Ethereum (ETH) research and development company Flashbots is discussing a potential fundraiser of up to $50 million, according to a report published Thursday by The Block.
The startup aims to raise between $30 million and $50 million and reach a valuation of $1 billion, according to the report, which cited people familiar with the negotiations. It added that cryptocurrency venture firm Paradigm pledged to lead the investment.
Flashbots aim to mitigate issues associated with the maximum extractable value (MEV) centered on the Ethereum blockchain.
MEV refers to the maximum amount that miners can obtain by arranging transactions on the blockchain blocks. This runs the risk of putting too much control of the network in the hands of a few sophisticated actors with knowledge of SEM to profit from block mining at the expense of ordinary users.
Flashbots are working on ways to reduce the negative effects of search engine marketing through SEM enhancement, which allows validators to request blocks from a network of builders. The company claims to be responsible for about 60% of all Ethereum blocks, according to data on its website.
The platform came under fire last year amid accusations that it censors transactions linked to cryptocurrency mixer Tornado Cash, which was sanctioned by the US government in August.
Continue after the announcement
CoinDesk has reached out to Flashbots and Paradigm, but did not respond at the time this article was published.