Planned Token Sales of Skale Network, Achieved over $5M with the Largest Number of Participants
September 15, 2020 11:07 pm
ConsenSys Codefi achieved its first success with a new way of conducting planned token sales of Skale Network tokens by collecting over $5 million.
According to a report, the Skale token sale in the month of February was the first to be launched on the Activate platform developed by ConsenSys. The platform was announced in October 2019 and its purpose is to bootstrap new projects with an involved community that would perform the functions required of it. Its first launch partner and the inaugural project is Skale Network, a smart contract platform based on Ethereum.
“Activate is a platform that allows anyone to engage and participate in decentralized networks. That’s kind of like a statement as a whole. And the best way to think about it is it equips you with the means to purchase, manage or use your utility tokens through its entire existence.”– Ejaaz Ahamadeen, ConsenSys’ Global Lead of Token Architecture
The tokens can only be “used” after delivery, on the platform via staking, and they cannot be sold until they are used in such manner for at least 60 days. This will develop the concept of Proof-of-Use.
According to ConsenSys, the sale increased over $53 million in purchase intent from 4,533 participants. The final number of participants was nevertheless 3,736 people, for an average contribution of $1,330.
Skale’s CEO Jack O’Holleran previously said that the project does not need the money it collected as it has operated on venture capital so far. Collecting funds was a secondary goal, but the main purpose of the sale is primarily to find engaged users. The token sale was designed to achieve the best token distribution possible and the largest number of participants.
Securing the sale needs a comprehensive Know Your Client check, which should prevent most Sybil attack attempts where one entity could register multiple accounts to bypass restrictions.
Skale Network is an Ethereum (ETH) sidechain, that strives to create a high-performance blockchain environment suitable to substitute cloud hosting providers like Amazon Web Services.
Above 50 Decentralized applications are building on the sidechain. The second phase of the project is mainnet, which is expected to start on October 1. The SKL tokens users will be able to transfer them to 21 validators, who will run the Skale nodes and will also earn staking rewards.