Despite the fact that his previous firm was investigated by authorities, Nischal Shetty, co-founder of Indian crypto exchange WazirX, is raising funding for a new one.
Shetty intends to raise $20 million to $30 million during the seed financing round, valuing his blockchain business Shardeum at $200 million, according to unidentified sources.
According to the reports, prominent investors in this round include the Spartan Group, Struck Crypto, Big Brain Holdings, and Cogitent Ventures.
Although Shetty confirmed that the startup was gathering funds, he also stated that the round had not yet concluded. “We are currently working with top VCs in an ongoing funding round,” he said in a statement. “We look forward to sharing more details on how we’re working to turbocharge the expansion of our team and accelerate Web3 adoption for developers and their users.”
sharding of shardeum
Shardeum gets its name from the sharding technique, which divides a network into shards to allow for more transactions to be processed, confirmed, and validated in simultaneously.
According to an investor presentation, Shardeum expects to be able to handle over 100,000 transactions per second with 100,000 nodes while maintaining a latency of 10 seconds.
Other blockchain elements include the use of both proof-of-stake and proof-of-quorum consensus processes to reduce network costs. In addition, it will use three sorts of nodes in its network: validator, archiving, and standby.
According to unidentified sources, the firm will initially target emerging markets like as India, with a mainnet launch scheduled for the third quarter beginning in October.
The decision comes as Indian authorities have increased pressure on Shetty and his first venture, WazirX. The Indian Ministry of Finance stated earlier this month that the crypto exchange was being probed for money laundering and violating foreign exchange restrictions.
The Minister of State for Finance, Pankaj Chaudhary, acknowledged in the Parliamentary Upper House that the Directorate of Enforcement is investigating reports that over $350 million was laundered through the Binance-backed exchange.
Later that week, the Enforcement Directorate (ED) blocked the bank account of one of the directors of Zanmai Lab, the operator of WazirX, whose assets worth more than $8 million were frozen following a raid in Hyderabad.