Plasma, a Bitcoin-backed stablecoin network, successfully attracted $500 million in stablecoin deposits during the initial phase of its token sale, highlighting remarkable investor enthusiasm. In a notable instance, one trader spent over $100,000 in Ethereum gas fees to prioritize their $10 million USDC deposit, underscoring intense demand.
The public sale involves auctioning 10% of the total XPL token supply via deposits into an Ethereum-based vault, facilitated through the Sonar token sale platform. Despite $500 million raised in deposits, only $50 million worth of XPL tokens will be sold, with participants earning yield on deposits and the option to withdraw funds anytime.
This event marks the resurgence of the ICO trend reminiscent of 2017. The sale was oversubscribed tenfold and saw participation from over 1,100 wallets, including notable entities such as Founders Fund and Bitfinex. The use of a time-weighted vault deposit mechanism represents an innovative approach to token sales.
The rapid fund-raising also outlines the increasing centrality of stablecoins like USDC and USDT in the cryptocurrency ecosystem, especially in DeFi, where over $2.6 billion is locked in smart contracts. The renewed ICO enthusiasm is partly fueled by retail investors seeking significant upside, a dynamic previously seen during the 2017 ICO boom and the NFT surge in 2021-22.
However, concerns exist about concentration risk, with the top 10 participants accounting for 40% of the deposited supply, highlighting whale dominance. The exact timing of the token sale awaits confirmation, and the impact of this event may extend market-wide if other projects pursue similar ICO models.