BounceBit Raises $6 Million in Seed Funding Round Led by Blockchain Capital and Breyer Capital
BounceBit, a Bitcoin restaking protocol, has successfully raised $6 million in a seed funding round. The funding was co-led by Blockchain Capital and Breyer Capital. Other investors in the round included CMS Holdings, Bankless Ventures, NGC Ventures, Matrixport Ventures, DeFiance Capital, OKX Ventures, and HTX Ventures. Additionally, several angel investors such as Nathan McCauley from Anchorage Digital, Ashwin Aiyappan from Brevan Howard, and Calvin Liu from EigenLayer also participated.
The seed round was closed last week after being structured as a simple agreement for future equity (SAFE) with a token warrant. However, the valuation of the company was not disclosed.
BounceBit is the sister company of Bounce Finance, a token launchpad. Jack Lu, founder and CEO of BounceBit, mentioned that he had been a co-founder of Bounce Finance since 2020 but recently resigned. He added that Bounce Finance would support the BounceBit ecosystem.
What is BounceBit?
BounceBit is a Bitcoin restaking protocol that is currently live in early access mode. Since its launch on January 23rd, it has already amassed over $545 million in total value locked. Unlike other similar protocols like Babylon, Merlin Chain, and B² Network, BounceBit’s technology is unique.
The protocol’s interaction with Bitcoin is anchored at the asset level rather than the protocol level. This allows BounceBit to explore various use-cases of restaking for different types of Bitcoin. The proof-of-stake Layer 1 network supports BTC, Binance’s BTCB, and BounceBit’s native token. This approach not only broadens BTC involvement but also enhances chain security.
BounceBit primarily focuses on Binance’s BTCB asset due to its ease of access, swift creation and redemption process on the Binance exchange, and robust liquidity on the BNB Chain. It provides the lowest barrier to entry for the average user.
Additionally, BounceBit plans to launch BounceClub and the BounceBit App Store to expand its ecosystem. BounceClub is an on-chain web3 domain that empowers users to design, launch, and enjoy decentralized applications (dApps) within the BTC ecosystem. The BounceBit App Store offers a diverse array of tools and components for users to tailor their web3 projects according to their specific needs.
BounceBit Testnet and Mainnet Launch
BounceBit currently has a team of 15 people, and with the fresh funding, it plans to hire more employees. The startup aims to launch its testnet in early March and the mainnet in April, coinciding with the Bitcoin halving event.
Hot Take: BounceBit Secures $6 Million in Seed Funding Round
BounceBit, a Bitcoin restaking protocol, has successfully raised $6 million in a seed funding round co-led by Blockchain Capital and Breyer Capital. The funding round also saw participation from various other investors and angel investors. This significant investment will enable BounceBit to further develop its protocol and expand its team.
BounceBit’s unique approach of anchoring its interaction with Bitcoin at the asset level sets it apart from other similar protocols in the market. With its focus on BTCB as its primary asset, BounceBit aims to provide an accessible entry point for users while enhancing chain security.
The upcoming launch of BounceClub and the BounceBit App Store will contribute to the growth of BounceBit’s ecosystem, allowing users to explore decentralized applications within the BTC ecosystem. With the testnet and mainnet scheduled for release in the coming months, BounceBit is set to make significant strides in the crypto industry.
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