Why Billionaire Chamath Palihapitiya Invested In The Solana Ecosystem
A top performer in the crypto market, Solana (SOL) continues to attract attention from institutional investors and strengthen its fundamentals for future gains. In that sense, the ecosystem build on top of this network seems poised to become the prime contender to take over a portion of Ethereum’s market share.
Billionaire and early Bitcoin investors Chamath Palihapitiya recently revealed a co-leading position in Syndica, a Solana’s infrastructure developer, seeding round. The investment was made via Social Capital, Palihapitiya’s venture capital firm.
The company managed to raise over $8 million. The funds will be used to build “the scalable developer infrastructure for the thriving Solana ecosystem”, as Palihapitiya said via Twitter.
Alongside Social Capital, the round saw participation from major names in the industry such as crypto exchange FTX CEO Sam Bankman Fried with his investment firm Alameda Research. Bankman Fried has been making notoriously public his position in SOL.
In addition, Jump Capital, Kindred Ventures, Solana Ventures, Ox Labs, Messari’s Ryan Selkis, CoinShares, DeFiance Capital, Spartan Group, MGNR, Resolute VC, and Untamed Ventures, and others also participated in the round, according to a press release. CoinShares’ CSO Meltem Demirors commented the following on her firm’s investment in Syndica:
(…) delighted to back Syndica_io’s seed round via CoinSharesCo Ventures as they bring robust, scalability-focused developer infrastructure to the $60B and growing Solana ecosystem.
Building The Future Of The Internet On Solana
The release claims that the SOL ecosystem lacks a bridge that allows it to connect the applications with the network itself. In order to increase the blockchain’s scalability, Syndica is planning to create a Cloud-like infrastructure.
The company was founded by Danial Abbasi and its CEO Ahmad Abbassi. The improvements to the scalability of the Solana ecosystem will be made via RPC nodes.
These components will operate as intermediaries between the network and the dApps “allowing them to read and write data to the blockchain”. In addition, the company will provide “a suite of features”, such as RPC usage analytics, advanced logging, and others.
According to the release, the founders envision becoming “the Cloud of Web 3.0”. Abbassi said the following about their recent seed round:
What excites us most is the opportunity to bring in the next generation of Web 3.0 developers by creating an experience that makes Web 2.0 developers feel at-home. We think that migration is a one trillion-dollar opportunity, and we will play a central role in it.
SOL has experienced a 200x price rally in over a year. The network has also seen a massive explosion in terms of developer interest and user activity in a two-month period. Palihapitiya said:
Web 3.0 is ushering in a revolution of the internet, and developers are on the cutting edge of this change. Syndica is making it as easy to build in the Solana ecosystem as it is to build in Web 2.0, and we’re excited to support this journey.
As of press time, SOL trades at $235 with a 10% rally in the daily chart.Source