Key Takeaways
- OKX launched its own L2, X Layer in 2024.
- The crypto exchange is preparing to launch a $100 million ecosystem fund to support builders.
- The figure is more than Coinbase has spent on an equivalent ecosystem fund for Base.
OKX intends to launch a $100 million fund to support the ecosystem around its Layer 2 network, X Layer.
The figure promises to make a splash in the world of crypto venture, even outgunning Coinbase, which has spent an estimated $35 million on an equivalent fund for its own Layer 2 (L2) ecosystem.
OKX Allocates $100 Million for X Layer Ecosystem Support
Launched in 2024, X Layer is OKX’s Ethereum L2.
Using OKB as its gas token, the platform is designed to enable low transaction fees and scalable, affordable Web3 development.
Announcing plans for a new $100 million fund on X, CEO Stay Xu said this initiative would “support global builders shaping the next wave of on-chain applications.”
Alluding to the kinds of projects the fund would back, he added:
“If you have long-term vision and real technology, we’re ready to be your partner. But if your goal is just a quick pump-and-dump token, we’re not the place for you.”
Layer 2 Competition
Star’s announcement signals a major investment for OKX as competition in the exchange-operated L2 space heats up.
Based on key metrics like transaction volume and total value locked, Coinbase’s Base currently leads the pack.
However, with Robinhood and Bitget also entering the fray with their own L2 offerings, Web3 builders have more choice than ever when it comes to selecting a platform.
Against that backdrop, the allure of $100 million in venture funding make X Layer an attractive option.
Outspending Coinbase
X Layer isn’t the only L2 with a dedicated ecosystem fund. Coinbase launched a similar program for Base in 2023, operating under the umbrella of Coinbase Ventures.
Unlike OKX, Coinbase never stated exactly how much capital it would direct toward ecosystem support.
However, according to the investment tracker Crypto Fundraising, the Base Ecosystem Fund has invested in 16 rounds that raised a combined $60 million between them.
As such, even a generous estimate of the fund’s investments so far don’t come close to OKX’s headline nine-figure bet on X Layer.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
