Decentralized derivatives trading platform Injective has attracted huge sums from venture capital giants, including billionaire entrepreneur Mark Cuban.
The DeFi protocol has added a further $10 million to its investment funds in a round that featured some huge names in the industry. It had already raised $7 million bringing the total to $17 million.
Participating in the round was Pantera Capital, BlockTower, Hashed, Cadenza Ventures (formerly BitMex Ventures). In addition, several other individuals including billionaire NBA team owner Mark Cuban were involved.
The private token sale ended up shifting tokens with a one-year lockup period at a valuation of over a billion dollars. Injective CEO Eric Chen tweeted the achievement, saying, “With our mainnet around the corner, this round is critical for aligning major stakeholders.”
CEX and DEX combined
Injective (INJ) aims to combine the advantages of decentralized exchanges (DEXs). Those include resistance to front running, scams, and hacks, with the speeds and low transaction fees associated with centralized platforms.
Chen elaborated on this, stating that legacy institutions create several artificial delays and intermediaries that prevent innovation in the financial markets ecosystem.
As observed by TechCrunch, Injective is essentially trying to build a decentralized competitor to Robinhood. The platform allows synthetic tokens that represent stocks or indexes to be created.
Injective runs on the Tendermint proof-of-stake (PoS) consensus mechanism. This is where the algorithm uses a pseudo-random election process to select a node to be the validator of the next block.
Users can delegate their native INJ tokens to any validator to earn rewards directly with the use of third party wallets just as is the case with Tezos.
Cuban commented that he invested because of Injective’s decentralized model that does not have any capital requirements to trade. He pointed out that brokers would not be able to block trades on certain stocks, as they did with GameStop:
“If you’re doing it in a decentralized manner, every investor gets to see how much Injective has of all of this, there’s no hiding it and that creates an opportunity.”
INJ token outlook
Injective’s native token has skyrocketed 24% over the past 24 hours, according to CoinGecko. At the time of writing, INJ was trading at $14.12. Its all-time high came on February 19, when the token hit $18 for the first time.
There are 13.5 million tokens circulating from a maximum supply of 100 million, giving INJ a market capitalization of $190 million.