Two announcements from Huobi Global on Friday suggest that cryptocurrency exchanges should play a key role in the growth of the Polkadot network.
In a few blog posts, The Seychelles-based exchange announced a polkadot sponsorship program as well as a $ 5 million tether stablecoin fund from the Huobi Innovation Lab to support “developers, promoters, content creators and ambassadors” around the world . Polkadot ecosystem.
The sponsorship program enables people to recommend Polkadot projects for inclusion in the “Polkadot Low Emission Zone,” a special section dedicated to listing assets on the Huobi Stock Exchange. Sponsors would also be invited to Huobi’s annual conference as well as other offline events.
Sponsors must have a significant interest in Polkadot’s success in order to apply. The minimum requirements include 300,000 DOT tokens (over USD 1.5 million), half of which must be blocked with Huobi as an asset certificate.
Huobi’s investments follow several similar announcements from Polkadot on Thursday. The network started a financially oriented, decentralized alliance, the founding members of which were the Oracle provider Chainlink and the Layer 2 network Plasm.
In addition, the Web3 Foundation announced the launch of the Thousand Validators Program, which will provide training, support and funding to increase the number of network validators for the platform.
Green infrastructure and investment come after Polkadot creator Gavin Wood argued Thursday that Polkadot and Ethereum could coexist. In comments made at the Polkadot Decoded summit, the programmer, who also co-founded Ethereum, dismissed the idea that there is only enough space for a Layer 1 protocol.
“If Ethereum is a chain that can be bridged somewhat […] I think there is a very good chance that Polkadot and Ethereum will live happily together, “said Wood.
But still, Layer 1 platforms that Ethereum developers and projects want to exhaust could make incorrect assumptions about network effects.
In today’s comments on Twitter, Larry Sukernik, chief investment officer at Grayscale Digital Currency Group’s parent company, warned platforms like Polkadot not to take developer migration for granted:
ETH killers often say that there are millions of developers who don’t know which blockchain to build on. That is their target market.
What they lack is that this target market is likely to scour existing blockchain developers for help with blockchain selection.
– Larry Sukernik (@lsukernik) 5th December 2020
ETH killers often say that there are millions of developers out there who are not ideological about which blockchain to build on. This is your target market.
What they lack is that this target market is likely to seek help from existing blockchain developers with blockchain selection.
According to Coingecko, Polkadot’s DOT token currently has a market cap of $ 4.7 billion, compared to $ 67 billion for Ethereum.