Copy link
Increase text size
Decrease text size
Link copied

Blockchain protocol Polkadot sells 500K DOT tokens, claims on track its $1.2B valuation

Fri, 28 Jun 2019, 06:57 am UTC

Blockchain interoperability project Polkadot has reportedly sold 500,000 DOT tokens at the targeted valuation of $1.2 billion, according to The Block.

The protocol is the first project of Web3 Foundation (W3F) that aims to create a decentralized internet. If successful, it will enable cross-chain messaging between different blockchain networks that will allow interoperability and scalability.

As per the report, Polkadot sold 5% of its total token supply, which should theoretically raise $60 million to the protocol’s managing team. However, it is unclear if W3F really hit its full target.

According to CoinDesk, three Chinese funds agreed to pay prices that will value the project below $1 billion on average. From the list of investors released by W3F last Thursday, none of the three Chinese funds were included. Thus, it is not clear how many of the 500,000 DOT tokens were bought by them.

Notably, the DOT allocation was not increased either. So even if all other investors paid the full price, it is unlikely for W3F to secure the full amount.

In addition, The Block noted that W3F may have also given huge discounts to investors with large volume purchases or projects that can build on their protocol. Also, some tokens from the first sale round are reportedly being sold onto a secondary market in Asia at highly discounted prices, between $60 and $80 per DOT. On a fully diluted basis, the current valuation of each DOT should be at $120.

The DOT tokens are distributed via Simple Agreements for Future Tokens (SAFTs), which allows gives investors the rights to the token as soon as the protocol goes live. Currently, 5.5 million of DOTs have been sold to private investors, 3 million reserved for W3F, and 1.5 million available for subsequent sales.

Meanwhile, proof-of-stake based blockchain protocol Algorand has raised more than $60 million in a token sale conducted on CoinList, selling out all its allocated 25 million Algos, its native asset, in less than 4 hours due to an oversubscribed global demand.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $8,466.21 (+1.49%)
  • Ethereum (ETH) $163.96 (+1.97%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $332.68 (+7.27%)
  • Bitcoin SV (BSV) $268.65 (+3.47%)
  • Bitcoin (BTC) $8,466.21 (+1.49%)
Jan 24, 2020 (Friday)
Ripple CEO Brad Garlinghouse hints at the possibility of IPO
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Japan ruling party lawmakers to propose digital yen in February: Report
Hackers becoming more sophisticated as crypto exchanges bolster security measures: Chainalysis
Crypto Technicals: XRP/USD slips below 21-EMA, more weakness to follow
Tether launches new stablecoin backed by physical gold
Crypto exchange ErisX partners with Etale to offer new trading features
World Economic Forum launches blockchain-based supply chain traceability platform
Crypto Technicals: LTC/USD holds above 51 mark, finds strong support at daily cloud
Liechtenstein's Financial Market Authority approves ethereum-based real estate tokenized fund
Greece to extradite alleged BTC-e operator Alexander Vinnik to France after supreme court ruling
Agribusiness blockchain initiative Covantis selects ConsenSys as technology partner
Crypto exchange Binance invests in blockchain startup Numbers
Crypto Technicals: ETH/USD holds above 21-EMA and cloud support, further weakness on charts
Indian IT firm Mphasis to develop blockchain privacy-enhancing tech solutions with QEDIT
Crypto Technicals: BTC/USD extends weakness, eyes next major support at 110-EMA (8134)
Jan 23, 2020 (Thursday)
Amun lists inverse bitcoin ETP on SIX Swiss Exchange
World Economic Forum creates framework to help central banks design and deploy CBDC
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.