Tokens for the Polkadot protocol are being provided on secondary markets at closely discounted charges, The Block reported on Might 23.
Quite a few main crypto funds and buyers advised the web site that over-the-counter (OTC) desks had given them the prospect to purchase giant volumes of DOT tokens.
Polkadot, a blockchain interoperability protocol created by Ethereum co-founder Gavin Wooden, bought its official presale tokens at $30. The personal sale worth is $120 — and it's believed at the very least one secondary deal has gone via, with the customer receiving a 50% low cost.
Such offers aren't with out dangers, The Block notes. In addition to bringing Polkadot’s potential valuation of $1.2 billion into query, sellers might be violating agreements they've signed by orchestrating third-party gross sales. Moreover, as consumers are buying tokens they may solely obtain sooner or later, there's a hazard that untrustworthy sellers might maintain on to the tokens for themselves.
Buyers informed The Block that they might nonetheless have an interest within the alternative, offered that the tokens have been being bought at a closely discounted fee. Others stated that they had aborted deliberate purchases as a result of the sellers seemed untrustworthy, or as a result of that they had failed to finish due diligence checks.
Nevin Freeman’s stablecoin firm Reserve was focused by scammers who created a pretend OTC marketplace for its tokens. He informed the web site:
“I would like individuals to know concerning the risks of a few of these second-hand token gross sales. I need to warn them.”
The Polkadot protocol is a type of “para chain” that hyperlinks several types of blockchain collectively.
