Bitcoin Cash DeFi startup secures over £810K in its seed round
- General Protocol aims to use these funds to develop a DeFi project dubbed AnyHedge.
- Funding came from Marc De Mesel and Molecular among other investors.
- AnyHedge set to face stiff competition from Ethereum DeFi projects.
General Protocols, a Bitcoin Cash startup has raised more than £810,000 in a seed round. A report unveiled this news on May 7, noting that the Singapore-based firm aims to use these funds to develop its decentralized finance (DeFi) product dubbed AnyHedge on Bitcoin Cash. Reportedly, AnyHedge is an open-source derivatives instrument that exchanges and OTC desks can integrate into their systems to create new markets within smart contracts.
Per the report, the funding came from investors like Marc De Mesel, a crypto trader, and Molecular. The project’s team includes two former Bitcoin.com employees and individuals that helped create the voluntary BCH Cash fundraising project known as Flipstater.cash.
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Commenting on this milestone, General Protocol’s president said,
“We are delighted that aligned investors are supporting us in our vision to bring DeFi to Bitcoin Cash. We are building a team of dedicated supporters of peer to peer electronic cash here at General Protocols.”
The DeFi sector is currently a stronghold of Ethereum
While General Protocols has managed to secure funds to begin the development of its DeFi product, the project is set to face significant challenges. This is because Ethereum’s dominance in the DeFi sector will have network effects on AnyHedge considering it is being developed on Bitcoin Cash. According to defiprime.com, there are 213 listed DeFi projects. However, 199 of these projects are built on the Ethereum network. Out of the remaining projects, 10 percent run on other platforms such as BTC, EOS, and TRX.
In February, the amount of money locked in the DeFi market surged to £1.0019 billion. While this value plunged to £716.67 at the time of writing, Ethereum still dominates the market with an approximately 99 percent share. Bitcoin’s Lightning Network only has £7.511 locked, representing 1.05 percent of the total value locked.
Bitcoin Cash creates its own version of Ethereum’s ERC-20 token
This news comes after Bitcoin Cash created its version of Ethereum’s ERC-20 token dubbed Simple Ledger Protocol (SLP). While only BCH has only created 30 SLP tokens to date, the network accommodates Tether (USDT).
Do you think General Protocol’s DeFi product stands a chance in the market considering Ethereum is the most dominant DeFi network? Share your thoughts in the comment section below.