New Sonic Foundation by Fantom Gains $10 Million Backing

On Wednesday, Fantom Foundation, an entity behind layer-1 (L1) blockchain Fantom, unveiled the launch of Sonic Foundation and Sonic Labs.

These new entities will be the main bodies supporting its new L1 blockchain, Sonic.

Fantom Secures A $10 Million Fund for Sonic Chain

The Fantom Foundation explained that the Sonic Foundation will be responsible for the network’s governance and treasury management functions. Meanwhile, Sonic Labs will drive growth among dApps, partnerships, and users.

Besides announcing the creation of the Sonic Foundation, the Fantom Foundation also revealed its achievement in closing a $10 million funding round led by Korean crypto fund Hashed. Additional investors included UOB Ventures, Signum Capital, Aave Foundation, and several angel investors.

Read more: What Is Fantom (FTM)?

“Capital raised during the recent round will be exclusively used to further support strategic growth and ecosystem development,” Fantom Foundation’s CEO, Michael Kong, said.

Fantom unveiled its plan to launch the Sonic blockchain earlier in March. The Fantom team has worked to develop the technology for the past two years and anticipates the Sonic chain will launch in the late summer or early fall this year.

Sonic is a blockchain technology designed to process a large number of transactions quickly. It operates as a primary L1 blockchain and includes a layer-2 (L2) bridge feature that enables it to connect with another blockchain, such as Ethereum (ETH).

Professor Bernhard Scholz, the Chief Research Officer at Fantom, designed this technology. Additionally, Andre Cronje, a key figure in the development of decentralized finance (DeFi) and a co-founder of Fantom, led the development team responsible for Sonic.

Sonic claims to tap into vast amounts of liquidity, users, and protocols. This ability allows the chain to combine the low cost, scalability, and speed of L2 with the security of an L2 bridge for access to native ETH and other assets on Ethereum.

Sonic will own a native token, which will use ticker S. A recently approved governance vote made S compatible and can be migrated 1:1 with Fantom’s native token, FTM.

Read more: Fantom (FTM) Price Prediction 2024/2025/2030

However, this positive development has yet to significantly boost FTM’s price. Since Monday, FTM has decreased from $0.95 to $0.81.