MATIC Jumps 16% Amid Raising $450 Million In A Private Token Sale

The price of Polygon’s governance token MATIC rose double-digit, amid market-wide recovery and an investment round by SoftBank, Sequoia Capital and other big industry names.

Polygon recently raised $450 million, with Sequoia Capital leading the investment with more than 40 other investors participating, including SoftBank Vision Fund 2, Tiger Global, Alan Howard, Kevin O’Leary, Galaxy Digital, Sino Global Capital, Alameda Research, Digital Currency Group, Accel, Union Square Ventures, and Dragonfly Capital.

Polygon is planning to allocate $100 million to a dedicated “ecosystem fund,” which would be used to support upcoming development on the network. The remaining capital would be earmarked towards continuously robust growth of the platform.

This fundraising round comes less than two weeks after Polygon hired Ryan Wyatt, Head of YouTube Gaming, as the new CEO of its game studio called Polygon Studios.

Polygon recently committed to investing $1 billion in ZK-rollup-related scaling efforts and since then has announced two acquisitions worth $650 million: Mir and Hermez. Nailwal said the fresh capital will allow Polygon to consolidate its Ethereum scaling efforts and onboard the next billion users to Ethereum.

Shailesh Lakhani, MD at Sequoia Capital India, commented:

“The platform of choice to build on the blockchain today is Polygon. Thousands of developers across a range of applications are choosing Polygon and their complete set of scaling solutions for the Ethereum ecosystem.” 

The news about the massive funding round has also been noticed with a surge in the price of MATIC, Polygon’s native token. Since the news was released, MATIC has gone up more than 16% to over $2 as of the time of writing.