Emurgo, the financial arm of the leading Cardano cryptocurrency project, has announced that it will invest $ 100 million in the development of decentralized financial products for the ecosystem. The company will create two subsidiaries for this task, one being entirely dedicated to incentivizing the creation of Africa-based startups that use the Cardano blockchain in the development of their products.
Cardano to push ecosystem with $ 100 million
Emurgo, the financial arm of Cardano, is Planning to initiate product development related to Cardano by earmarking $ 100 million for two new investment vehicles. The subsidiaries will have different orientations, but both will help expand the Cardano ecosystem.
The first, called Emurgo Ventures, will be tasked with providing seed funding to interesting companies that involve Cardano in the development of their products. These products could include NFT platforms and decentralized finance (challenge) platforms to take advantage of new abilities that the Cardano blockchain has activated.
Regarding this, Emurgo CEO Ken Kodama said:
We are focusing more than ever on accelerating the development of the Cardano ecosystem with a rich mix of decentralized services aimed at a global community that is increasingly aware of the blockchain.
Priority to Africa
The representatives of Cardano have a clear goal, and that is to be the first to harness Africa’s potential when it comes to adopting cryptocurrency-based solutions. This is because the region suffers from financial inefficiencies and has a large percentage of unbanked residents.
Anxious to meet this demand, Emurgo launched its second subsidiary called Emurgo Africa. The objective of this subsidiary is to support three hundred start-ups in the region through seed and incubation funding, in order to make Cardano one of the most used chains in the region. This funding, according to the statements, will prioritize projects that use Cardano to deliver social impact solutions over other types of projects.
All of these solutions are focused on creating a rich decentralized financial ecosystem that leverages the new smart contracts characteristic of the chain introduced with the Alonzo hard fork earlier this month. The goal is to create a dynamic challenge ecosystem to compete with other solutions already known by their platforms such as Ethereum, Solana and Avalanche.
What do you think of Emurgo’s investment to encourage the use of Cardano? Tell us in the comments section below.
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