SKALE labs raises $17.1M from Winklevoss Capital, ConsenSys & others
NEWS
October 01  |  2 min read

Ethereum Scaling Project SKALE Raises $17.1M to Speed Up Mainnet Launch

The COIN360 Editorial Team

SKALE Labs, which offers an Ethereum scaling solution, has raised $17.1 million in a new funding round via Simple Agreement for Future Tokens (SAFT) sale, from such investors as Winklevoss Capital and ConsenSys Labs, to speed up the mainnet launch.

According to the SKALE Labs CEO Jack O’Holleran, with this financial support the mainnet will be released late 2019 or the first quarter of 2020. He specified that majority of the funds will go to the engineering and marketing teams.

Jack O’Holleran also highlighted the SKALE competitive advantage in comparison to other Ethereum scaling solutions, pointing out to user experience problems of competitors:

“The goal [of SKALE Network] is to bring the UX and performance values of traditional sidechains, but without the security holes of traditional sidechains. The security approach is similar to sharding where each SKALE Chain is supported by the security of the greater pool of validators due to Randomness, Rotation, and Incentive mechanics of the network.”

The CEO confirmed that the company is not planning further private sales. Public sales are scheduled for later this year.

Contributors to this funding round include Winklevoss Capital, Arrington XRP Capital, Blockchange, ConsenSys Labs and Multicoin Capital, Hashed, HashKey, and Recruit Holdings.

In the meantime, the Ethereum network goes back to normal operations, as the congestion queue has been dropping from 100,000 pending transactions to less than 40,000, the network operates at 80% of capacity and the transaction fees are down from $0.2 a few days ago to $0.004 at the time of writing.