- Arrington Capital is launching a $100 million fund to invest in the Algorand ecosystem
- Algorand is a Proof-of-Stake blockchain platform that supports smart contracts functionality
- Algorand was founded by renowned cryptography expert Silvio Micali
Arrington Capital announces $100 million fund to invest in Algorand-based projects
Algorand is a Proof-of-Stake blockchain platform founded by renowned cryptography expert Silvio Micali. It can handle over 1,000 transactions per second and supports smart contracts functionality. The platform also allows users to create custom tokens called Algorand Standard Assets (ASA).
Michael Arrington commented on the momentum that Algorand is gathering:
“We are inspired by the traction that Algorand has in the market right now. With unmatched tech, robust developer resources and a vision for long term sustainability, Algorand is empowering its community to more easily create the future of finance.”
Arrington told crypto news publication CoinDesk that he is making a personal investment in the $100 million fund.
Like most smart contract-powered blockchain platfoms, Algorand has big ambitions in the DeFi sector. However, it’s DeFi ecosystem is practically non-existent when compared to the likes of Ethereum and Binance Smart Chain. Arrington Capital and other investors are attempting to change that by providing the capital necessary to bring top-tier developers and teams over to Algorand. According to a press release by the Algorand team, there’s over $500 million in capital committed to backing initiatives built on the platform.
Algorand has been seeing some adoption on the front of security tokens – for example, cryptocurrency wallet firm Exodus is using the Algorand blockchain to issue their security token. The platform is also seeing some adoption in the remittances sector, with Bnext working on an Algorand-based remittances offering serving the Latin America and Spain markets.
Algorand’s mainnet went live in 2019, and its native asset ALGO has established itself as one of the 50 largest crypto assets by market capitalization. ALGO is currently the 31st largest cryptocurrency, thanks to its market cap of $3.26 billion.
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