On February 7, it became known about the attraction of investments by the Polygon project in the amount of $450 million. The funding round was led by the venture capital company Sequoia Capital India, which is known for investments in Apple, Cisco, Electronic Arts, Oracle, Google, PayPal, WhatsApp, and other successful companies. RBC-Crypto experts explained why Sequoia Capital paid attention to Polygon and what prospects open up for the project because of this.
One hundred percent perspective
Investing in the project by such a giant as Sequoia Capital - 100% means that the project is promising, says Maria Stankevich, Development Director of the EXMO crypto exchange. However, she warned that this does not mean at all that the project will become the next "whale" in the market.
“Indeed, Polygon is one of the latest successful attempts at blockchain interoperability and scaling, it is designed to remove some of the perceived limitations of interoperability projects such as Polkadot and Cosmos since it is interoperable with Ethereum,” the expert recalled.
Stankevich also urged not to forget the fact that 2021 was the heyday of infrastructure projects that were called “Ethereum killers”: Solana, Polkadot, Cardano, Cosmos, Avalanche, Algorand, Near, Tezos, and so on. Judging by the fact that these altcoins have not yet come close to the success of Ethereum, it is still far from “murder”, Stankevich argues.
Short term effect
Investments by Sequoia Capital have attracted additional attention to the project, but this is unlikely to radically change the situation on the market, says Nikita Zuborev, senior analyst at Bestchange.ru. In his opinion, such news has a short-term effect of increasing demand from private investors and slightly increases the prestige of the project. In the long term, only the technological achievements of the development team can affect the value of the MATIC token, the expert emphasized.
Funds do not invest for the sake of "hype"
Large investment funds like Sequoia Capital do not invest in projects for the sake of quick profit or “hype,” said Mikhail Karkhalev, financial analyst at the Currency.com crypto exchange. According to him, in the case of Polygon, these are long-term investments with the expectation that the investment project will become one of the leading in the industry in the future.
“Accordingly, in the future, we can expect Polygon to compete for market leadership,” the analyst added.
In theory, Polygon has everything it needs to become an alternative to Ethereum - this is high scalability, speed, and low cost of transactions, Karkhalev summed up.