Polkadot Project Seems To Be Having Troubles Despite Having a Valuation of $1.2 Billion
- Polkadot might not be able to be valued at $1.2 billion
- Sources says the firm would be valued at under $1 billion
It seems that Polkadot’s project is not going to be valued around $1.2 billion, at least in the short term. The company is trying to gather $60 million through a private token sale, but the investors interested in the project are paying prices that would value the project under $1 billion. This is according to a recent report released by CoinDesk.
Polkadot Might Be Valued Under $1 Billion
The Switzerland-based nonprofit seems to have some interested buyers that are expected to invest as much as $15 million in the project’s DOT tokens. At the moment, there is no information about how many tokens the Chinese investors purchased or how many investors are interested in the project. However, one of the sources said that Polkadot was only able to sell 70 percent of the 500,000 DOT.
Although the firm can close the funding round here, the company wants to distribute them to community contributors if they are not able to sell them to accredited investors. Considering that other investors would participate at similar valuations, the remaining 30 percent of the tokens would not bring the necessary funds to reach the full $60 million. Indeed, Polkadot would have to increase the allocations of tokens to reach that value.
Polkadot wants to work on its mainnet, incentivize developers and also fund Web3 Foundation’s research and operations. At the moment, Polkadot is one of the projects that the community has been waiting for a long period of time. The intention is to build a blockchain network to enable other blockchains to be connected with each other.
According to Parity CEO, Jutta Steiner, the firm is waiting for Polkadot to bring new possibilities to the space:
About it, Steiner commented in a statement:
“True interoperability delivered in a scalable, governable protocol has real potential to push the dream of an open internet forward. We’ve been hard at work over the past year building [custom-blockchain platform] Substrate and development on Polkadot has progressed as hoped.”
The Web3 Foundation is also planning to conduct another public distribution of tokens when Polkadot launches. This would help DOT tokens reach the hands of those that want to participate in the network.
In addition to it, five percent of the total supply of DOT tokens was allocated for the latest fundraising. The company was expecting to receive a $100 or $120 per coin, considering their goal was to reach $60 million.