injective protocol raises $10m from pantera capital, mark cuban for its ‘defi robinhood’
Injective Protocol Secures $10 Million Funding Round
Last December, Injective Protocol initiated its testnet for decentralized finance (DeFi) protocols designed for cross-chain derivatives trading. This launch was supported by major cryptocurrency exchange Binance.
The protocol has now successfully raised $10 million in a funding round described as a “party” round. Key participants included Pantera Capital, BlockTower, Hashed, Cadenza Ventures (supported by 100x Group), CMS, and QCP Capital.
Strategic Investment from Mark Cuban
Sources indicate that billionaire Mark Cuban, owner of an NBA team and judge on Shark Tank, has also made a strategic investment in Injective Protocol.
Competition and Advantages
Injective Protocol positions itself against both centralized and decentralized exchanges, listing CME Group, BitMEX, LedgerX, and OKEx as primary competitors.
The platform asserts its advantage lies in combining the security features of decentralized exchanges – namely, resistance to front running, fraudulent activities, and hacking – with the speed and cost-effectiveness of centralized platforms, including the absence of gas fees.
Developers are also empowered to create and deploy their own unique derivatives and trading markets.
Statements from Injective Protocol CEO
Eric Chen, CEO of Injective Protocol, stated: “Traditional financial institutions and established practices introduce unnecessary delays and intermediaries, hindering innovation within the financial markets.
At Injective, our objective is to deliver an exceptional decentralized trading experience, granting global retail traders unprecedented access to limitless markets, free from exorbitant fees and sluggish transaction speeds.”
A Decentralized Alternative to Robinhood
Injective aims to establish a decentralized alternative to platforms like Robinhood. Its platform facilitates the creation of synthetic tokens representing shares in publicly traded companies, such as Apple, and indices like the S&P 500.
This functionality enables 24/7 trading with instant settlement, aligning with the core promises of DeFi technology.
Mark Cuban’s Rationale for Investment
Mark Cuban explained his investment, stating: “The issues with stop-outs stem from capital requirements. Robinhood’s actions weren’t malicious, but they lacked sufficient equity and faced potential bankruptcy due to excessive customer volume.
A decentralized approach offers transparency, allowing every investor to view Injective’s holdings, eliminating hidden risks and creating new opportunities.”
Preventing Trade Restrictions
Cuban highlighted the potential to prevent brokers from restricting trades on specific stocks, referencing the GameStop situation as an example.
Project Origins
The Injective team, comprised of individuals with backgrounds from Stanford University, initiated the project in 2018.
This followed Eric Chen’s experience working at hedge funds and conducting cryptographic research within a blockchain-focused investment fund.
Mike Butcher
Mike Butcher: A Profile of a Leading Tech Voice
Mike Butcher, M.B.E., is a highly respected figure in the technology landscape. Previously serving as Editor-at-large for TechCrunch, his journalistic background includes contributions to prominent UK newspapers and magazines.
Recognition and Influence
Wired UK has recognized Butcher as one of the most influential individuals shaping European technology. This acknowledgement underscores his significant impact on the sector.
Speaking Engagements and Interviews
Butcher is a sought-after speaker, having presented at prestigious events like the World Economic Forum, Web Summit, and DLD. He has conducted interviews with a diverse range of prominent figures.
Among those he has interviewed are former UK Prime Minister Tony Blair, Russia’s Dmitry Medvedev, actor Kevin Spacey, model Lily Cole, Telegram founder Pavel Durov, and Wikipedia’s Jimmy Wales, alongside numerous other technology executives and celebrities.
Broadcasting and Advisory Roles
As a frequent broadcaster, Mike Butcher regularly appears on major news networks. These include BBC News, Sky News, CNBC, Channel 4, Al Jazeera, and Bloomberg.
His expertise extends to policy advising, having consulted with UK Prime Ministers and the Mayor of London regarding technology startup initiatives. He also served as a judge on the UK edition of The Apprentice.
Awards and Founding Ventures
GQ magazine once listed him among the 100 Most Connected Men in the UK, highlighting his extensive network. Butcher is also the co-founder of several notable organizations.
- TheEuropas.com: A platform showcasing the Top 100 European startups.
- Techfugees.com: A non-profit organization.
- TechVets.co: Another non-profit initiative.
- Startup Coalition: Focused on supporting startups.
In 2016, Mike Butcher was awarded an M.B.E. in the Queen’s Birthday Honours list. This honor recognized his dedicated services to both the UK technology industry and the field of journalism.