Polkadot and Kusama, two blockchain platforms running almost on the same code base skyrocket in price after traders assessed a capital firm invested around $30 million into their platforms. Master ventures, an Asian blockchain incubator, and capitalist announced that they launched a fund of $30 million to invest in the platform. The company has noted that the fund will support the Parachain bids of tier-1 blockchain projects that want to win the Parachain bids on the Polkadot platform. They also noted that the action would also benefit those who are stepping into the Polkadot and Kusama platforms.
This has encouraged traders to increase their bids on both platforms which made a huge impact on the market values. The DOT/USD exchange rate rose around 28% while KSM had an even better advantage of 39.35%. The uprising in the market values of the platforms encouraged more buyers and traders to invest in them with confidence. Many analysts have also predicted the upside continuation of the values of both the DOT and KSM markets.
The whole working model of these two platforms is largely providing a way for developers to deploy their own blockchains which are known as Parachain. For example, they can bid on a Polkadot Parachain slot to build a decentralized network on top of it. Similar to other blockchains out there, once in existence, it can do wonders. It can even query data from other Parachains on the network. So, Polkadot will act as a network of Parachains to control all these.
Master Venture’s investment would help these developers to finance their tier-1 projects. The venture capital firm has to purchase DOT and KSM tokens for supporting the auction bids of Parachains on the platform. In return, they will lock the tokens for the developers for a certain period of time ranging anywhere from just six months to up to 2 years. This would mean an everlasting increase in the amount of DOT and KSM tokens locked for the Parachain slot durations. So, we will have to see where this takes us and if will result in the success of the Polkadot platform.