Solana-Based Sports Betting Protocol BetDEX Closes $21M Seed Funding Round

BetDEX has raised a $21 million seed spherical to create a decentralized international sports activities betting protocol.

In the announcement Wednesday, the Edinburgh-base BetDEX referred to as the elevate the “largest-ever seed funding spherical by a U.Okay. startup.”

The crypto derivatives alternate large FTX and San Francisco-based crypto enterprise agency Paradigm led the spherical, which additionally included participation from Lightspeed Venture Partners, Sino Global Capital and Solana Ventures.

Scotland-based BetDEX is constructing its protocol on the Solana blockchain with hopes of changing into “a world clearinghouse for sports activities wagering,” in accordance with a blog post.

Third events will be capable of use BetDEX’s back-end infrastructure to run their betting platforms, which takes benefit of Solana’s excessive transaction speeds and low charges. BetDEX says its protocol will cost a price of lower than 1% on internet winnings, undercutting centralized rivals like FanDuel and DraftKings who sometimes cost 2%-5%.

The firm additionally plans to construct its personal betting platform on the protocol, which has but to be named. BetDEX will settle for wagers in USDT, SOL and SAMO at launch, in accordance with the announcement.

The firm is led by three former executives of FanDuel, which holds 36% of the present on-line sports activities betting market share. Nigel Eccles, who serves as BetDEX’s non-executive chair, is a FanDuel co-founder and served as the corporate’s CEO.

With the U.S. crypto betting market nonetheless in its infancy, BetDEX is concentrating on European and Asian markets, an organization spokesperson advised CoinDesk. Wyoming is presently the one U.S. state with legalized cryptocurrency sports activities betting.

“It is mind-boggling that extra sports activities wagering doesn’t happen on exchanges,” FTX CEO Sam Bankman-Fried stated within the BetDEX press launch. “We firmly imagine in giving customers the flexibility and management to set their very own worth and are excited to accomplice with BetDEX to deliver this imaginative and prescient to fruition.”

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