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In the span of two years, what started as a curiosity has ballooned in size, ushering in a new model for technology investing in the process. Private investors have backed 72 DeFi companies this year, according to PitchBook data, already surpassing last year’s total by more than a quarter.
Uniswap is not even three years old, but it has already turned millions of dollars into billions for venture capitalists who bet on a new kind of cryptocurrency exchange. Instead of acting as a traditional broker, Uniswap is an automated software program that allows users to trade cryptocurrencies directly with each other, without any intermediary. Last year venture capitalists who had invested a total of $12.8m in the company behind the project received a sweetener: Uniswap began distributing 1bn digital tokens to users, giving investors 18 per cent of the total. The tokens, which give holders voting rights in the project, have surged to a price of $28, rewarding the investors with a stake worth roughly $5bn
https://www.ft.com/content/0f179c8d-aa60-41d4-96d7-5d53e78c3514?sharetype=blocked
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