Galaxy Digital, Multicoin Capital, and Jump Crypto are in active discussions with potential investors about creating a fund of approximately $1 billion to support Solana's token.
Discussion of the Investment Fund Creation
Three leading companies in the cryptocurrency sector, Galaxy Digital, Multicoin Capital, and Jump Crypto, are negotiating to establish a fund worth around $1 billion for supporting Solana's token. The initiative, first reported by Bloomberg, would become the largest treasury dedicated to this token.
Solana's Comeback After FTX Collapse
Solana faced challenges after the FTX collapse in late 2022 when the token's price fell to $9. Nevertheless, the network rebounded significantly, more than 2,066%, trading around $195 today, making it one of the most popular blockchains for issuing memecoins.
Plans and Prospects for New Treasury Companies
The fund aims to establish a digital asset treasury company that would take control of an unspecified public entity. Cantor Fitzgerald analyst Thomas Shinske noted that Solana's utility may expand with the increasing popularity of tokenized securities.
The discussed initiative to create a billion-dollar fund for Solana highlights the growing interest in this cryptocurrency, which has managed to recover from significant issues in its past.
