Indian crypto exchange Nischal Shetty, co-founder of WazirX, is in advanced stages of negotiations to raise a first round of funding for its new project, sources familiar with the matter said. This thread told TechCrunch.
Shetty is raising $20 million to $30 million in a seed funding round for her blockchain startup Shardeum, the sources said, requesting anonymity because of ongoing and private discussions. The proposed funding round values the startup at around $200 million, the sources added.
Sources say Spartan Group, Struck Crypto, Big Brain Holdings and Cogitent Ventures are among the investors who are catching their attention.
Shetty confirmed that the startup is in talks to raise capital, but said the round isn’t over yet.
“We are currently working with top VCs in an ongoing funding round. While it hasn’t closed yet, we expect to see tremendous support for Shardeum and our mission to make blockchain technology faster, smarter, and easier to use for everyone,” he said. said in a statement through a spokesperson.
“We look forward to sharing more insights on how we are working to accelerate the expansion of our team and accelerate Web3 adoption for developers and their users.”
Shardeum is trying to solve the dilemma that affects most blockchains, where they have to prioritize between scalability, security, and decentralization, but at best they can only choose two of these attributes. .
Shardeum is using a technique called sharding to divide the network into shards, resulting in multiple transactions being processed, verified and validated in parallel, the startup explained in an investor paper. private, reviewed by TechCrunch.
The startup’s blockchain of the same name, currently in a testnet, aims to be compatible with EVM and uses proof-of-stake and proof-of-quorum consensus mechanisms to reduce network operating costs and relies on three types of nodes. – validator, storage and standby – in its network, it said in the investor floor.
Shardeum predicts that it will be able to process more than 100,000 transactions per second with 100,000 nodes and will maintain a latency of 10 seconds, it said in the deck. The L1 blockchain will also provide ways to help Ethereum developers transition to Shardeum and maintain stable gas fees, it said.
According to two sources familiar with the matter, the startup plans to initially target the Indian and emerging markets. It aims to do a mainnet launch in the quarter starting October and roll out over 500 million SHM tokens, it said in the deck.