- The latest token sale from Polkadot cleared out 500,000 DOTs.
- There are still 1.5 million DOTs available to sell from Polkadot.
Polkadot is the first project to come from the Web3 Foundation, which is based in Switzerland. According to reports from The Block, the most recent token sale has spread 500,000 DOTs amongst the cryptocurrency community. While the price has not been specified, the company stated that these tokens were distributed at a “successful” value.
Details regarding how much the foundation raised have also not been released, but it appears that the sale is helping the company to reach the $1.2 valuation that the Wall Street Journal recently reported this year. In the most recent round, the company sold 5% of the token supply, which means that they should have accounted for $60 million raised. However, at this point, Polkadot has refrained from confirming or denying this figure.
The goal of Polkadot is to develop a decentralized internet, which would make it possible to communicate with cross-chain messaging, involving different blockchains. This connection would also improve scalability and interoperability. The first client is scheduled to launch in the third quarter and is presently written in the Rust coding.
The DOT sales are managed entirely by W3F, and they have allegedly been offering discounted sales for investors that want to make larger purchases in the token sale, or projects that could build upon the protocol. However, there have been many rumors around the latest sale, and CoinDesk even suggested that the $1 billion valuations could “elude the project,” receiving their information from
However, The Block was the first one to report that tokens from the original sale have already been discovered on their way to a secondary Asian market, which are now being sold at $60 to $80 per DOT, which is a major discount. Based on the current data, it appears that the value of each dot is approximately $120.
The first token sale took place in October 2017, and there were 5 million DOTs issued in the process, issued for $144 million, bringing the average cost per DOT to $28.80. Jack Platts, the director of communications for W3F, spoke with The Block in January, saying that they are presently “working with strategically aligned projects to ensure they have access to DOTs.” Furthermore, Platts expressed that these projects have DOTs as soon as the network is live, ensuring that they have a “vibrant community of parachains.” The DOTs will ultimately be used for governance voting and staking.
All of the tokens that are distributed come in the form of Simple Agreements for Future Tokens (SAFTs), which means that the investors immediately have the rights to the tokens after the protocol officially is live.
Jutta Steiner, the CEO of Parity, is part of the efforts to build up the Polkadot protocol, though she spoke about the issues surrounding token ownership with The Block in January. At the time, she said that the goal of this protocol is to establish “broad distribution to avoid collusion,” adding that she is hoping for the holders of the DOTs to end up adding to the system in
“some meaningful way.”
Presently, there are still 1.5 million DOTs that still can be sold in the next sale. At this point, private investors have purchased 5.5 million DOTs, while another 3 million are presently reserved with Polkadot for their ongoing development. The Lightpaper for Polkadot indicates that there is a maximum of 10 million genesis block DOTs.