The fund will be used to support a “major technological and narrative shift” in the expansion of the Neutron smart contract platform.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
2 mins read
Cosmos-based smart contract blockchain Neutron has secured a $10 million boost from a seed funding round. The round was co-led by venture firms Binance Labs and CoinFund, while a group of other investors also participated. Joining the funding round are the likes of Delphi Ventures, LongHash and Nomad. Although the blockchain did not disclose its valuation, the round was still impressive, considering how difficult the crypto fundraising environment is at this time.
According to Avril Dutheil, a Neutron core contributor, the fund will be used to support a “major technological and narrative shift” in the expansion of the Neutron smart contract platform.
Dutheil notes that the new funding is expected to drive more attention toward the Cosmos ecosystem. That, he claims, is because Neutron remains an indisputable “pioneer” in developing smart contract technology. So, to maintain its pioneer status, Neutron will seek to use the funding to provide cross-chain, smart contract applications for the Cosmos network, which features over 50 interconnected, app-specific blockchains.
The funding is also expected to help the network to begin developing what it calls the Atom Economic Zone. The zone is an ecosystem on the Cosmos platform that will guarantee safety for users who transact across different blockchains. Dutheil says in part :
“We’ve certainly put a lot of effort into spearheading these initiatives to form a sort of privileged trade zone for DeFi.”
Neutron’s expansion goals also include integrating a new feature called “Replicated Security”. The feature entails a “shared security model” that protects new development projects launched on the Cosmos Hub.
As earlier mentioned, crypto fundraising has reduced drastically recently. But that is not exactly surprising given the rate at which regulators are clamping down on the crypto industry. This month, US federal regulators came after the two biggest exchanges in the game: Binance and Coinbase. Therefore, there is some sort of apprehension from crypto firms altogether, and justifiably so.
Nonetheless, Dutheil insists that Cosmos has taken the right steps to ensure that it would not run afoul of regulators. To this end, he claims that the Neutron tokens are not available to US investors on exchanges. Instead, they would operate within designated “safe harbours”, he noted.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
