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Billionaire Mark Cuban Invests in Ethereum Scaling Solution Polygon
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Billionaire Mark Cuban Invests in Ethereum Scaling Solution Polygon

Billionaire investor Mark Cuban has made an undisclosed investment in Indian blockchain startup Polygon, a platform for building and connecting Ethereum-compatible blockchain networks.

Polygon is a Layer-2 Ethereum scaling solution and a decentralized framework for building decentralized finance (DeFi), decentralized application (dApp), decentralized autonomous organization (DAO), and non-fungible token (NFT) applications.

The American entrepreneur declined to share the investment sum. He also has not revealed whether he invested in the Indian startup via his venture capital firm, Radical Investments.

Cuban is among the latest high-profile figures to throw his support behind Polygon, stating, “I was a Polygon user and find myself using it more and more.”

The successful investor, who is the owner of the Dallas Mavericks basketball team, has been bullish on the future of cryptocurrencies for years. He makes it a priority to learn about and invest in this nascent sector.

So far, Cuban has invested in over 10 blockchain startups, including several NFT-related platforms. Most recently, he made strategic investments in NFT data platforms CryptoSlam, Lazy, Mintable, and NFT42. (To learn more about other cryptocurrency stocks, check out the TipRanks Cryptocurrency Stock Comparison tool)

Polygon’s Popularity Increasing as Company Rolls Out its Own SDK

Formerly called Matic Network, Polygon was founded in India by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun in 2017, and rebranded to its new identity in February. Through this easy-to-use platform for Ethereum scaling and infrastructure development, Polygon is attempting to facilitate the growth of the Ethereum ecosystem. It mainly acts as a secondary layer to the Ethereum blockchain, but also offers atomic swaps, improved dApp, and decentralized exchange (DEX) performance.

Mark Cuban’s investment came at the right time for Polygon. Polygon has announced its next roadmap milestone, the rollout of the Polygon SDK (software development kit). The modular and extensible framework will empower developers to build Ethereum-compatible blockchain networks. Soaring interest in its scaling solutions has led to widespread adoption, with over 250 dApps, 76 million transactions, and 800,000 unique users.

Polygon is designed to be an entire platform, made for launching interoperable blockchains. Developers can use the platform to launch customizable, preset blockchain networks. Thanks to its customizing ability, developers can embed specific functions into their blockchains.

Polygon’s solution solves many problems that are inherent to existing Layer-2 solutions, which only solve the issues of transaction cost and throughputs. Furthermore, the framework opens up a wide range of options that are considered difficult to apply on Layer 1, and removes bottlenecks of painfully long waiting times.

The soaring punishing transaction costs known as gas fees, in addition to delayed transaction processing times on Ethereum, have sent developers to Polygon to solve inefficiencies that may hinder the adoption of their dApps. This occurred after many projects and investors were priced out of the field, finding themselves unable to participate in DeFi or NFT activities.

Polygon’s coin $MATIC is up more than 9500% year to date and is now among the world’s top 20 crypto tokens, according to CoinMarketCap.

Disclosure: The authors held no position in any of the stocks mentioned in this article at the time of publication.

Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.

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