Funding Boost for Telos
In a surprising twist that’s sure to make even the most stoic investors crack a smile, Telos has secured a cool $8 million in funding. The investment was spearheaded by ConsenSys and noted Polygon investor John Lilic, just in the nick of time before Telos kicks off its Ethereum Virtual Machine (EVM) platform.
The Shift in Strategy
Telos plans to allocate this fresh capital towards platform development and marketing initiatives, all while enhancing liquidity in the ecosystem. And the best part? They’re looking to do this without having to resort to TLOS token sales, especially if we find ourselves stuck in a bear market for a while. Douglas Horn, Telos’s chief architect, elaborated on this strategy:
“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.”
Bye-Bye to Centralization
In his conversation with Cointelegraph, Horn made it clear that moving away from token sales was a deliberate strategy to prevent centralized ownership that often leads to whale trades as the network matures. He emphasized, “By having a fair community launch and a truly decentralized operation, Telos also avoids regulatory scrutiny at the highest level possible for any crypto.”
A Coalition of Crypto Investors
This funding round wasn’t just a solo adventure; it came with the muscle of five prominent crypto investors. Their goal? To provide Telos with deep connections in the industry and the savvy expertise required to expedite exchange listings and boost decentralized finance initiatives.
- Investors received 1.7% of the entire TLOS token supply.
- The agreement saw TLOS tokens trading at $0.90, with a $0.10 premium on market price.
- The deal resulted in the sale of eight million TLOS tokens, capping each investor at two million tokens.
Roadmap Ahead
Horn’s optimism is contagious; he believes that these external investments will serve as a catalyst for Telos’s growth without jeopardizing the community’s sustainability. As it stands, the funds will be securely hosted on Telos’s in-house Ethereum Gnosis safe and earmarked for various initiatives:
- Marketing through Telos Foundations
- Development via Telos Core Developers
- Funding for Telos liquidity
DeFi Competition Heating Up
The DeFi sector is becoming increasingly competitive, as illustrated by the recent moves made by other platform contenders like Near Protocol. Just last month, they bagged an impressive $800 million aimed at amplifying their decentralized finance capabilities. Talk about a cash grab!
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