The Ethereum scalability project SKALE received a massive response as it raised $5 million by selling 167 million SKL tokens using the ConsenSys’s Codefi tool Activate.
On Monday, September 14, Ethereum scaling platform SKALE announced the completion of $5 Million worth of token sale over ConsenSys‘ anti-speculation platform Activate. SKALE had received massive interest from the global crypto community tying to get their hands on the tokens.
Earlier, around 13,000 investors had shown interest in SKALE with an estimated capital pull of $57 million. However, only 4300 investors proceeded with the KYC check contributing around $43 million. But SKALE had to limit its fundraising to $5 million considering the regulatory constraints of Leichestein. the SKALE platform sold nearly 167 million SKL tokens in this public sale.
The distribution of SKL tokens will happen on September 24 next week. Post the distribution, the buyers can stake their SKL tokens on the ConsenSys Codefi’s Activate platform and generate staking rewards in return. SKALE and the Activate platform has set the minimum staking period of 60-days before the stakers can unlock them. The press release read:
“Rather than let a handful of whales scoop up all the tokens and potentially dump them later, or dominate the network rewards. The sale aimed to have the most number of individual participants possible and make the SKALE Network a self-sustaining endeavor.”
Choosing ConsenSys’ Activate for Stability
Since it is an Ethereum scaling project, SKALE already caters to Ethereum 2.0‘s Proof-of-Scale (PoS) consensus model. It promises scalability with thousands of transactions per second at a low cost. SKALE CEO Jack O’Holleran said that nearly 50 projects are building and testing currently on SKALE. A third of them are gaming projects, the remaining third is decentralized finance (DeFi) projects, and the rest are all from mixed groups.
Activate is ConsenSys’ Codefi tool that provides a launchpad for new decentralized projects and networks. The Activate platform defines all the standards for purchase, distribution and use of the utility tokens. The platform uses Proof-of-Use with an aim to create a sustainable long-term community.
The SKALE CEO said that the reason behind choosing ConsenSys’ Activate was to opt for stability instead of speculation. O’Holleran further added:
“We strongly believe that the programmatic requirement that token purchasers ‘use’ their token through staking creates a stronger, secure network that has long term stability. We changed the strategy to focus on fairness and equal distribution”.
The SKALE project has been very successful in attracting investors and ventures capital companies. They have been consistently raising capital over the last year and so.