PoolTogether, an Ethereum-hosted DeFi application that enables users to gain access to prize-linked savings pools, has raised over $1 million to secure defense funding. The project allows users to deposit crypto tokens and stablecoins, mainly USD Coin (USDC), and earn profits from yielding.
After depositing, users stand a daily chance of getting accessing a prize, and the odds of one winning depends on the amount of their stake. By winning, users can withdraw their entire principal and prize winnings.
The Fundraising Project
After ten days of commencing the funding project of $1.4 million or 769 Ether (ETH), the platform raised the total fund. The CEO and Co-Founder of the project, Leighton Cusack, was astonished at the efforts from the community to raise that amount for the defense funding target.
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This revealed massive support from the PoolTogether crypto token holders’ community. Also, the fundraising is to counter an ongoing lawsuit that many presume to be “no merit.” It’s noteworthy that PoolTogether has another three weeks for the funding campaign to be concluded.
Joseph Kent Battles PoolTogether In A Law Suit
The ongoing lawsuit against PoolTogether is led by Senator Elizabeth Warren’s 2020 United States presidential campaign former tech lead, Joseph Kent. Joseph Kent deposited $12 worth of stablecoins into the network, then took to the law against the protocol, CEO/Co-Founder Leighton Cusack, and numerous project partners. All these occurred in January this year.
According to Kent, in an amended complaint, Kent accused the company of running an illegal lottery in the US, also alleging that the protocol may never provide the expected returns. He argues that the platform is withholding about half of every weekly prize in its reserve. Kent has stated his general dislike for cryptocurrencies and is ready to go full-on against them.
In response, the NFT project is selling three levels of NFTs in its funding campaign known as “PoolyNFT” to battle the current class-action lawsuit. It sells the NFTs at 0.1 ETH, 1 ETH, and 75 ETH, and varying numbers of total minted tokens. In addition, PoolTogether will finally deploy its “hodler utility token” to advance the NFTs.
Interestingly, the protocol’s community responded positively in purchasing the NFTs, hitting about 471 ETH last week. In addition, influencers in the crypto space like Chris Dixon, a significant partner of Andreessen Horowitz, also supported the cause. He bought one of the Pooly Judge NFT for 75 ETH, about $141,000 at the current prices.
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Currently, the protocol has raised about 788.40 ETH, which is about $1.474 million. While the protocol has 16 days left for the fundraising campaign, if it sells all its NFTs, it will generate 1,076 ETH, summing to about $2 million at current prices.
Featured image from Pexels, chart from TradingView.com