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StarkWare, a layer 2 ethereum developer using ZK-Rollups, has raised $50 million in series C funding and is now valued at $2 billion, according to The Block. The round was led by Sequoia Capital, with other investors including Paradigm, Three Arrows Capital, Alameda Research, IOSG Ventures, Founders Fund and others. The Series C funding brings StarkWare’s total funding to date to $162 million.
According to Uri Kolodny, co-founder and CEO of StarkWare, the company is already turning a profit. StarkEx, StarkWare’s Ethereum extension engine, is used by several blockchain projects, including dYdX, Sorare and Immutable. The team will launch StarkNet Alpha on the Ethereum main network before the end of the month. The main difference between StarkEx and StarkNet is that the former is a licensed tailor-made expansion engine, while the latter is a license-free decentralized ZK-rollup that supports independent deployment of smart contracts.
The signing of the US infrastructure bill has led traders worried about regulation and taxes to dump their crypto holdings. BTC price briefly fell below $59,000 yesterday to its lowest level this month before recovering to near $60,000. The decline continues today. Ethereum slid for a fifth straight day. The extreme volatility the market is prone to could lead to a potential domino effect if more negative news emerges and pushes prices to new lows.