Grape raises $1.8 million after Solana crash

September 24, 2021

Grape Network, the project behind the Solana blockchain crash last week has raised $1.8 million from venture capital firms as part of its initial decentralised exchange (DEX) offering.

In a round headed up by Multicoin Capital, the community toolkit developer closed in $1.2 million; a funding amount that comes just off the bat of the public sale. The public sale, which saw Grape pull in $600,000, was a key part of the reason behind Solana’s server overload. As the blockchain host for Grape, Solana saw a 17-hour black off of service when the network was flooded with bot buyers.

According to an interview with CoinDesk, Grape Network founder Dean Pappas confirmed that Grape was “part of the reason [Solana] got broken” also he also noted that the “didn’t break it out of intention.”

What is Grape Network?

Grape Network is a blockchain-focused startup that offers tools for Decentralised finance (DeFi) and non-fungible token (NFT) projects to build and manage through formal communities called decentralized autonomous organisations (DAOs). At just five months after its launch, the Grape Network is already proving that it will be an essential platform and toolkit on the Solana network. If the success of the token sale is anything to go by, there’s a great deal of potential for Grape to position itself as a major part of the network and offer use-cases to crypto and NFT enthusiasts.

The implications of Solana’s crash

Grape Network, although receiving interest, still remains a niche in the field. The flooding that led to Solana’s crash calls into question the integrity of the tech of the blockchain. While the platform released an overview explanation, project leads still plan to use a full post-mortem of the outage in the next few weeks.

Pappas pointed out that the bots were set up to attack the market and buy in as rapidly as possible, saying that the automated purchasing was too much for the blockchain:

“The last IDO before $GRAPE went up who knows how much,” he said. “Everybody knew that this was going to be doing very well, so that’s why these bots were set up to do 400,000 transactions per second, attacking the Serum market.”