DeFi TrustToken Platform Raises $ 12.5 Million in VC Token Sale
The decentralized finance lending (DeFi) and stablecoin TrustToken platform has secured a significant round of funding backed by big names in venture capital investing.
The platform behind the TrueFi DeFi lending protocol raised $ 12.5 million in a funding round led by Blocktower Capital, Andreessen Horowitz (a16z) and Alameda Research.
Venture capital firms bought the protocol’s native tokens, TRU, on lockdown according to the announcement. CEO and co-founder, Rafael Cosman, declared:
“This fundraiser marks a pivotal moment for us: expanding our leadership team, expanding our technical team and expanding the scope of our protocol. “
TrueFi offers unsecured loans, powered by the world’s first on-chain credit scores, and produces the TUSD stablecoin. He claims that the company’s “TrueCurrencies” are the world’s first independently verified and fully guaranteed stablecoins.
DeFi Credit Ratings
The protocol explained that unsecured loans such as lines of credit represent an $ 11 trillion industry in traditional finance. However, this is pretty much unheard of in DeFi, as it is made up almost entirely of oversized loans.
He added that since the facilitation of DeFi’s first unsecured loan in November 2020, the TrueFi protocol has generated over $ 250 million in such loans and paid out over $ 2 million to lenders, with no defaults to date.
Cosman explained that scaling the platform will allow DeFi to offer more diversified returns for lenders and better access to capital for creditworthy borrowers. Alameda Research CEO Sam Bankman-Fried said:
“We are seeing TrueFi unsecured loans grow far beyond crypto, and we plan to be partners and users at every stage of the protocol’s growth,”
TrueFi’s on-chain credit scores will be beneficial “for lenders to assess where they want to invest their capital,” said Blake Richardson, investor at BlockTower.
In late June, TrueFi announced new integrations with Binance, Chainlink, and SushiSwap, as it further integrated into the DeFi ecosystem.
TRU prices double
TrueFi’s native TRU governance and staking token have skyrocketed in the news, doubling in price in the last few hours. TRU has jumped 98% in the past 24 hours to $ 0.313 at press time.
The token has relied on gains of 130% over the past week, but is still down 50% from its all-time high in mid-February of $ 0.615.
There is an outstanding supply of 369 million tokens, giving it a market cap of $ 116 million. The total value locked onto the TrueFi platform is $ 225 million according to DeFiLlama, although it also fell from a peak of $ 300 million in early July.
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