Alameda Research Pumps $20M Into Cross-Chain DeFi Platform Reef Finance

Sam Bankman-Fried's investment shop has bought $20 million in REEF tokens, with an eye to purchasing more.

AccessTimeIconMar 12, 2021 at 3:46 p.m. UTC
Updated May 9, 2023 at 3:17 a.m. UTC

Polkadot-based Reef Finance said trading firm Alameda Research has made a $20 million investment by purchasing REEF tokens.

In an announcement Friday, the firm said Alameda Research has become a significant stakeholder in the cross-chain decentralized finance (DeFi) platform. Reef previously announced a $3.9 million funding round last September with backing from NGC Ventures, Kenetic Capital and others.

  • Bitcoin ETFs Are Still 'Wildly Successful': Kraken Head of Strategy
    11:52
    Bitcoin ETFs Are Still 'Wildly Successful': Kraken Head of Strategy
  • Wormhole’s W Token Has a 999% Weekly Return; Why VanEck Is Bullish on Ethereum Layer 2s
    02:30
    Wormhole’s W Token Has a 999% Weekly Return; Why VanEck Is Bullish on Ethereum Layer 2s
  • Three Crypto Predictions in 2024
    02:07
    Three Crypto Predictions in 2024
  • Why Injective's INJ Has Surged 3,000% in 2023
    00:52
    Why Injective's INJ Has Surged 3,000% in 2023
  • The Alameda investment represents a significant bet on DeFi traction outside of Ethereum, the leading venue for bank-like financial applications built on the blockchain. Demand for such services has made DeFi a $42 billion concern but has also driven up gas fees on Ethereum to record highs.

    Notably, Reef Finance said Alameda, a major backer of the high-throughput Solana blockchain, will help the project build its first bridge between Polkadot and Solana.

    "We're excited to incorporate this investment to further our trajectory and for the development of the Reef chain for DeFi applications of the future," Reef CEO Denko Mancheski said in a statement.

    In February, Alameda Research announced it was leading a $40 million investment in Oxygen, which is built on Solana. Oxygen's suite of DeFi tools are expected to be built into Maps.me, a widely used travel app in which Alameda is also invested.

    A source with knowledge of the Reef Finance investment said Alameda may soon up its REEF holdings beyond the announced $20 million.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.