The Cosmos Story: How to Turn $17M Into $104M
This article comes fromfinance.yahoo, original author: Leigh Cuen
Odaily Translator |
This article comes from
, original author: Leigh Cuen
Odaily Translator |
In April 2017, The Interchain Foundation (ICF) successfully raised $17 million in funding, aiming to promote the development of the Cosmos network and facilitate dialogue between different blockchains.
After selling ATOM tokens, The Interchain Foundation began funding a series of cross-chain development projects, such as Agoric Systems Operating Company (ICF has invested in it in the form of traditional equity) and Tendermint, which they hope to promote block Inter-chain communication (IBC) protocols are evolving rapidly.
In fact, The Interchain Foundation's goal is very clear, they are to prepare for the future of cross-chain, and for cross-chain technology, Agoric CEO Dean Tribble explained vividly:
“I can sign a contract on one chain and sell the asset on another chain, or sell it to some other private consortium in some stack on another platform.”
However, today, the cross-chain technology is still immature, but the sale of ATOM tokens is in full swing, and investors have also received good returns. Ethan "Bucky" Buchman, technical director of The Interchain Foundation, revealed:
The case of The Interchain Foundation seems to illustrate a little-known fact of the ICO boom of 2017, namely: blockchain companies with conservative money management strategies compared to blockchain companies that seek rapid growth through marketing The company's performance and sustainability will be better.
Jae Kwon, the founder of Tendermint and the current chairman of The Interchain Foundation, revealed that ATOM tokens were actually issued after ICO financing, so they are not a typical initial token offering project. Although they later issued a large number of documents warning ICO participants that they could not guarantee the receipt of tokens as scheduled, in the end, their tokens were distributed to project fundraisers as planned.
Arianne Flemming, another person in charge of The Interchain Foundation, revealed that as of now, they still hold more than 1,400 BTC, 50,000 ETH and 20,000 ATOM tokens. At current market prices, the total value exceeds $104 million. Arianne Flemming bluntly stated that even though they have invested $25 million in more than 50 blockchain projects as a non-profit organization, the funds in their "pockets" are still sufficient.
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In order to develop firm governance, the foundation must first be laid
Agoric CEO Dean Tribble, who previously worked for Microsoft, believes that if mainstream developers can more easily use JavaScript to write smart contracts, it will promote the popularization and application of blockchain technology. If Cosmos really wants to become a "highway" connecting different proof-of-stake blockchains, it must deploy a common development language, which may require them to use Wrapped Token developed by Cross-Chain Working Group to support Bitcoin-based placeholders. ).
According to Dean Tribble and Ethan "Bucky" Buchman, The Interchain Foundation's ATOM token is not capital, but a token used to participate in the Cosmos system. Ethan "Bucky" Buchman further explained that ATOM is just a participation tool to incentivize the governance of the Cosmos network. The Cosmos network hopes to achieve cross-chain interoperability in 2020. It is currently in the testing phase, but the only function that the network can complete now is Distribute ATOM tokens to participants and trade within their network.
According to Zaki Manian, director of research at Tendermint, Tendermint currently holds about 8% of ATOM tokens, but they are not under pressure from Cosmos, nor are they forced to use a specific software development client. Zaki Manian says:
Zaki Manian stated that if the Cosmos network does not use their software, they may seek other software development contracts in the near future. He added:
"I think there are many viable businesses on the Cosmos network, but Tendermint can't support all of them. I think there are some shortcomings in the Zcash solution, they combine the Electric Coin Company brand with open source technology too closely, you will be in the protocol Seeing a lot of stuff associated with the Zcash brand. So for other companies, it doesn’t give them an opportunity to have that.”
The “laissez-faire” approach taken by the Cosmos network appears to be working, with nearly 30 network validators currently voting on network upgrades on a regular basis, a much higher percentage than the Maker Foundation’s governance system, which has a similar number of votes as Cosmos, but its contract There are more than twice as many employees, and even more regular users.
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Instead of spending money on marketing, spend it on project investment
In addition to performing well in fund management, The Interchain Foundation is also doing very well in investment transactions.
Most notably, instead of spending money on marketing, The Interchain Foundation chose to invest in crypto projects. At present, ATOM tokens have been listed on mainstream cryptocurrency exchanges such as Binance, but both parties have denied “spending money” to list the tokens. On the contrary, Binance has applied to become a validator of the network in order to show its support for Cosmos.
Basically, through the "layout" of The Interchain Foundation, the connection between many like-minded companies in the cross-chain field has been further consolidated, and many well-known experts in the industry who have contributed to Cosmos have also been encouraged. Additionally, part of The Interchain Foundation’s funding was spent on hackathon prize money and legal fees.
Ethan "Bucky" Buchman, technical director of The Interchain Foundation, said:
“We have received information from regulators in several different jurisdictions, we have received requests for disclosure and are now actively responding to regulators. So far we seem to be getting along pretty well with regulation.”
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What to expect in the future?
In fact, The Interchain Foundation has cooperated with many cross-chain development projects for many years.
Regardless of whether Cosmos can be applied to real-world use cases at the earliest, the network highlights the advantages of decoupling business models from specific cryptocurrencies.
Founded in 2014, Tendermint is an early-established cross-chain technology development company, and received $9 million in venture capital in 2019. The company's survival does not depend on the price of ATOM tokens, nor does The Interchain Foundation rely on ATOM tokens as a long-term source of income.
