Plasma, a prominent stablecoin firm, recently announced a significant increase in its deposit cap to $1 billion. This remarkable development was met with overwhelming response as the cap was filled in a mere half-hour following its opening.
The company explained in a social media post that the initiative was aimed at providing another chance for community members to be part of the XPL token sales. Earlier in the week, Plasma kick-started its maiden round of stablecoin deposits, setting a total limit of $500 million with an individual cap of $50 million. By depositing stablecoins into the vault, users can secure the right to buy Plasma’s XPL token.
After reaching the initial cap of $500 million in less than an hour, it was clear that demand was high. The cap was subsequently increased to $1 billion and filled in just 30 minutes. Plasma clarified that this $1 billion stablecoin deposit should not be misconstrued as a $1 billion raise. It went on to add that the public sale of XPL tokens has not yet started, and that tokens worth $50 million will be sold at a fully diluted valuation of $500 million.
The company stated, “To clarify: this is not a $1 billion raise. Deposits are not the sale itself, and the XPL public sale hasn’t started yet. All funds will be bridged to Plasma mainnet beta and remain fully owned by depositors. Depositors earn the right to participate in the sale based on their final units at the time of the lock-up. The public sale terms remain unchanged: $50 million will be sold at a $500 million fully diluted valuation.”
Plasma also addressed concerns from community members who found it difficult to join, indicating that the announcement was made on short notice to minimize bot setups and allow more room for genuine participants.
According to data from Arkham, Plasma’s vault currently holds $558 million worth of USDC, $396 million worth of USDT, $16.6 million in USDS and around $3.4 million in Dai.
High-profile crypto trader Jordan Fish, aka Cobie, launched the angel investing platform Echo in March with the aim of consolidating fragmented angel investments in crypto startups. In May, Echo revealed its initial coin offering (ICO) subsidiary, Sonar, with Plasma as Sonar’s inaugural project.
Plasma, a Bitcoin sidechain built specifically to eliminate transaction fees in Tether’s USDT, secured $3.5 million in a funding round led by Bitfinex last October and raised an additional $20 million in Series A funding in February. The stablecoin arena has witnessed significant activities lately, with major U.S. banks and tech giants exploring stablecoin projects, and USDC issuer Circle going public.
