Crypto
Sophon Blockchain raises $60M through a novel 'node sale', selling 121,000 nodes and signaling a shift in crypto fundraising methods.
By Max Weldon
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Sophon, an entertainment-focused blockchain ecosystem, has recently made headlines by raising over $60 million through a node sale, a novel fundraising method gaining traction in the crypto industry. This approach comes as traditional token sales face increased scrutiny from securities regulators. The project, leveraging zkSync's rollup technology on the Ethereum blockchain, sold approximately 121,000 network nodes out of 200,000 offered, amassing around 20,391 ETH ($62.7 million). This method of fundraising, while still in its infancy, is becoming increasingly popular among blockchain projects seeking to decentralize their networks from the outset and offer investors potential token rewards.
The node sale allowed buyers to purchase Ethereum-based ERC-721 tokens, or NFTs, granting them the right to operate nodes on the Sophon network. This operation entitles them to earn 20% of the project's SOPH tokens over the first 36 months post-launch, expected in Q3 of this year. Notably, the project has stated that it doesn't require the full 200,000 nodes for operation, indicating a strategic overture to decentralize and incentivize participation. The sale attracted significant interest, likely including venture capital firms, and follows a $10 million traditional funding round, showcasing robust market confidence despite the project's principals remaining semi-anonymous.
Sophon's fundraising success underscores a strategic pivot in the blockchain industry towards node sales as a viable alternative to traditional token sales. This method not only aids in decentralizing network participation but also educates and involves the community in the project's technological aspects. The Sophon project, with its focus on high throughput applications like artificial intelligence and gaming, represents a significant step forward in leveraging zkSync technology for broader blockchain applications. The involvement of semi-anonymous yet reputable figures in the crypto space, such as Sebastien and Pentoshi, adds an intriguing layer of credibility and mystery to the endeavor.
"The goal is to decentralize network participation, educate more users in their community about their tech, involve more participants than equity and involve retail users at larger skin-in-the-games than public."
"We will use this money to build cool shit, innovate, fund projects and make strategic partnerships – always with the goal of delivering value to our core community... As a crypto-native user myself, I know exactly what it means to risk funds on a new project and the value of transparency from the founder."
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