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Encryption startup NuCypher has raised $10.67 million via a simple agreement of future tokens (SAFT) Series 2 sale, ahead of its mainnet launch.
The funding round was led by venture capital firm Polychain Capital and was joined by Y Combinator, Bitmain, Bitfury, Arrington XRP Capital, Notation Capital, and more than 10 other firms.
NuCypher is a decentralized blockchain privacy layer that works as a key management system. Using its Proxy Re-Encryption, users can securely share private data on public networks.
According to a report by The Block, the investors bought NuCypher’s native token, NU, worth $10.675 million or 8% of its initial supply of 1 billion ERC-20 tokens. They also agreed to stake-lock their tokens for 2 years, which means they will stake and run nodes of the network for at least 2 years.
Meanwhile, node operators will be compensated in a combination of new token emissions and network fees. The fresh capital injection brings the firm’s total funding to $15.825 million to date and valuation at $133 million.
Meanwhile, MacLane Wilkison, NuCypher co-founder and CEO, told CoinDesk that the new SAFT comes as the firm is nearly launching its mainnet.
“The launch of our public testnet is the culmination of over two years of hard work to bring data privacy to dApps built on Ethereum and other public blockchains. The network is now fully implemented and ready to enter its final stress testing phase,” he said.
Polychain Capital, along with other investors, has also recently funded cryptocurrency futures exchange CoinFLEX, making the Hong Kong-based firm allegedly the first exchange in the world to offer physical delivery of Bitcoin futures contracts to prevent manipulation of both spot and futures prices.
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