The $8 million funding was led by John Lilic, a Polygon investor and ConsenSys for blockchain platform Telos. This funding was obtained right before Telos’ Ethereum Virtual machine (EVM) platform launched. It ends the company’s long streak of bootstrapped projects.
Telos plans to use the newly secured capital for platform development and marketing, as well as improving liquidity. According to Douglas Horn, chief architect at Telos:
“While this [bootstrapping] protected our identity as an egalitarian and self-governing community it also left us open to the risk of continuing to fund our explosive growth via extended bear markets.”
Horn spoke to Cointelegraph to discuss the move away from token sales. Horn stated that Telos seeks to eliminate centralized ownership which could lead to whale trading as the network matures. He said that Telos avoids the most rigorous regulatory scrutiny for crypto by having a fair community launch, and a truly decentralized operation.
Five prominent crypto investors supported Telos’ $8 million funding. They intend to provide Telos with deep industry connections and deal-making skills to accelerate exchange listing and decentralized finance initiatives.
The deal included 1.7% of total TLOS token supply.
“Investors entered into the agreement through a community liaison, when $TLOS tokens traded at $0.90 USD. They also agreed to pay $0.10 USD premium on market price.”
The total sale of 8 million TLOS tokens was completed. None of the investors held more than 2 million tokens. Horn also believes that external investments can help Telos grow, without “sacrificing token support” or community sustainability.
According to the company the funds are stored on the internal network’s Ethereum Gnosis secure, which will be used to redirect to marketing via Telos Foundations and development via Telos Core Developers.
Related: Near launches $800M DeFi fund to compete with Ethereum competitors
Near Protocol, a smart contract platform, secured $800 million funding in October to improve its decentralized finance capabilities.
Cointelegraph reported that Near received funding from a $350 million grants program. This incentivizes developers and encourages them to develop applications on the blockchain. A total of $250 million has been given to existing ecosystem developers, while $100 million was set aside for startups grants. The $100 million remaining will go to regional initiatives in Asia, Europe, and the United States.