Neon Labs Developers Raise $40 Million In Token Sale

Neon Labs developers managed to raise $40 million in a token sale and will continue to build out Neon EVM that allows any ETH App to be ported to Solana so let’s read more in our latest cryptocurrency news.

The Solana ecosystem only continues with stealing the spotlight this year. Following the recent integration with Brave, the world’s third most downloaded browser, and after the record high of total value locked in Solana’s Defi ecosystem, Neon Labs developers raised fresh funds to continue with the momentum. Neon Labs raised $40 million by selling the native NEON token to notable investors. Led by Jump Capital, Three Arrows Capital, Ethereal Ventures and Solana capital joined in the fundraising.

We are delighted to announce #neon, an Ethereum Virtual Machine (evm) scalability solution built on @solana. Neon lets developers take advantage of the #Ethereum and #Solana ecosystems, as easily as deploying to existing eth Layer 2 scaling solutions. /1 pic.twitter.com/uJZj61wZb3

— Neon Labs (@neonlabsorg) July 20, 2021

A partner at Jump Capital, Saurabh Sharma said that the investment as motivated by the plenty similarities between the Neon EVM product and Java’s Virtual Machine which can be on Ethereum or Java but operates the same as your physical computer that is able to store files and connect to the internet and much more. The main difference however was that the virtual machine is a code rather than hardware:

“Neon provides similar functionality by allowing developers to combine battle-tested smart contracts for EVM-compatible chains with Solana’s parallelism and extremely fast execution layer. In a multichain world, Neon has the potential to be a core infrastructure block that opens up so many scaling possibilities for developers.”

The Neon EVM allows developers to port Ethereum projects like Aave or Uniswap directly ver to the Solana network and any platform which is EVM compatible can simply be copied to Solana. Neon EVM is still on the testnet but the team is preparing for a new mainnet launch after the news today with director Marina Guryeva saying:

“Sushi, Aave and several more dapps have confirmed their interest in deploying on Neon EVM but they need us to enable integrations with the infrastructure providers to be able to do so. And this is our first priority in parallel to the mainnet launch. I believe that with this huge interest and support, Neon EVM is destined to successfully bridge the gap between Ethereum and Solana.”

The main advantage is reducing the costs without using utility because today it is quite expensive to execute trades on SushiSwap for example. The proposition by the team is to allow other teams to expand their community to another blockchain as well. With the new funding, Neon Labs will continue the trend and will mirror Ethereum’s popular products on Solana.