By George Ward
Hydra Ventures, a blockchain-based investment firm, has announced that it now possesses $10 million, which it plans to invest in other DAOs (decentralized autonomous organizations) focused on investment. Several firms, including ConsenSys, 1kx, Wicklow Capital, Seed Club, and Collab+Currency, partook in this investment round.
Hydra Ventures is a “funding firm” that helps other investment-based DAOs raise funds on behalf of their DAO communities. According to data from DeepDAO, there are over 40 such DAOs.
A decentralized autonomous organization is an organization that operates on the blockchain and is managed by holders of its cryptocurrency. They cast their votes on issues concerning the management of the DAO.
According to the firm, Hydra Ventures believes that the industry of investment DAO will keep expanding, and ecosystem members are better equipped to evaluate investments than a traditional investment fund controlled and managed by only a few chosen partners.
DAOs Vulnerability Tested In Court
Plaintiffs who accused the bZx protocol and its DAO governance token holders of being negligent and responsible for losses that resulted from hacking that emptied its treasury have won a court ruling in California.
The class action lawsuit against bZx, founders, and software developers Hashed Labs and Leveragebox LLC was launched last July. However, the court discharged specific claims, including accusations of founders Kyle Kistner and Tom Bean’s liability for breaching their fiduciary obligation.
The case arose from a hack that led to a loss of $55 million from bZx two years ago after a developer accidentally downloaded an email attachment infected by malware. The attacker drained the wallet of BZRX tokens, as well as other virtual assets such as ETH.
This hack was one of the attacks suffered by the protocol in 2020. In one of the hacks, the platform recorded a loss of $8.2 million, while the remaining two involved a loss of $350,000 and $630,000.
The ruling clarifies the ambiguities surrounding DAO liability and governance, particularly in the fast-evolving DeFi ecosystem.