Blue Star's SatoshiPay launches Pendulum open-source blockchain
( ), a technology investment company, noted an announcement by SatoshiPay that its Pendulum open-source blockchain has gone live on Polkadot Mainnet. Blue Star owns 27.9% of SatoshiPay.
Pendulum said the Mainnet launch was the first phase of a 3-phase Pendulum launch roadmap. Phase 2 will be a token transfer event allowing for the transfer (but not trading) of tokens. The final phase will be the listing of PEN on the Zenlink automated market maker (AMM), which will present opportunities to earn rewards from providing liquidity.
Pendulum said it is possible PEN will list on a top 10 centralised exchange around the time of Phase 3, and itends to complete the launch roadmap by March 2023.
View from Vox
Blue Star's bet on SatoshiPay is paying off. The kickoff of Pendulum's launch roadmap represents a significant milestone for SatoshiPay, and markets have reacted accordingly, sending shares up as much as 10% in early trading. Blue Star owns 27.9% of SatoshiPay, which in turn has a 5.5% interset of Pendulum's future PEN tokens.
In the past three years, SatoshiPay has changed its business model. It changed its focus away from micropayments, deeming the market opportunity not yet developed enough, and in 2020 announced a refocusing on B2B cross-border transfers through blockchain with the launch of DTransfer. Since then, DTransfer has grown significantly.
To support DTransfer, SatoshiPay is launching Pendulum, connecting DeFi with fiat ecosystems through automated market makers (AMMs). This introduces scalable liquidity pools for fiat currencies, creating yield earning opportunities for fiat token holders.
As of September 2022, SatoshiPay was fully funded for another year. It was profitable in FY21, and expected to remain profitable in FY22. It maintains close relationships with large crypto organisations and has a growing reputation in the industry.
SatoshiPay's current valuation is based on its last external fundraise, which took place in February 2019. Blue Star believes SatoshiPay's current carrying valuation of £4.8m significantly understates its market value. However, based on that valuation and the investment to date of £1.8m, SatoshiPay is showing an unrealised gain for Blue Star of c. £3m.
If the Pendulum network delivers on its objectives, then SatoshiPay should be well-placed within the DeFi market, currently valued at US$55bn. The company is well-positioned to earn fees and accumulate tokens in existing and new DeFi projects.
Follow News & Updates from Blue Star Capital:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.