ETH Co-Founder Gavin Wood’s Blockchain Protocol Plans $60 Million Second Token Sale: WSJ

This article was corrected to reflect the nature of the Polkadot protocol, which had been labelled a startup, and its second planned token sale, which had been reported as an ICO.

Blockchain interoperability protocol Polkadot (DOT), created by Ethereum (ETH) co-founder Gavin Wood, is reportedly aiming to raise up to $60 million in an additional planned token sale. The Wall Street Journal (WSJ) reported on the fundraising on Jan. 24.

Citing sources familiar with the matter, the WSJ reports that, if successful, Polkadot’s token sale would bring the fully-diluted market value — or the value of all tokens in circulation, plus those not issued — of its tokens to $1.2 billion.

The Polkadot protocol, which is developed by Parity Technologies with ecosystem support from the Swiss Web3 Foundation, reportedly aims to solve issues with blockchain interoperability. Namely, the tech is designed to increase the compatibility between different blockchains, such as Bitcoin’s (BTC), and networks of other decentralized crypto platforms.

Web3 Foundation’s director Ryan Zurrer, a former partner at Polychain Capital, claimed that Polkadot’s tech is set to launch in the third quarter of 2019.

Previously, Polkadot raised about $144 million in its first token sale in October 2017, with key investors including Boost VC, Pantera Capital and Polychain Capital, as the WSJ reports.

According to Polkadot’s light paper, a second token sale was planned at the time of the first sale, with 20 percent of the tokens reserved for either later sales or other distribution. The published total breakdown of the tokens will then leave the Web3 Foundation with 30 percent of the tokens, with 50 percent already sold in the first token sale.

In December, Cointelegraph reported that a research and development lab at crypto startup TenX has tested the use of its cross-blockchain interoperability protocol to transfer ERC20 tokens for Bitcoin using the Lightning Network.

As reported earlier this week, India’s Institute for Development and Research in Banking Technology issued a blueprint on blockchain implementation in the banking system, focusing on the aspect of connecting major industry players and banks by building an interoperable blockchain platform.