Polkadot has been a long time in the making and was expected to be valued at $1 billion before the launch of its mainnet. However, the target seems to elude Gavin Wood’s brainchild.
The blockchain’s managing non-profit company, Web3 Foundation, is trying to raise $60 million since January, via a private token sale. The foundation has managed to rope in three Chinese investors for $15 million each for the DOT tokens, which make it fall short of the $1 billion valuation target. A number of tokens sold to the Chinese investors remain unknown. However, Polkadot has reportedly managed to sell only 70% of the initially intended 500,000 tokens.
Polkadot is touted to be the blockchain of blockchains, as it will facilitate interoperability between multiple networks in one single network. Gavin Wood aims to build a network where all blockchains can work in conjunction with one another. However, Polkadot will not be the first network to do so. Cosmos Chain, which is also intended to be the blockchain of blockchains, was launched earlier this year in March.
Wood is also the founder of Parity Technologies, the tech brain behind Polkadot. The company’s CEO Jutta Steiner said,
Parity is excited about the new possibilities Polkadot brings to the table. 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.
Out of the total supply of 10 million tokens in October 2017, Web3 Foundation managed to sell 50% or 500,000 tokens for $145 million, valuing the token at around $30 apiece. And from the remaining 500,000 tokens, 30% or 300,000 tokens were reserved for Web3, while the rest were to be distributed at the time of Polkadot’s mainnet launch. The foundation has spent half of its reserves, and now possesses only 15% of the total supply.
After reportedly selling 70% of 500,000 DOT tokens for private sale, the platform is still well short of its expectation. If it sells the remaining tokens at the current value, it will not be able to hit the $1 billion valuation mark.