ParaSwap’s Governance Token, PSP, Tanks 45% After Team’s ‘Decentralization Maximizing’ Airdrop

Users located in the United States of America or the People’s Republic of China are not permitted to participate in the airdrop or even transact in PSP.

Decentralized exchange (DEX) ParaSwap launched its governance token, dubbed PSP, after repeatedly saying it won’t launch a token.

The newly launched PSP token, with a market cap of just over $105 million, went on to hit $2.10. Since then, the token has lost more than 45% of its value to now trade at $1.15, according to CoinGecko.

The token is currently trading at Uniswap, SushiSwap, Bybit, and Gate.io.

Launched in Sept. 2019, ParaSwap has facilitated about $12 billion in trading volume to date. It has raised $5.7 million in total funding so far, with its investors including Blockchain Capital, CoinGecko, and Aave founder Stani Kulechov.

PSP token is being retroactively airdropped to early users, but the community is not happy about it.

They are unhappy because only about 20,000 accounts, the early users of ParaSwap, will benefit when 1.3 million addresses interacted with the DEX. The ParaSwap team on Twitter said,

“We’re sorry if you weren’t part of this, we had to make a tradeoff between maximizing on decentralization or letting too many Sybil attackers in, we choose the first.”

These 20k accounts will be rewarded with 150 million tokens, representing 7.5% of PSP’s total supply of 2 billion.

The rest of the tokens are distributed among ParaSwap’s core team (17.6%), future team members (5%), seed investors (14%), pre-seed investors and advisors (2.4%), and reserves (10%), with a 51% allocation for the ecosystem.

Moreover, users in China and the United States cannot participate in this airdrop.

“If you are located in, incorporated or otherwise established in, or a resident of the United States of America or People’s Republic of China, you are not permitted to receive a distribution of, or transact in PSP.”

Trader Sisyphus, who received 10.4k PSP tokens for contributing over 9-figure volume to the protocol, called this airdrop impressively executed.

Shresth Agrawal, an algorithm designer at ParaSwap, took to Twitter to share the criteria for being eligible for the airdrop.

To be eligible, one needs to pass all three requirements at the time of the snapshot taken on October 8th and noted:

“transactions with native tokens un/wrapping or involving tokens with traded volume less than $1 million are not considered.”

Each address is assigned a score based on the total transaction count, the total traded volume, the volume of the biggest transaction, and if ParaSwap is used in more than one network, as per which they receive 10.4K, 7.8K, or 5.2K PSP tokens.

Users from all networks ETH, BSC, Polygon, and Avax, partner projects’ including MetaMask, Zapper, Zerion, Debank, Ledger, Cowswap, Instadapp, and Argen, and projects using relayers like Argent and Cowswap were all considered.

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Author: AnTy

Avalanche Blockchain Taps into the $10 Billion Market With An Initial Litigation Offering Token

In collaboration with Republic Advisory services and U.S-based law firm Roche Cyrulnik Freedman LLP, Ava Labs has announced the debut of Initial Litigation offering (ILO) using the Avalanche blockchain. This initiative will tap into the $10 billion litigation financing asset class to open up the market to more retail investors. Notably, the token is the first of its kind to be hosted within a blockchain ecosystem.

The initial ILO to be hosted on Avalanche blockchain will be a litigation financing towards an ongoing matter where the plaintiff Apothio LLC is accusing Kern County, California of unlawfully destroying 500 acres of Hemp; an estimated $1 billion according to market value. Apothio LLC, which specializes in the industrial research, development, and commercialization of cannabidiol oil (CBD), is expected to raise its ILO in Q1 2021.

Decentralized Litigation Funding

Litigation funding, which is also dubbed ‘legal financing,’ is an avenue for plaintiffs to raise resources to sustain their court matters to the end. Before the ILO token launch on Avalanche, this process was generally centralized and mainly attracted institutional players such as LexShares, a leading litigation fund.

Well, the field has now been leveled by Avalanche’s ILO; each token will represent a legal claim to a portion of the potential financial recovery. However, the funders will have to bear the full risk of capital erasure if claims that they choose to back are unsuccessful. Ava Labs’ Kevin Sekniqi commented on the value proposition of decentralizing litigation funding,

“ILOs are a breakthrough for both individuals lacking the resources to seek remediation, and for retail investors who are often locked out of the most highly-performant asset classes.”

“They are fundamentally unique from any other investments, and the creation of the ILO marks the first time blockchain technology will be used to democratize financial products at a multi-billion-dollar scale.”

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Author: Edwin Munyui

Republic To Leverage Algorand’s Chain to Build A Digital Security for Startup Investments

A platform dubbed ‘Republic’ has announced it will soon launch its own digital assets based on Algorand’s blockchain. The former allows investors to acquire a stake in upcoming startups; they are now set to tokenize the underlying and have them regulated as digital securities. Algorand on the other hand, prides itself of being a leading provider of Blockchain 3.0 solutions especially for the scalability trilemma.

Kendrick Nguyen, a co-founder of Republic, highlighted that they are optimistic about this move;

The innovation comes at a time financial market stakeholders are looking for alternatives to boost participation. According to the COO of Algorand, W Sean, the equity markets playing field will be leveled for all sorts of investors based on tokenization;

“Republic’s mechanism of allowing anyone to invest in rigorously vetted startups across an array of industry sectors demonstrates a unique approach of leveling the playing field for entrepreneurs and investors of any size.”

So far, Republic has been successful in creating a market where investors and project owners can interact for progress. The firm has helped raise over $65 million in funds within the course of 2019; this together with other proceeds have been allocated to over 150 entities in the last three years.

Algorand’s Blockchain Solution

This distributed ledger service provider was created to tackle shortcomings by Blockchain 1.0 and 2.0. The platform plans to make its Layer-1 fundamental more scalable for businesses and enterprises. Founded by Silvio Micali, this project seems to attracting more prospects as blockchain enthusiasts embrace third generation innovations.

Looking at these fundamentals, a collaboration with Republic is likely to yield significant adoption for both networks. Republic currently enjoys over 500,000 users and are hopeful of greater figures once they integrate with Algorand’s chain.

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Author: Edwin Munyui