Warden Protocol recently dropped a big news — a $4 million strategic funding round. Honestly, this is a bit surprising because the project team previously said in an AMA that there were no new fundraising plans, and then they dropped a major move right before TGE.

What’s a little confusing is that they directly valued themselves at $200 million. In the current market conditions, where does this confidence come from? Is this confidence in the project’s fundamentals, or is it a bit overconfident?

Thinking carefully, the logic between the funding amount and valuation needs to be considered. Investing $4 million to support a $200 million valuation results in a pretty high multiple. But the fundraising model for Web3 projects is inherently special; early-stage projects often raise funds based on potential, which isn’t unusual. The key still depends on how the funds are spent and what results the team can deliver.

Funding actions close to TGE are usually meant to give the project more leverage, but they can also raise questions among investors: why not raise funds earlier, and why wait until this point? Regardless, Warden Protocol’s move seems quite discreet. How things develop next is worth paying attention to.