Digital asset investment company KR1 PLC (AQSE:KR1) has put millions of dollars worth of Polkadot cryptocurrency into a cross-chain liquidity protocol following an auction.
KR1 contributed 350,000 DOT – equivalent to £4.43mln, according to Coinbase - to HyrdaDX’s (HDX) crowdloan campaign, which will be time-locked on the Polkadot blockchain for 96 weeks.
KR1 said this method of token distribution involved no direct investment of capital, but indirect investment of the opportunity costs of being unable to access the DOT funds.
The DOT currency will be returned to KR1 at the end of the period, in addition to an unspecified number of HDX tokens.
Coinbase data shows DOT’s price was £12.42 as of 12am on 21 February, compared to a high of £40.71 on 4 November 2021.
The company will also receive 45mln HDX tokens and an undetermined amount of Basilisk tokens following 2020 backing of Hyrdra DX’s seed funding round and Basilisk’s September crowdloan campaign.
“HydraDX winning a Polkadot parachain slot is the next big step for the project and a huge endorsement by the community of the protocol's objective to bring all liquidity together in an ‘ocean of liquidity’”, said Keld van Schreven, managing director and co-founder of KR1.
“We see HydraDX as the endgame of liquidity in a cross-chain world and we have a high conviction rate in the team's ability to achieve this goal.”