users—we must eliminate all these friction points."

Some of the most pressing friction points include complex seed phrases when setting up wallets, paying transaction fees, and purchasing blockchain-native tokens to transact on the network.

Related: Cryptocurrency exchange Kraken is exploring $1 billion in funding to prepare for an IPO.

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