Funding Krux is a good thing, but it's only done because the project has no traction.

Exactly why SeedSigner was not funded - it has major traction.

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Are grants subsidizing failed projects or are they giving them a second opportunity?

Who the fuck knows, they're wasting tons of monies though.

I predict most of their efforts will go rancid.

You are probably right about this because I don't see any other fundamental difference between Krux and Seedsigner.