CasperLabs leaves ETH to raise funds with its Blockchain

CasperLabs, a startup previously recommended by Ethereum Foundation researcher Vlad Zamfir, is now collaborating with the BitMax exchange in Singapore to conduct its token sale in the form of an Exchange Validator Offer (EVO).

"It is a very interesting opportunity to participate with the same conditions generally available only to institutional investors," said Clifford Sarkin, COO of CasperLab.

This fundraising comes after the startup accumulated $ 14.5 million in 2019 from investors like Arrington XRP Capital and Terren Scott Peizer, whom the New York Times nicknamed the Wall Street jack-of-all-trade.

The new CasperLabs project

Initially, the startup focused on Casper protocol experiments. Since then, CEO Mrinal Manohar has said that CasperLabs has moved on to developing a new blockchain inspired by Ethereum's proof of stake plans to allow attendees to deposit their tokens as a means of feeding the network.

Manohar's team of 26 developers and researchers, out of a total of 34 employees, plans to launch the new blockchain's mainnet before 2021. Meanwhile, starting March 30, a new CasperLabs (CLX) token will be sold to retail investors through BitMax, which mainly serves traders in China, Vietnam, South Korea, Russia and India.

The exchange will automatically put CLX into circulation for buyers when the mainnet is launched later this year, after which there will be a 90-day blockade to avoid timely sales.

Therefore, BitMax is committed to managing a full node at the launch of the CasperLabs mainnet to facilitate staking services for CLX and the sale of tokens worth up to $ 3 million, as valued by both participating companies.

Risky sales

CasperLabs, one of many potential smart contract-based Ethereum competitors, is betting on its security configuration in the hope that the network will quickly decentralize. Manohar said the team is in talks with many other exchanges and companies offering staking services.

At present, however, only a few people commit to staking or running nodes, which could invalidate the security model if this is not resolved in the end. Rocktree Capital investor A-series Omer Ozden said his company plans to participate in a private token sale and rely on staking services to use the tokens.

He says that "In China in particular, blockchain is rapidly being adopted by large and medium-sized businesses because of the government's top-down directive." In the meantime, CasperLabs employees will keep approximately 8% of the token offer, with a three-year vesting period.

Manohar said the total token offering yet to be launched will be worth about $ 100 million. When asked how to sell these assets to retail investors in jurisdictions affected by coronavirus, he replied "the terms of sale contain several clauses to protect against risk", such as the prospect of "embedded returns" once the network is started.