Crypto Venture Capital firm DeFiance Capital is in the process of raising up to $100 million as it looks to invest in “liquid tokens.”

According to three sources familiar with the matter speak According to The Block, the fund is called the “Liquid Venture Fund,” with one of the sources claiming that more than 50% of the projected capital had been raised.

DeFiance Capital is proud to be a “Three Arrows Capital sub-fund and share class” of crypto hedge fund giant Three Arrows Capital (3AC). However, when the Su Zhu-led firm collapsed in June due to its exposure to the collapsing Terra ecosystem, DeFiance Capital denounced its comprehensive partnership with 3AC.

The VC led by Arthur Cheong went on to say that it is a separate entity that was managed independently of 3AC after the latter’s liquidation. That DeFiance Capital has not gone bankrupt is a testament to its strong financial position at this time.

The firm is known as one of the main backers of some of the iconic names in both the non-fungible token (NFT), decentralized finance (DeFi), and Web3.0 ecosystems. Specifically, DeFiance Capital’s core portfolio includes Axie Infinity, Avalanche, Solana, and ConsenSys, to name a few.

According to two of the sources, DeFiance Capital may not wait until 100% of the fund is raised before starting to inject the funds into the project’s liquid tokens. Liquid tokens are digital currencies that have already been or are about to be listed on a trading platform.

Some of the sources confirmed that the company has raised some of the funds from a crypto fund as well as some family offices. There is no idea if DeFiance Capital has earmarked the tokens it wants to invest in before completing the funds.

Fundraising through token sales is becoming very prevalent in the crypto world today and has been exploited by a number of protocols. including polygon and 1 inch in the past.

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