Cega Raises Additional 700 Million Yen
Cega Genesis Corporation, which is working on smart contracts for structured bonds, announced on the 28th that it has completed additional funding of approximately 700 million yen ($5 million).
Dragonfly Capital Partners, a crypto asset (virtual currency) investment company, acted as the lead investor, and Pantera Capital and Robot Ventures invested as underwriters. With additional expansion investment, Cega’s cumulative seed round funding amount is about 1.3 billion yen ($9.3 million).
Cega is the world’s first protocol that creates structured bonds that combine bonds and options on the blockchain. Cega’s staking products, structured notes with various option terms, offer superior yields, downside protection and compounded returns for investors.
Arisa Toyosaki, co-founder and CEO of Cega, told The Block, an overseas cryptocurrency media outlet, that a popular strategy at Cega is, “In the next 27 days, Bitcoin (BTC) and Ethereum (ETH) will increase by more than 50%. Bet that it won’t go down.” “If you do, you have a 90% chance of getting a 12% yield,” he said.
What is a structured bond?
Bonds that incorporate derivatives (financial derivative products) such as options and swaps into general bonds. Unlike ordinary bonds, the payment of principal and interest is subject to changes in financial indicators such as stock prices, foreign exchange rates, and various other indices. High yields can be expected.
Cega Genesis Corporation will be on stage at the Web3 conference “WebX” hosted by CoinPost.
connection:Web3 conference “WebX” promotion movie released
Deploy to Ethereum
Cega has led the structured bond market in decentralized finance (DeFi). Since its launch on Solana (SOL) in June 2022, the TVL (locked asset value) of structured bonds using options has risen to approximately 6.5 billion yen ($50 million) at one point.
However, due to the FTX crisis that occurred in November 2022, investors withdrew their funds from Solana, and Cega’s TVL is around 800 million yen ($6.3 million) at the time of writing.
The funding will allow Cega to begin rolling out to Ethereum (ETH) as early as next week and accelerate the expansion of its new product line, including leveraged options.
In addition, a new trading team called “Tras Mobian” will be established to introduce market making. Explore product development for other CeFi (centralized exchange) and DeFi platforms in the future.
According to Mr. Toyosaki, “SAFE + TLS (stock acquisition rights + option to receive future tokens)” was adopted in the investment contract with VC for this additional expansion investment. Although the valuation was not disclosed, it is said to exceed the valuation at the time of the seed round in March 2022 (approximately 7.8 billion yen: 60 million dollars). It has been suggested that it will issue its own token, but no specific timing has been stated.
connection:Cryptocurrency selling dominates in CFTC lawsuit against Binance, XRP rises in retrograde over Ripple trial