Plasma Labs Raises $1B From Investors in 30 Minutes

Stablecoins are a central topic in the crypto sector, but so far, Ethereum-based solutions have dominated. Project Plasma aims to change this by bringing stablecoins directly into the Bitcoin ecosystem – and with impressive success.

Stablecoins are a central topic in the crypto sector, but so far, Ethereum-based solutions have dominated. Project Plasma aims to change this by bringing stablecoins directly into the Bitcoin ecosystem – and with impressive success.

Deposit limit increased to $1 billion – and reached immediately

On Thursday, Plasma doubled its deposit limit for investors to $1 billion. Even more remarkable: This new limit was fully utilized within just 30 minutes. Just a few days earlier, the limit had been increased from $50 million to $500 million due to enormous demand – and this limit was also reached in just five minutes.

Responding to community feedback and protecting against bots

The rapid sell-out brought with it a problem: Many real users felt slowed down by bots and “snipers.” Plasma responded to community feedback and increased the limit at short notice to allow as many real users as possible to participate. The announcement was deliberately made with little advance notice to give automated participants fewer opportunities.

How does plasma work?

Plasma uses its own EVM-compatible sidechain to enable native stablecoin transactions on Bitcoin – initially with USDT. What’s special about it: The zero-gas concept eliminates the often high transaction fees associated with Ethereum.

The deposits are not currently a token sale, but rather grant the right to qualify for the later XPL public sale based on the amount deposited. This is expected to comprise $50 million and will result in a token valuation of $500 million (fully diluted).

Interest in Bitcoin-based stablecoins is growing

The demand shows that there is enormous need for stablecoin solutions beyond Ethereum. Stablecoins based on Bitcoin could open up new use cases and user groups – especially given rising fees and congestion on other networks.

Conclusion: Plasma brings a breath of fresh air to the stablecoin ecosystem

The tremendous response to Plasma deposits demonstrates the great interest in innovative Bitcoin-based stablecoin solutions. If you’re interested in new developments in the crypto space, you should keep an eye on Plasma. The combination of a zero-gas environment and fair participation makes the project an exciting pioneer for Bitcoin-based stablecoins.