Cryptocurrency fund Paradigm made a hugely successful investment deal, investing early in the Uniswap decentralized exchange (DEX).
Uniswap launched its token in September 2020 with an initial supply of 1 billion UNI. 60% of the total was allocated to community members, 21.26% to teams, 18% to investors, and 0.69% to consultants. Tokens are subject to distribution over four years in accordance with the established plan.
According to analyst Larry Cermak, Paradigm became the only participant in the Uniswap seed fundraising round and acquired then 17% in the project, and later took part in the Series A round.
“Overall, they probably got about 50% of the investor allocation,” Chermak wrote at the time of the token’s release in September. – If UNI ever rises to $ 11, and such a possibility cannot be ruled out, Paradigm, having invested less than $ 5 million, can get more than a billion. I remember some laughing at Paradigm for funding Uniswap in early 2019. Incredible. ”
At that time, users who were keen on the idea of decentralized exchange still had to work with early DEXs, which did not use the automated market maker model employed by Uniswap. Six months after its launch, the UNI token occupies the eighth line in the list of the largest assets of the cryptocurrency market with a capitalization of $ 17.6 billion. UNI is now trading at about $ 35, having risen exactly 10 times in three months.
“Paradigm’s investment in UNI is now probably worth more than $ 3 billion. It could be one of the best investments of all time when you consider the timing and yield, as well as the relative liquidity of the secondary market,” adds Cermak.
400 UNI, which could have been received by every user who made transactions on the exchange before September as part of the airdrop, now cost $ 13,600. The corresponding volume of tokens could be bought or sold at the launch stage for $ 2,000 and even cheaper in October.
UNI’s recent rise comes amid expectations for the third version of the protocol. It is not known for certain when it will be presented and what it will include. At the very least, it is expected to support a tier 2 scaling solution that will help smooth out the current difficulties associated with the high fees of the Ethereum blockchain.
Yesterday, the official Twitter account of Uniswap published an animated video with a unicorn on the logo of the exchange. Many agreed that this is yet another confirmation of the upcoming release.
🦄🦄🦄 pic.twitter.com/uEdz2qiqgL
— Uniswap Labs 🦄 (@Uniswap) March 22, 2021
Commenting on the activity of Uniswap founder Hayden Adams, yearn.finance creator André Cronier previously noted:
“When founders / lead developers start to tweet more actively, it usually means that they have reached the goal and are waiting for the release. At this time, they do not want to start anything new. I noticed that Hayden Adams was writing more often. ”
Adams himself wrote on March 19:
“If I have to spend another week without publicly revealing the details of Uniswap v3, I could go crazy.”
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