To Dfinity and Beyond! The ICO Which Values Itself at $3.5 Billion

To Dfinity and Beyond! The ICO Which Values Itself at $3.5 Billion

On Tuesday, ICODrops tweeted a table that it claims represents the Dfinity project’s token distribution and funding target.

According to the table, Dfinity will be selling ten percent of its tokens to the public for a staggering $350 million, giving the project a nominal market value of $3.5 billion.

It is also believed that 48.9 percent of the token supply will be held as a ‘company reserve.’

                     Source: ICODrops

The news created a storm on Twitter and Reddit. Some community members were furious that the team appeared to be keeping almost 50 percent of the tokens for themselves, and that the public would effectively be paying over 200 times what seed stage investors had originally paid in October.

Dfinity responded on its Telegram channel with a statement refuting the accusations. They stated they have not finalised the details of their ICO, and went on to explain at length that the 50 percent company reserve would not be held by the team.

However, they did not refute the claim that 10 percent of the token supply would be offered to the public for $350 million.

Dfinity, which calls itself the ‘NASA for decentralization’, is building a decentralised cloud computing network. While some analysts see it as a competitor to Ethereum, the team itself says it will complement and enhance the Ethereum network.

The project initially raised $4.6 million in 2017 and in February announced that it had raised a further $61 million from venture capital investors, including Polychain Capital. While the company has said it will conduct a ‘main’ funding round, to date it hasn’t published details.

Until last week the project had been building a strong following in the crypto community. However, if the ICO is indeed seeking $350 million for just 10 percent of the token supply, investors are likely to be sceptical.

As one analyst pointed out, Ethereum only needed to raise $18 million to build its network. And if Dfinity does need $350 million in capital to run with its project, questions will persist over why this amount corresponds to ten percent of its token release.