Telos raises $8M funding earlier than EVM launch to keep away from token gross sales
Blockchain platform Telos raised $8 million in funding led by ConsenSys and Polygon investor John Lilic. The funding was secured proper earlier than the launch of Telos’ Ethereum Virtual Machine (EVM) platform, ending the corporate’s ongoing streak of bootstrapped initiatives.
Telos goals to redirect the not too long ago secured capital on the platform’s improvement and advertising along with enhancing the liquidity of the ecosystem “without needing to resort to TLOS token sales in the event of a prolonged bear market over the next year.” According to Telos chief architect Douglas Horn:
“While this [bootstrapping] preserved our identity as an egalitarian, self-governing community, it left us exposed to the risks of continuing to fund our explosive growth through extended bear markets.”
Speaking to Cointelegraph about transferring away from token gross sales, Horn stated that Telos goals to forestall centralized possession, which finally results in whale trades because the community matures. “By having a fair community launch and a truly decentralized operation, Telos also avoids regulatory scrutiny at the highest level possible for any crypto,” he added.
The $8 million funding was supported by a bunch of 5 distinguished crypto traders, who intend to assist Telos with “deep industry connections and deal-making expertise” to assist fast-track exchange listings and decentralized finance initiatives.
As part of the deal, the traders obtained 1.7% of the entire TLOS token provide:
“The investors entered the agreement via a community liaison when $TLOS tokens were trading at $0.90 USD and agreed to pay a $0.10 USD premium on the market price.”
This deal resulted within the whole sale of eight million TLOS tokens, with not one of the traders exceeding two million tokens in holding. At the identical time, Horn believes that exterior investments will assist Telos develop with out risking “sacrificing token support or community sustainability.”
According to the corporate, the fundings are hosted on the in-house community’s Ethereum Gnosis secure, which will likely be redirected to advertising through Telos Foundations, improvement through Telos Core Developers and the Telos liquidity fund.
Related: Ethereum competitor Near launches $800M developer fund as DeFi competitors heats up
In a bid to overhaul Ethereum within the DeFi market, good contract ecosystem Near Protocol secured an $800 million funding in late October towards enhancing the ecosystem’s decentralized finance capabilities.
As Cointelegraph reported, Near’s funding included a $350 million grants program, which incentivizes builders to create purposes on the blockchain. About $250 million has been allotted to current ecosystem builders whereas $100 million has been put aside for startup grants. The remaining $100 million will likely be spent on regional initiatives throughout Asia, Europe and the United States.