KR1 generating revenue from the Polkadot Blockchain Ecosystem
(KR1:AQSE ) has participated in, generated staking revenue from, and realised fiat currency revenue from key projects across the Polkadot blockchain ecosystem.
Plasm Network
Plasm ("Plasm" or "PLM") is a highly scalable decentralised application platform, launching on the Polkadot blockchain, that allows developers to build secure and scalable applications on Plasm's 'Layer 2' solution for fast and high capacity transactions.
Firstly, KR1 recently announced its follow-on participation in the second Plasm token distribution event, termed a 'lockdrop', following its initial participation in Plasm’s first ‘lockdrop’.
KR1 time-locked a total of 1,000 Ether ("ETH") via a smart contract with a duration of 1,000 days, in return for 248m PLM tokens.
Across both token distribution events, KR1 holds a total of 314m PLM.
KR1 said it is planning to use the acquired PLM tokens in staking activities in the future and expects to regain access to the time-locked ETH in three separate tranches: 500 ETH unlocking in 1Q21 (from the first lockdrop), 232 ETH unlocking in 4Q22 (from the first lockdrop) and 1,000 ETH unlocking in 2Q23 (i.e. the second lockdrop).
ChainX
ChainX ("PCX") is a blockchain providing technical infrastructure for multiple digital assets, such as Bitcoin ("BTC") or Ethereum ("ETH"), to be migrated into the Polkadot ecosystem. The ChainX network launched in July 2019 and, since then, the Company's staking activities have been generating revenue on an ongoing basis in ChainX's native PCX digital asset.
To date, KR1 has generated a total of 30,072 PCX from staking activities, which are currently being 'compounded' to strengthen its staking activities going forward.
KR1's total holding of ChainX tokens is 30,072.02 PCX, which are being actively staked.
Edgeware
Edgeware blockchain platform was launched as a decentralised 'Proof-of-Stake' network in February 2020 and, since then, the Company's staking activities have been generating revenue on an ongoing basis in Edgeware's native EDG digital asset. Edgeware ("EDG") was implemented on the Polkadot network as a ‘parachain’ to allow participants to vote, delegate and fund each other to upgrade the network.
To date, KR1 has generated a total of 439,431.72 EDG from staking activities, which again, are being 'compounded' to strengthen the Company's staking activities going forward.
KR1's total holding of tokens is 4,254,318.32 EDG, which are being actively staked.
Phala Network
The Phala Network ("Phala" or "PHA") is a confidential data exchange protocol built on Polkadot that guarantees reliable execution and keeps smart contract data secret.
KR1 participated in Phala's token distribution event, termed a 'stakedrop', generating 1.2m PHA tokens at zero cost in line with staking activities on the Kusama network.
KR1 said it has now realised the accrued fiat currency revenue from the 'stakedrop', selling 1.2m PHA at an average price of US $0.10 per PHA token for a total of US$123,638.
Shares in KR1 have increased by over 120% since August 2020 to close at 15.75p on Monday afternoon trading.
"The new decentralised revolution was started by Bitcoin and Ethereum and is now being pushed forward by Polkadot,” said Keld van Schreven, MD and Co-Founder of KR1.
He said Polkadot, which holds these “nascent, high-quality projects” are often using the Ethereum lessons to create even better decentralised applications and experiences for users.
“What is compelling about these projects is that we have generated all the assets mentioned above directly from assets that were already held on the Company's balance sheet.
As KR1's investment portfolio scales in size, so does our ability to utilize assets strategically, maximising long-term shareholder value while limiting downside risk,” he commented.
3 Reasons to Follow KR1
KR1 is Europe's leading digital asset investment firm supporting early stage blockchain and DeFi projects. It is a first investor in many key blockchain and DeFi projects that will power the decentralised platforms and protocols that form the emerging Web3 infrastructure.
Leading Edge IP
KR1 unveiled back in August 2020 that it had started generating material revenue from staking activities on the Polkadot network, its largest investment and portfolio holding to date.
The company has been staking activities on Polkadot to generate revenue on an ongoing basis following its migration to a ‘Proof-of-Stake’ blockchain network back in June 2020.
To date, KR1 holds a total of Polkadot 3,558,490.89 DOT tokens, post-re-denomination. This differs from its original DOT allocation as a result of the bonus pool of unlisted digital tokens allocated pursuant to KR1’s 2017 bonus scheme, which included Polkadot as an asset.
Generating Material Revenue
George McDonaugh, Managing Director and KR1’s Co-founder, described the launch of Polkadot as “a momentous event” in the group’s history and one that shareholders have been waiting for since KR1 backed the project in an early funding round in 2017.
Commenting on the group’s largest investment activities, McDonaugh told investors: “We are pleased to have locked in some profit at good prices and we're delighted that Polkadot is further expanding the Company's staking activities as a yield-bearing asset."
Positive Outlook
McDonaugh said KR1 is seeing huge interest flowing into numerous new projects building on Polkadot, many of which it has already supported, or currently in active discussions.
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