NuCypher Secures Nearly $11 Million Led by Bitmain, Polychain for SAFT Encryption Project

An encryption startup called NuCypher has been able to raise around $10.7 million USD via a new agreement to sell future tokens. The investment round was led by Polychain Capital, a prominent venture capital firm.

Other prominent investors included Bitmain, Y Combinator Continuity Fund, Hashed, Arrington XRP Capital, Bitfury, Compound VC, Notation Capital, and CoinFund.

The product created by NuCypher is based on the proxy re-encryption technology, which is important because it allows files to be encrypted and for administrators to grant and revoke access to them as time passes.

This company, which was originally created in 2015, started to use the blockchain tech back in 2017. CEO MacLane Wilkison affirmed that the new investment comes during the launch of the company’s mainnet. According to him, the public testnet was used and tested for around two years and now the network is ready for the full launch.

All of the investors agreed to use the tokens that were bought as staking nodes for the network. According to Wilkison, this helps in the decentralization of the network and it allows the traders to earn more tokens, too.

This time, the investors bought 8% of the total supply of tokens. 31% of them were sold before now, meaning that 61% of the tokens were still not in the market. The node operators are paid for securing the network with more tokens, which are released regularly. The idea is that the rewards will decrease and, with them, the inflation of the network.