Polymarket Seeks $50M + Token Launch?
Celestia’s $100M Deal | EIGEN Transfer Restrictions Ending
Marco Manoppo & Karon Pangestu
September 25, 2024
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Good Morning.
We’re still recovering from the craziness that is Token 2049 & Solana Breakpoint.
Anyway, the market bounced thanks to macro forces but we still need a significant influx of new capital coming in — either in the form of retail rejuvenation or more credits on the institutional side, perhaps the BlackRock options will help.
In Today's Email:
What Matters: Polymarket seeks $50M đź‘€
Case Study: Celestia’s $100M deal 🔍️
Governance & Features: EIGEN transfer restrictions🔓
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Narratives: Some blue chip altcoin names are experiencing a decent bounce from the bottom, but we’re not above the large downside range yet.
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WHAT MATTERS
Polymarket Eyes $50M+ and a Token Launch
State of play: Polymarket seeks $50M in additional funding — investors in the round will receive token warrants, signaling that the prediction market is considering a token launch — according to sources cited by The Information.
There’s no confirmed token launch plan. If launched, these tokens could help users validate real-world event outcomes.
In May, Polymarket raised $45M in a Series B led by Peter Thiel’s Founders Fund, with support from Vitalik Buterin and Kevin Hartz.
The platform, founded in 2020, has attracted nearly $1B in wagers on events like the 2024 US presidential election.
What’s next: A decision on the token launch is still pending, but the potential move would align with the platform’s goal to expand its user base and enhance functionality.
Why it matters: Polymarket is already a key player, and a token launch could further boost its growth and influence.
Our take: If Polymarket doesn’t launch a token post-election, it might become another OpenSea.
For builders and investors: Token is your superpower to align incentives, hire better human capital, and build a stronger community. Do NOT shy away from it.
CASE STUDY
Celestia’s $100M Fundraising Drama
This was an OTC deal done at a $3.5 billion valuation directly with the foundation a few months ago, and I think it also unlocks in October
— Sisyphus (@0xSisyphus)
11:15 PM • Sep 23, 2024
The Celestia Foundation has raised $100M in a funding round led by Bain Capital Crypto with participation from Syncracy Capital, 1kx, Robot Ventures, and Placeholder, bringing its total funding to $155M.
According to @0xSisyphus, the recent $100M raise was part of an OTC deal valuing the project at $3.5B.
This deal was conducted a few months ago and is expected to unlock in October.
According to Sisyphus, investors would break even if they sell at full unlock for $7.5, a target some initially doubted would be met by October.
82.45% of the circulating supply of $TIA unlocks on October 30th.
Ericonomic criticizes Celestia for selling locked tokens to VCs at higher prices months ago, then delaying the announcement until just before the token unlock to mislead the public into thinking it was recent.
He argues this creates a false perception of bullish sentiment, causing people to buy in, potentially only for VCs and the team to dump tokens in October.
He also highlights the lack of transparency in OTC sales and calls for public disclosure of deal terms to prevent such manipulative practices.
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INSIGHTS
MSTR vs IBIT
MSTR vs IBIT YTD: (Source: TradingView)
MicroStrategy has significantly outperformed BlackRock's Bitcoin Trust (IBIT) year-to-date, with a stock increase of 119% compared to IBIT's 35% rise, reflecting a more than threefold advantage.
Key factors for MicroStrategy's success include:
Unlike IBIT, which has a 0.25% expense ratio, MicroStrategy does not charge fees to shareholders, enhancing cost efficiency.
MicroStrategy generates revenue through its analytics business, providing financial stability beyond its Bitcoin holdings.
MicroStrategy can raise capital through debt and equity offerings, such as a recent convertible note offering, to acquire more bitcoin, a capability IBIT lacks.
MicroStrategy has maintained higher visibility in search trends compared to IBIT.
However, the gap is narrowing with the recent approval of options trading for IBIT.
FEATURES & GOVERNANCE UPDATE
EigenLayer to Lift EIGEN Transfer Restrictions
EigenLayer is set to lift transfer restrictions on its native EIGEN token by September 30, allowing stakeholders to trade and transfer their tokens, including airdropped rewards.
Those holding staked tokens will need to observe a 7-day unstaking period before accessing their tokens.
This follows the second "stakedrop" season, which distributed 86M EIGEN tokens to active participants between March and August 2024.
EIGEN is expected to be utilized within a crypto-economic security system called inter-subjective forking.
Pre-market trading platforms like Hyperliquid are valuing EIGEN derivatives at $3.4, with a fully diluted valuation of $5.4B.
Despite an initial surge of deposits, the total value locked in EigenLayer has dropped from $20B in June to $12B, indicating recent outflows.
Other notable feature updates:
QUICK BITES
Celestia Foundation raises $100M.
Caroline Ellison sentenced to two years.
Polymarket US election bet crosses the $1B mark.
Hong Kong starts the second phase of the e-HKD pilot.
Polymarket considers a token launch amidst fundraising.
Benchmark says MicroStrategy could soon generate yield.
US spot Ethereum ETFs see largest outflows since late July.
SEC settles charges against TrueCoin LLC and TrustToken Inc.
Circle unveils a new compliance tool for programmable wallets.
EigenLayer expects token transfer restrictions to end on Sept 30.
BNY Mellon moves closer to offering crypto ETF custody services.
Gary Gensler grilled over crypto regulation in a congressional hearing.
NOTEWORTHY READS & MEME
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