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

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

In the announcement Wednesday, the Edinburgh-based BetDEX known as the increase the “largest-ever seed investment round by a U.K. startup.”

Exchange 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 global clearinghouse for sports wagering,” in response to a blog post.

Third events will have the ability to 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 web winnings, undercutting centralized opponents 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 response to 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 at the moment the one U.S. state with legalized cryptocurrency sports activities betting.

“It is mind-boggling that more sports wagering does not occur on exchanges,” FTX CEO Sam Bankman-Fried stated within the BetDEX press launch. “We firmly believe in giving consumers the ability and control to set their own price and are excited to partner with BetDEX to bring this vision to fruition.”