The Defiant

Wormhole Sells $225M of Token Warrants in 2023’s Largest Crypto Raise

The cross-chain protocol was spun off by Jump Trading last month.

By: Owen Fernau Loading...

Wormhole Sells $225M of Token Warrants in 2023’s Largest Crypto Raise

Wormhole, a protocol that enables tokens and data to move across blockchains, has secured $225M in funding at a $2.5B valuation. Investors include Coinbase Ventures, Multicoin Capital, which led Solana’s seed round in 2019, and Breven Howard, a well-known hedge fund.

The raise was entirely for token warrants, which grant holders rights to tokens at a future date, according to Fortune. Wormhole doesn’t yet have a publicly traded token, making it a strong candidate for an airdrop.

Wormhole’s raise contrasts with the overall crypto funding environment, which has trended downward since peaking at over $7B raised in October 2021.

Crypto VC Funding chart
Crypto VC Funding

Jump Trading Group, which incubated Wormhole, spun off the project earlier this month. Employees left Jump to develop the cross-chain protocol as an independent entity.

Wormhole doesn’t have a spotless security record — hackers exploited the project for an estimated $320M in early 2022. This is par for the course in the cross-chain protocol space, which has been a prime target in crypto.

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