The initiative will support financial applications developed to run on blockchains based on the Cosmos system.
Injective, a Cosmos-based Layer 1 blockchain for building financial applications that can access other blockchains, launched a $150 million ecosystem initiative with partners including crypto investment firms Pantera Capital and Kucoin Ventures, the creator of marketplace Jump Crypto and research and development center Delphi Labs. The fund will support projects that accelerate the adoption of interoperable infrastructure and decentralized finance (DeFi).
The initiative will offer token and equity investments and provide operational support through development memberships, crypto research, marketing, and community growth. New York-based Injective is also launching a global virtual hackathon where developers will be able to submit projects for potential venture funding.
The collapse of the multi-billion dollar centralized crypto exchange FTX in November squeezed investors’ wallets, though several deals were already in the works. Injective was able to assemble the ecosystem initiative in a couple of months, co-founder and CEO Eric Chen told CoinDesk in an interview.
“It certainly sped up due to the recent failures of the centralized players,” Chen said. “But it wasn’t difficult at all, at least for us, because many of the backers have formally or informally participated in the ecosystem, supporting projects.”
Injection-based applications cover a variety of financial verticals, including exchanges, options, derivatives, and lending. The initiative will support projects that focus on interoperability, DeFi, commerce, proof-of-stake (PoS) infrastructure, and scalability solutions. Other backers include Gate Labs, Flow Traders, IDG Capital, and Kraken Ventures.
Injective’s decentralized smart contract platform was built using the Cosmos SDK and provides developers with modules to speed up the development of complex protocols. Injective protocols have interoperability through native access to chains enabled with Cosmos IBC (Inter-Blockchain Communication) and Ethereum.
The ecosystem is powered by the INJ token, which has a market capitalization of around $144.6 million, according to data. In August, Injective raised $40 million in a funding round backed by Jump Crypto and hedge fund Brevan Howard to boost INJ’s utility in providing liquidity to projects in the ecosystem.