Ethereum Co-Founder’s New Crypto-Project Now Worth $1B

Polkadot, one of the most highly anticipated blockchain projects that have yet to launch, already has a staggering $1 billion valuation, and DOT token sales aren’t even over yet.

As reported by CoinDesk, and according to people familiar with Polkadot’s private token sale, 3 Chinese investment funds have agreed to invest $15 million in the project’s DOT tokens. However, these investors reportedly agreed on prices that value the project below $1 billion, which is no longer the case.

70% of DOT Tokens Sold

The report goes on to state that it’s unclear how many tokens the 3 Chinese funds purchased and at what price, but a source familiar with the matter said that Polkadot has only been able to sell 70% of the intended 500,000 DOT in the private token sales.

If the project intends to raise the remaining 30%, Polkadot may need to increase the allocation of tokens for sale, as they are currently trading at a premium anywhere from $75 to $120 each over-the-counter (OTC).

Moreover, sources speaking to CoinDesk said:

“Proceeds from the sale are to be used for testing Polkadot’s mainnet, incentivizing developers and funding Web3 Foundation’s research and operations.”

Polkadot Token Distribution

In October 2017, the Web3 Foundation raised $145 million through a public token sale of half of the 10 million DOT token supply, valuing the tokens at $30 a piece.

Currently, Polkadot is only selling DOT tokens to accredited investors through their private token sale, but intend to do another public token sale at or around Polkadot’s launch.

The Web3 Foundation reportedly said in a statement:

“Our goal is to ensure that DOT tokens make it into the hands of those that will actively participate in helping build out the Polkadot network.”

Moreover, according to Polkadot’s whitepaper, following the public DOT token sale of 50% of the total supply, 30% of the total token supply is to be reserved for Web3 Foundation, and the remaining 20% is to be distributed prior to the mainnet launch.

According to sources, Web3 has already spent half of its allocation, leaving it with 15% of the total supply.

Will you participate in Polkadot’s final public token sale when they have it? Let us know in the comment section below.