Former Chainlink, Two Sigma execs build ‘Moirai’ to uncover crypto gems

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Ah, dear reader, gather ’round as we delve into the curious tale of Metalayer Ventures, a venture capital firm, if one can call it that, helmed by the illustrious former executives of Chainlink and Two Sigma. They have conjured a fund of $25 million, a veritable treasure chest, to invest in the nascent world of blockchain projects, with a particular fondness for stablecoins, tokenization, and the ever-elusive cryptocurrency infrastructure. 💰

In a rather audacious display of ambition, Metalayer has already cast its lot with seven companies, as revealed to the ever-watchful CryptoMoon on the fateful day of May 28. Among these ventures is AnchorZero, a platform that assists crypto founders in navigating the labyrinthine tax advantages of Roth IRAs—because who doesn’t want to save a few coins for a rainy day? ☔️

Then there’s Spark Capital, a new venture that has taken it upon itself to focus on the infrastructure of stablecoins. One can only imagine the conversations that must ensue in such lofty circles! Other portfolio companies include Ethena, ClearToken, Crossover Markets, Station70, and Theo—a project that has recently raised a staggering $20 million from 17 different VC firms. One must wonder, is there a secret handshake involved? 🤝

Metalayer, in its grand vision, plans to eventually support up to 30 companies, with early-stage rounds ranging from $500,000 to $1 million. A veritable smorgasbord of investment opportunities! 🍽️

Co-founded by the former head of growth at Chainlink Labs, Mickey Graham, alongside the illustrious Andy Kangpan and David Winton from Two Sigma, Metalayer is not without its ambitions. Winton, in a stroke of genius, developed a proprietary data platform named Moirai, which serves as Metalayer’s internal oracle for analyzing developer activity, protocol engagement, and the intricate patterns of blockchain transactions. Truly, a modern-day oracle! 🔮

“Moirai is our internal sourcing engine for identifying early-stage crypto startups,” Graham proclaimed to CryptoMoon, as if he were unveiling a new philosophical treatise. “The platform is designed to help us systematically surface high-quality startups, evaluating opportunities across several key dimensions.” One can only hope they have a good sense of humor about it! 😂

Crypto VC deals on the rise, but there’s a catch

In a twist of fate, crypto venture capital activity has seen a notable uptick in the first quarter, with both total funding and deal volume rising, according to the ever-reliable data from Galaxy Digital. A staggering $4.9 billion was funneled into the sector during this quarter, though one must note that nearly half of this sum emerged from a single deal—Binance, which raised a cool $2 billion from MGX, an investment firm backed by a sovereign wealth fund from the United Arab Emirates. Quite the windfall, wouldn’t you say? 💨

Despite the grandiosity of the Binance deal, the overall market activity has shown signs of improvement, with a total of 446 crypto funding deals recorded in Q1—a 7% increase from the previous quarter. One might even say the market is beginning to stir from its slumber! 💤

Yet, venture capital investors remain as cautious as a cat on a hot tin roof when it comes to making fresh commitments to the sector, as noted by Robert Lee, a senior analyst at PitchBook. The first quarter was fraught with challenges, as a sharp correction in crypto prices compounded investor reluctance. Ah, the fickle nature of fortune! 🎭

In an interview with Bloomberg last month, Lee lamented that many venture capital firms are still lurking in the shadows, hesitant to step into the light. “[M]any of the funds from the last cycle have yet to deliver meaningful DPI,” he remarked, referring to the private equity metric Distributed to Paid-In Capital, which measures how much capital has been returned to investors relative to what they invested. A rather disheartening statistic, indeed! 📉

Yet, Metalayer’s Mickey Graham posits that this drop-off may be attributed to a much-needed transition occurring beneath the surface:

“We believe the crypto industry has crossed the chasm from an early market defined by infrastructure-building to a mainstream technology sector characterized by the deployment of blockchain technology throughout the global economy.”

Although VC activity remains subdued compared to the exuberance of past bull cycles, Kadan Stadelmann, the chief technology officer of the Komodo Platform, shared with CryptoMoon that the industry has witnessed an “uptick in mergers and acquisitions, suggesting market maturation.” A sign of hope, perhaps? 🌱

Stadelmann further indicated that pro-crypto regulations in the United States and European Union have instilled confidence in large institutions to continue their investments into crypto firms. A curious turn of events, indeed! 🏦

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2025-05-28 16:21