Crypto fund DragonFly Capital announced the launch of a new $ 225 million fund to invest in projects across the crypto space.
Following the success of the original $ 100 million fund launched in late 2018, the Dragonfly Fund II will target four potential areas: DeFi protocols (decentralized finance), non-fungible token projects, Ethereum Layer 2 based companies and CeFi (Centralized Finance). Platforms.
The San Francisco-based venture capital fund supported well-known projects such as ByBit, Compound, Celo and Maker at an early stage. Much of DragonFly Capital’s previous investments have been in the DeFi space. However, as the crypto space continues to develop at a rapid pace, it is clear that the fund is exploring new opportunities.
In one blog entryThey recognized the risk of betting on volatile, “foamy” spaces like NFTs. Non-fungible tokens were all the rage this year, and the industry gained popularity as cryptos rose to record highs. On the new wave of NFT, the OpenSea digital marketplace raised $ 23 million in Series C funding earlier this month.
However, once the novelty wears out, it is uncertain whether the industry can continue its parabolic growth. Despite these concerns, DragonFly Capital reiterated that these emerging spaces have the potential to become “an important part of the digital future.”
Venture capital giant Sequoia will support the fund as a strategic limited partner alongside OKEx, Huobi, Bitmain and Bybit. “Along with many of the technology and cultural leaders of US tech companies and VCs, we are in an incredible position to unite and advance the crypto movement,” said Hasseb Qureshi, Managing Partner at DragonFly Capital.