Who said that Initial Coin Offerings (ICOs) was dead? Well, a lot of people, actually. With the disappointment over the ICO craze that happened in 2017, investors are giving considerably less money to ICOs today.
However, some companies do not seem concerned about this reality at all. Polkadot is one of these companies. The blockchain project is now seeking the value of $60 million USD via an Initial Coin Offering, the kind of value that is hard to get these days.
The Wall Street Journal reported on this story yesterday, January 24, and used inside sources to affirm that the idea of using the ICO would boost the value of the company’s tokens to $1.2 billion when the new tokens enter in circulation.
What makes Polkadot different from all these other companies is that it has raised $145 million USD already via token sales way back in October 2017, so this is far from a startup company without anything to show. At the time, the company even faced some difficulties as a bug made $98 million USD of its money be stuck on a Parity wallet, but they solved the case easily.
In fact, Polkadot is actually a huge name in the market. The company was founded by a big star dev, Ethereum’s co-founder Gavin Wood, which is only less known that Vitalik Buterin. Wood owns Parity Technologies and the Web3 Foundation, so you better believe that he knows what he is doing now. Polkadot is a blockchain protocol that uses a “proof of concept” idea and it went live in May 2018.
Its main function was to allow blockchain networks to communicate with each other more easily without needing to change their structure with updates or hard forks. The decision making is now in the hand of the DOT token holders, the same tokens that will be sold on the ICO.
With the internal token, a user can vote on code changes that will happen on the protocol when the network is upgraded. The official Polkadot network will be launched, according to Parity and Web3, in the second half of 2019, most likely in the third quarter of the year.
Will The ICO Be Successful?
With such a bad ICO market, one has to ask whether Polkadot stands a chance. There are some aspects that can lead us to believe that it will, in fact, become a success.
Right now it's harder for an ICO to raise funds, but mostly for unknown companies. If you have big names or something to show, the investors are far more likely to trust your project, which will affect how successful it will be.
With Gavin Wood and a technology that already works, $60 million USD doesn't seem like much, especially now that the market has begun to stabilize.