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Fantom’s New Sonic Chain Gains $10 Million Backing, Launch Expected Late Summer

2 mins
Updated by Lynn Wang
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In Brief

  • Fantom introduces two new entities to support development for its Sonic chain.
  • Sonic chain development backed by $10 million funding round, led by Hashed.
  • Revealed in March, Sonic is expected to launch in late summer or early fall 2024.
  • promo

On Wednesday, Fantom Foundation, an entity behind layer-1 (L1) blockchain Fantom, unveiled the launch of Sonic Foundation and Sonic Labs.

These new entities will be the main bodies supporting its new L1 blockchain, Sonic.

Fantom Secures A $10 Million Fund for Sonic Chain

The Fantom Foundation explained that the Sonic Foundation will be responsible for the network’s governance and treasury management functions. Meanwhile, Sonic Labs will drive growth among dApps, partnerships, and users.

Besides announcing the creation of the Sonic Foundation, the Fantom Foundation also revealed its achievement in closing a $10 million funding round led by Korean crypto fund Hashed. Additional investors included UOB Ventures, Signum Capital, Aave Foundation, and several angel investors.

Read more: What Is Fantom (FTM)?

“Capital raised during the recent round will be exclusively used to further support strategic growth and ecosystem development,” Fantom Foundation’s CEO, Michael Kong, said.

Fantom unveiled its plan to launch the Sonic blockchain earlier in March. The Fantom team has worked to develop the technology for the past two years and anticipates the Sonic chain will launch in the late summer or early fall this year.

Sonic is a blockchain technology designed to process a large number of transactions quickly. It operates as a primary L1 blockchain and includes a layer-2 (L2) bridge feature that enables it to connect with another blockchain, such as Ethereum (ETH).

Professor Bernhard Scholz, the Chief Research Officer at Fantom, designed this technology. Additionally, Andre Cronje, a key figure in the development of decentralized finance (DeFi) and a co-founder of Fantom, led the development team responsible for Sonic.

Sonic claims to tap into vast amounts of liquidity, users, and protocols. This ability allows the chain to combine the low cost, scalability, and speed of L2 with the security of an L2 bridge for access to native ETH and other assets on Ethereum.

Sonic will own a native token, which will use ticker S. A recently approved governance vote made S compatible and can be migrated 1:1 with Fantom’s native token, FTM.

Read more: Fantom (FTM) Price Prediction 2024/2025/2030

FTM Price Performance.
FTM Price Performance. Source: CoinGecko

However, this positive development has yet to significantly boost FTM’s price. Since Monday, FTM has decreased from $0.95 to $0.81.

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Lynn Wang
Lynn Wang is a seasoned journalist and content creator with over eight years of experience in digital marketing and cryptocurrency journalism. Her expertise lies in SEO strategy, blockchain technology, and Web3, where she has consistently delivered impactful content initiatives and engaged audiences effectively. Since January 2022, Lynn has been at the forefront of content and community efforts for BeInCrypto Indonesia. Under her leadership, the platform has witnessed remarkable growth,...