Web3 market maker and investor DWF Labs is making strategic moves with a new $20 million fund aimed at Chinese web3 projects and founders. Named the Cloudbreak Fund, this initiative is designed to provide substantial investments and essential resources to foster development.

Andrei Grachev, managing partner at DWF Labs, emphasized the firm’s ongoing efforts in Chinese-speaking regions since 2018. He highlighted the “tremendous growth” of projects in these areas over recent months and noted that the new fund aims to help them “realize their full potential.”

Grachev also pointed out that the launch of Cloudbreak coincides with a market downturn and aims to “reinvigorate projects” by enhancing their ability and “willingness to continue building.” The fund targets a broad range of sectors, including layer-1/layer-2, memecoins, derivatives, Social Finance (SocialFi), gaming finance (GameFi), and AI projects. Projects in these sectors are encouraged to apply for the fund.

DWF Labs has a notable history of investments to strengthen development in the Web3 space. Recently, the firm led a $5 million investment round in the Milady meme coin project and supported the cryptocurrency information platform DropsTab in May.

The firm has also backed major blockchain networks like the Telegram Open Network (TON) and provided funding for the integration of cryptocurrency custodian Fireblocks. According to DWF Labs, it has a partner network of over 700+ projects and has been rated as Bybit’s best liquidity provider in 2024. The firm believes it is well-positioned to assist projects working with asset tokenization.

Despite its deep roots in the investment space, DWF Labs recently found itself at the center of controversy with crypto exchange Binance.

In May, Binance’s investigative team alleged that DWF Labs was involved in market manipulation, claiming the market maker artificially inflated trading volume on certain exchanges. DWF Labs denied these allegations, calling them unfounded. In April 2023, crypto commentator Nay accused the market maker of dumping $65 million worth of tokens in projects it had invested in.

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