In the most recent turn of events, Li.Fi is the supplier of multichain liquidity and data gateway services Li.Fi, raised a total of $17.5 million in Series A funding, with crypto-native investment companies Superscript and CoinFund serving as the primary leaders of the fundraising effort.
This fundraising round takes place during a period of uncertainty in the global macro environment, during which liquidity has also been decreasing.
Li.Fi Funding
The company Li.Fi stated that crowdfunding would assist them in putting their long-term strategy into action.
The cryptocurrency start-goal up’s is to attract more users to Web3 by facilitating the use of tokens and orders and making it possible for users to trade across multiple chains intuitively.
Li.Fi is currently placing bets on the increasing demand for decentralized finance (DeFi) ever since the failure of the centralized exchange FTX in November 2022. This event occurred exactly one year ago.
In addition, centralized exchanges are currently being subjected to increased scrutiny from regulators.
Several cryptocurrency-friendly institutions in the United States were closed down by regulators just one month ago. In such a situation, the significance of decentralized file storage is increasing once more.
Bernstein, an investment firm, highlighted in a research report released the previous month that the revitalization of decentralized finance (DeFi) is again in the works. They said DeFi is “considerably more sustainable, scalable, transparent, and with significantly improved token economics.”
Additional Information Regarding the Cryptocurrency Startup Li.Fi
Li.Fi, a cryptocurrency firm established in Berlin, assists developers in navigating the immensely fragmented collection of Layer 1, Layer 2, and Layer 3 blockchains that are now in use. In addition to this, it assists developers in navigating the bridge platforms that connect several blockchains, as well as the decentralized exchanges that are a part of decentralized finance (DeFi).
Developers are given access to an application programming interface (API) by Li.Fi, which enables them to bring their products to market more quickly through the creation of prototypes. Philipp Zentner, the CEO of LI.FI, stated (1) the following in an interview with CoinDesk:
“There is a significant amount of integration overhead for anyone who is interested in working on that front-end infrastructure, in addition to the fragmented liquidity.
This is a classic example of the sunk cost fallacy. You have no idea what systems are still online and operational and what systems are being broken into or hacked.
It’s possible for systems to run out of liquidity. There is a possibility that there will be a change in the strategic plan, and you will be required to adapt to the new environment.
A significant amount of integration upkeep is required, and we are responsible for that component by aggregating the most important DeFi infrastructure.