By
Mayowa Adebajo
April 25th, 2024
Li.Fi said that the fundraise will help them execute their long term strategy of getting more users into the Web3.
In the latest development, Li.Fi – the multichain liquidity and data gateway provider – raised a total of $17.5 million in Series A fundraise co-led by crypto native investment firms Superscrypt and CoinFund. This fundraise comes at a time when the global macro environment is uncertain and liquidity has been drying up.
Li.Fi Series A Funding
Li.Fi said that the fundraise will help them execute its long-term strategy. The crypto startup seeks to bring more users to Web3 by enabling tokens and orders and allowing them to trade across any chain in a seamless manner.
Li.Fi is currently betting on the growing demand for decentralized finance (DeFi) ever since the collapse of the centralized exchange FTX last year in November 2022. Furthermore, centralized exchanges are facing growing scrutiny from regulators recently. Regulators in the US shut down several crypto-friendly banks last month. In such a scenario, the importance of DeFi is growing once again.
In a research note published last month, Investment firm Bernstein noted that the revival of decentralized finance (DeFi) is once again in the work. They added that DeFi is “far more sustainable, scalable, transparent and with improving token economics.”
More Details about Crypto Startup Li.Fi
Berlin-based crypto startup Li.Fi helps developers to navigate the extremely fragmented collection of Layer 1, Layer 2, and Layer 3 blockchains. It also helps developers to navigate through the bridge platforms connecting different blockchains along with the decentralized exchanges that exist in decentralized finance (DeFi).
Li.Fi provides an application programming interface (API) to developers so that they can reach the market faster by creating prototypes. In an interview with CoinDesk, Philipp Zentner, CEO at LI.FI said:
“For anyone who wants to build on that front-end infrastructure – and the also fragmented liquidity – it’s a lot of integration overhead. And that’s a huge fallacy of sunk costs. You don’t know what is still up and running or what systems are getting breached or hacked. Systems can be out of liquidity. There might be a strategic change and you have to adopt the new ecosystem. There’s a lot of integration maintenance involved, and we take on that part by aggregating the most crucial DeFi infrastructure.”
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