Ethereum Competitor Polkadot Closes Token Sale at $1.2 Billion
Polkadot Protocol, the first project out of Web3 Foundation (W3F), closed its second private sale of tokens selling 500,000 DOT (five percent of the total supply). This operation confirms an evaluation of around $1.2 billion. This based on a report from crypto publication The Block June 27, 2019.
Successful Round for Polkadot
Polkadot, a future multi-chain platform, just closed a successful private sale of 500,000 DOT tokens bringing its total evaluation to nearly $1.2 billion. The figure invested was not specified, but considering the number of tokens sold, it is estimated that Polkadot raised around 60 million dollars at 120$ per token.
The Web3 Foundation is the Swiss association in charge of the project and which manages the token sales. Select investors were chosen for this round to buy large volumes or other projects that could build on Polkadot’s protocol. One such project includes the AragonOne project, a DAO creation and management platform, which aims to launch its native blockchain, Aragon Chain, on Polkadot.
Jack Platts, Web3 Foundation Director of Communications, explained that the team is working on strategic partnerships to ensure that once the project goes live, there will be enough members in the community to build parachains, an innovative scalability solution that facilitates seamless transactions between different blockchains.
Tokens are distributed in the form of Simple Agreements for Future Tokens (SAFTs) which means they can be redeemed once the protocol goes live. However, not everyone seems to respect this condition. Over the counter (OTC) trading desks are currently swapping DOT tokens for anywhere from $75 to $120 against the will of Web3 Foundation.
With this round, a total of 5.5 million DOT tokens were sold, and it is expected that 1.5 million will be available for later sale. The rest of the three million is reserved for the Web3 Foundation to oversee Polkadot’s development.
Polkadot has captured the interest of various investors and members of the crypto community by presenting itself as an innovative project capable of building a blockchain network that can enable other blockchains to work in conjunction with one another.
As explained previously on BTCManager, the protocol leverages a staking feature called Nominated Proof of Stake (NPoS), which allows for a more decentralized governance implementation relative to PoS consensus.
The launch is scheduled for the end of 2019 and only then will the crypto space be able to see if the proposed solutions are indeed valid.