Three people familiar with the matter told me that many investors, including Sequoia Capital India and Steadview Capital, are negotiating to support Polygon. Polygon operates a framework for building and connecting a blockchain network compatible with Ethereum, and buying through tokens. The way.

According to sources, investors want to buy tokens worth between 50 million and 150 million U.S. dollars, and because the talks are conducted in private, they requested anonymity. As with these token transactions, investors will be able to purchase tokens at a slight discount. (As far as I know, the average price of MATIC has been discounted by 20% in the past month.)

The review is ongoing, so the terms may change. No one commented earlier this week.

Polygon, formerly known as Matic, has become one of the most popular layer 2 solutions. The company has a market value of more than 14 billion U.S. dollars, processes more than 7.5 million transactions per day, and allows thousands of decentralized applications to continue to use Ethereum as the settlement layer, but avoids increasingly expensive gas fees.

Aave, Sushi Swap, and Curve Finance are among some of the largest blue chip projects deployed on Polygon, and Polygon has accumulated one of the largest developer ecosystems (even when compared to some Tier 1 blockchains).

An investment will mark a shift in investors’ perceptions of India-based Polygon, which until recent years has struggled to gain support from the most famous venture capital firm in the South Asian market. (It is worth noting that most venture capital firms in India did not actively follow the web3 sector until a few quarters ago.) In addition, Polygon had to face at least some of the early investors requesting refunds during the bear market cycle. According to the two Informed sources revealed.

The company returned funds to some of the investors and survived. "This is one of the themes of the Polygon team. Their perseverance has taken it to the next level," said a former employee.

Polygon, supported by entrepreneur and investor Mark Cuban (Mark Cuban) this year, is one of dozens of sidechains and aggregation networks. It is hoped that Ethereum can continue its dominance even for a few other Tier 1 projects such as Polkadot And Solana, backed by Multicoin Capital and A16z, is trying to attract a new but fast-growing developer ecosystem.

In the Bankless podcast earlier this year, Polygon co-founder Sandeep Nailwal (pictured above) stated that today's web3 developer ecosystem is centered on Ethereum, and he hopes that the network effect will not dissipate. In the same podcast, Mihailo Bjelic, another co-founder of Nailwal and Polygon, stated that Polygon is continuously expanding its product range to build blockchain infrastructure.