In early December, the Huobi exchange announced a plan to invest $5 million in Polkadot ecosystem projects.
Ethereum co-founder Gavin Wood is behind the Polkadot Interoperable Project (DOT), which has gone up 47% in the last 7 days. The 2017 ICO raised 145 million dollars in two weeks by selling 5 million tokens.
Gavin is a co-founder of the Web3 Foundation and a client, Parity, of the Ethereum network. In short, his struggle to integrate different blockchains is old.
Interestingly, a smart contract failure tied up 66% of the ICO’s revenue. In any case, the project continues with resources, in part coming from the Web3 foundation.
Another striking fact is that its testnet, launched in August 2019, has its own exchange-traded token called Kusama (KSM). Believe it or not, the token is one of the 50 largest cryptographs, with a market value of 560 million dollars.
Phase 1 of the Polkadot mainnet (proprietary network) took place in May 2020, but the actual launch of the Staking and Validators functionality took place in August. After four months of stagnation at around US$5, the DOT token finally took off, reaching its peak of US$7.78 on October 30.
Chinese Pump seems to have leaked before
The China Public Blockchain Service (BSN), financially supported by the government, announced on 25 November the integration of Polkadot, along with Oasis Protocol and Bityaun. Interestingly, DOT had a 25% increase in the 5 days preceding the announcement.
Finally, it is very difficult to judge whether the news is relevant, or whether it just gives the investor peace of mind that China will not create difficulties for the integration of local blockchains into the Polkadot ecosystem.
Exchanges dispute market
Another major draw for Gavin Wood was the improvement in the ICO process, the initial token offerings. In the new system, called parachain, the proceeds are locked in a smart contract until certain conditions are met.
In early December, the Huobi exchange announced a plan to invest $5 million in Polkadot ecosystem projects. In the same week, the project announced a partnership with Chainlink (LINK), which would act as a validator for DOT.
The dispute caused Binance to announce a $10 million fund on December 23. In a similar way to Huobi, he guaranteed that the good projects launched at Polkadot would be listed on the exchange. In fact, the first project, Reef Finance (REEF), has already been listed at Binance.
Finally, on December 30th, OkEX announced the Polkadot staking. In short, everyone wants a slice of this new market, especially after the Kusama testing network (KSM) has become one of the 50 largest cryptoactives.