Huobi Global made an announcement indicating their interest in the popular DeFi protocol Polkadot network. According to the exchange, they want to become part of the significant players that’ll facilitate the network’s growth in the industry.
The exchange used their blog posts to announce a sponsorship program that they have created for Polkadot. They also mentioned that they had created a fund from Innovation Lab worth $5 million in Tether Stablecoin to support all the content creators, developers, ambassadors, and event organizers on the Polkadot ecosystem.
More on Huobi Global and the Polkadot Support
Huobi is an exchange based in Seychelles. According to them, this new sponsorship will allow individuals to support Polkadot projects. Furthermore, they will recommend them for listing in the “Polkadot ecological zone. This is a unique asset listing section of Huobi. It will also facilitate the listing of projects based on Polkadot to offline events.
But to apply in this program, the exchange stipulates that sponsors must be significantly vested in Polkadot’s growth. This implies that every sponsor must contribute 300,000 DOT tokens worth above $1.5 million. According to the exchange, half of the sponsor’s tokens will be locked as asset certificates on Huobi.
Polkadots also made some interesting announcements on Thursday, a day before the Huobi announcement. The network was launching of a finance-alliance that is purely decentralized. They mentioned that the founding members of the alliance include Plasm and Chainlink.
Another announcement that hit the community last week was from Web3 Foundation. They launched a “Thousand Validators Program,” which aims to provide support, education, and funding to increase the network validators for their platform.
Why the sudden investment
These ecological and infrastructure investments followed an argument that Gavin Wood made on Thursday. According to him, Ethereum and Polkadot can co-exist effectively. Wood is a co-founder of Ethereum, and he refuses the argument that only one layer-1 protocol can exist.
But it seems that layer-1 platforms aiming at sapping projects and developers from Ethereum are making false assumptions about the networks’ effects. That’s why the Investment head at Grayscale parent company “Digital Currency Group” has taken to his Twitter account to caution platforms not to dismiss network migration carelessly.
Meanwhile, the recent data shows that the market cap of Polkadot DOT token is currently at $4.7 billion while the Ethereum market cap sits at $67 billion.