DeFiance Capital Seeking $100M in Funding to Invest in Liquid Tokens

Crypto Venture Capital firm, DeFiance Capital is in the process of raising as much as $100 million as it looks to invest in “Liquid Tokens.”

According to three sources familiar with the matter who spoke to The Block, the fund is dubbed the "Liquid Venture Fund," and one of the sources affirmed that more than 50% of the projected capital had been raised.

DeFiance Capital prides itself as a “sub-fund and share class of Three Arrows Capital” of crypto hedge fund giant Three Arrows Capital (3AC). However, when the Su Zhu-led firm crashed back in June owing to its exposure to the collapsed Terra ecosystem, DeFiance Capital denounced its integral association with 3AC.

The Arthur Cheong-led VC came out to say it is a separate entity that was managed independently of 3AC upon the latter’s liquidation. That DeFiance Capital has not gone bankrupt is a testament to its upright financial standing at this time.

The firm is known as a major backer of some of the iconic names in both the Non-Fungible Token (NFT), Decentralized Finance (DeFi), and Web3.0 ecosystems. Specifically, DeFiance Capital’s top portfolio includes Axie Infinity, Avalanche, Solana, and ConsenSys to mention a few.

According to two of the sources, DeFiance Capital may not wait until 100% of the fund is raised before it starts injecting the funds into the project's liquid tokens. The liquid tokens are digital currencies that have either already been listed on a trading platform or are about to be listed. 

Some of the sources confirmed that the firm has raised part of the funds from a crypto fund as well as a few family offices. There is no idea whether DeFiance Capital has earmarked the tokens it wishes to invest in prior to the completion of the funds.

Raising funds through token sales is becoming very prevalent in today’s crypto world and has been exploited by a number of protocols including Polygon and 1inch in the past.