Venture capital firm Multicoin Capital has raked in a huge amount of DRIFT tokens. DRIFT is the native token of the derivatives exchange Drift, which is built on Solana. The firm offers a price of $3.58 for DRIFT, which is more than 7x its current market rate.
In a blog post, Multicoin unveiled that it amassed DRIFT via both private and public markets across its funds in the last few years. The firm, which was the main investor in Drift’s seed round, considers the protocol as a critical participant in the “Open Finance” landscape which is just starting to develop.
Multicoin highlights Drift’s competitive advantages
Multicoin thinks that Drift will have a chance of being the main global, permissionless platform for derivatives trading. The firm sees billions of people from poor countries pouring to derivative DEXs as their main access point to global markets in the near future.
“We think Drift leads the pack regarding feature parity with large derivatives CEXs,” Multicoin stated. The VC highlighted Drift’s 50x year-over-year growth in total trading volume and 10x increase in derivatives DEX market share.
Multicoin’s innovative approach builds on Drift’s product drive, aided by Solana’s scalability. With the growth of the Solana ecosystem, Drift will be able to tap into network effects and the increasing adoption of DeFi.
The firm’s $3.58 winning target for DRIFT corresponds to an upside potential of 7x against current prices. Nevertheless, investors ought to understand that VC companies are frequently interested in the projects they support. While Multicoin’s analysis is useful, conducting independent research is important before investing in the volatile crypto market.
Nevertheless, this investment signals the increasing institutional preference for decentralized finance, mostly in emerging markets. As the regulatory scrutiny on CEX exchanges becomes more pronounced, DEXs such as Drift may receive more patronage from traders seeking permissionless global market access.
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