Polkadot Tokens Sold on Secondary Markets at Discounted Rates: Report

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Tokens for the Polkadot protocol are being provided on secondary markets at closely discounted charges, The Block reported on May 23.

A lot of main crypto funds and buyers informed the web site that over-the-counter (OTC) desks had given them the possibility to purchase massive volumes of DOT tokens.

Polkadot, a blockchain interoperability protocol created by Ethereum co-founder Gavin Wood, bought its official presale tokens at $30. The personal sale value is $120 — and it’s believed a minimum of one secondary deal has gone by means of, with the customer receiving a 50% low cost.

Such offers are usually not with out dangers, The Block notes. As properly as bringing Polkadot’s potential valuation of $1.2 billion into query, sellers may very well be violating agreements they’ve signed by orchestrating third-party gross sales. Additionally, as consumers are buying tokens they are going to solely obtain sooner or later, there’s a hazard that untrustworthy sellers may maintain on to the tokens for themselves.

Investors informed The Block that they might nonetheless have an interest within the alternative, offered that the tokens had been being bought at a closely discounted price. Others mentioned they’d aborted deliberate purchases as a result of the sellers regarded untrustworthy, or as a result of they’d failed to finish due diligence checks.

Nevin Freeman’s stablecoin firm Reserve was focused by scammers who created a pretend OTC marketplace for its tokens. He informed the web site:

“I need individuals to know concerning the risks of a few of these second-hand token gross sales. I need to warn them.”

The Polkadot protocol is a type of “para chain” that hyperlinks several types of blockchain collectively.





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