According to a blog post, Alameda Research has announced a $20 million investment in Reef Finance. The investment amount will be employed in acquiring the project’s governance token, REEF. In enhancement to funding, Alameda Research will enter into a partnership with Reef. The two firms intend to develop a bridge between the Polkadot and Solana blockchains. The strategic alliance will also combine Reef with the FTX-backed Serum DEX and Raydium on Solana.
Earlier, Reef had raised $3.9 million in a private token sales round led by venture firms. It involves NGC Ventures and QCP Capital. Powered by Polkadot, Reef finance is a multi-purpose DeFi engine. It offers several functions like liquidity provision and performance aggregation between multiple yield farming and lending platforms. Further, it extends support for various blockchains. Moreover, it unites crypto traders on a single platform and backs both centralized and decentralized exchanges. Reef that lately expanded its team, views to strengthen its protocol further for the mainnet release with fresh capital at hand.
REEF Token’s Price Surges After Alameda Research’s Investment
The $20 million investment by Alameda Research in Reef occurs after a $40 million investment in Solana-based lending platform Oxygen and $50 million in Maps.me. It is a mapping application with more than 140 million users globally. With Alameda Research on board, Reef would also execute cross-chain integrations with Serum on Solana. Serum is a Decentralized exchange developed on Solana started by a group involving some Alameda team members. Reef CEO Denko Mancheski advocated that additional funds would support the firm grow DeFi applications for the Reef blockchain.
Furthermore, it’s worth noting that Reef is the first cross-chain DeFi operating system developed on Polkadot. Reef became the first Polkadot-powered project to debut on the Binance Launchpool in December. The REEF token’s total market capitalization surpasses $500 million as its token jumped 30.82% in various hours of Alameda’s investment announcement. Since the start of the year, the price of REEF has surged by 150% from $0.014954 to $0.037808 at the press time.
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