(BlockBar) Since January this year, the Swiss non-profit organization Web3 Foundation behind the project has been trying to raise nearly $60 million through private token sales. It is said that three Chinese foundations have agreed to invest a total of $15 million in the DOT tokens of the project. However, according to the average price paid by the three investors, the overall valuation of the project will be less than $1 billion, which is far below the capital threshold required by the reported Polkadot known as the Unicorn.
Although it is not clear how many tokens these three Chinese foundations have purchased, it is also unclear how many investors are involved besides them. But a source said Polkadot sold only half a million tokens, accounting for only 70% of the original plan. Polkadot will continue its efforts to sell the remaining tokens to qualified investors, and some will be distributed free to community contributors, rather than ending private financing now.
Moreover, assuming that other investors are involved in valuations similar to those of the three foundations, the remaining 30% of the tokens will not yield the expected returns. To raise all of the $60 million, Polkadot needs to increase its token sales quota. Web3 said in a statement that it could not comment on any private sale, “but we look forward to publishing this information as soon as possible.” It is also reported that money raised by the sale would be used to test Polkadot’s main network, motivate developers and fund the research and operation for further Web3 Foundation.
Polkadot is a highly anticipated block chain project that has not yet been launched. Polkadot, created by Gavin Wood, co-founder of the Parity Platform and co-founder of Ethereum, aims to build a block chain network so that other block chains can collaborate with each other. Cosmos, another competitor with similar goals and a similar commitment to collaboration, was launched in March this year.
Jutta Steiner, another CEO of Parity, said in a separate statement that “Polkadot has real potential to drive the dream of open Internet forward. Over the past year, we have been working hard to build the base of the customized platform and make Polkadot progress as expected. But Steiner’s statement did not mention ongoing token sales. The Web3 Foundation still plans to re-issue tokens before and after the launch of the Polkadot Block Chain, claiming: “Our goal is to ensure that DOT tokens are actually delivered to those who are actively involved in the construction of the Polkadot network.”
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