- The
Telos blockchain has just raised $ 8 million for its very first group of reputable investors. - The funding amount will be used to hedge against a possible “extended bear market†next year.
- Douglas Horn, the chief architect of Telos, told Business Insider they have steered clear of big name investors because they don’t want to create big whales that could influence the price of the TLOS token. .
The Telos blockchain platform, based on the Ethereum network, has just raised $ 8 million. Although the funds are not breaking any records, this is the first time that Telos has relied on renowned investors to bring in new capital – led by Code to Inspire co-founder,
And the shift in philosophy comes as the company braces for a possible bear market next year. “I have no idea what will happen next year, but all bull cycles end”
Simply put, just in case a “crypto winter†hits next year, Telos will still have the cash it needs to keep growing without having to sell any of its TLOS tokens.
No big “whales” to play with the prices of TLOS tokens
So far, the Telos blockchain has been funded entirely by bootstrapping without large investors. As a result, there are no big “whales” that cause the market to move with one click. It helps tokenomics to stay stable.
“In the early stages of the project, we didn’t want to cut a lot of the token supply to give it to a bunch of VCs or whatever. It’s the kind of thing that puts tokenomics off balance forever. “
Douglas Horn, chief architect of Telos, told Business Insider India
According to Horn, if Telos had made this type of investment earlier, the project would have had to sell 30-40% of its tokens to venture capitalists. In the meantime, the blockchain was able to keep the overall sale at 2% to 3% of the chain.
What is Telos going to use the money for?
As with most financings, the new capital will be used for three purposes: development, marketing and liquidity. And, a big part of achieving those goals is having the right people to lead the change.
“We have grown our development team by approximately 300%. We are now looking to continue these expansions and recruit top level developers and marketers, â€Horn said.
The goal of attracting reputable investors isn’t just about the money – it’s also about the skills, wisdom and connections they offer, which can go a long way in finding the right one. talent.
“We’ve been moving very quickly lately, going from a $ 10 million project to a $ 100 million project and soon to a $ 1 billion project – maybe by the end of this year. the year. Next year we should probably hit $ 10 billion, then $ 100 billion based on that model and the valuations of comparable chains like Solana and Cardano, â€Horn said.
SEE ALSO:
Choosing the best cryptocurrency exchange – your options and how to choose between them
Illegal cryptocurrency mining remains rampant as miners seek to maximize profits with cheap electricity
Another bizarre CryptoPunks sale in the past seven days – this time for an unreasonably cheap price
