Two announcements from Huobi Global on Friday indicate that the cryptocurrency exchange is in the process of becoming a major player in the growth of the Polkadot network.
In a few blog posts, the Seychelles-based exchange announced a Polkadot sponsorship program, as well as a $ 5 million Tether stablecoin fund from the Huobi Innovation Lab to support “developers, event organizers, content creators and ambassadors” across Polkadot. ecosystem. .
The sponsorship program allows individuals to recommend Polkadot projects for inclusion in the “Polkadot Ecological Zone”, a dedicated asset determination section of the Huobi Exchange. Sponsors are also reportedly invited to Huobi’s annual conference, as well as other offline events.
Sponsors must have a significant vested interest in Polkadot’s success in order to apply. Minimum requirements include 300,000 DOT tokens (over $ 1.5 million), half of which must be locked with Huobi as asset certificates.
Huobi’s investments follow one few similar announcements from Polkadot on Thursday. The network launched a decentralized, finance-focused alliance whose founding members are oracle provider Chainlink and layer-two network Plasm.
In addition, the Web3 Foundation announced the launch of the Thousand Validators Program, which will provide education, support, and funding to increase the number of network validators for the platform.
The infrastructure and ecological investments come after Polkadot maker Gavin Wood argued Thursday that Polkadot and Ethereum can co-exist. In comments made at the Polkadot Decoded summit, the programmer, who also co-founded Ethereum, rejected the idea that there is only enough space for one layer 1 protocol.
“When Ethereum becomes a chain that can be bridged […] I think there is a very good chance that Polkadot and Ethereum will happily co-exist, ”said Wood.
However, layer 1 platforms looking for Ethereum developers and projects can make some false assumptions about network effects.
In comments today on Twitter, Larry Sukernik, the head of investments at Grayscale parent company Digital Currency Group, warned platforms such as Polkadot not to take developer migration for granted:
ETH killers often say there are millions of developers who are not ideological about which blockchain to build. That is their target market.
What they are missing is that this target market is likely to look to existing blockchain developers for help with blockchain selection.
– Larry Sukernik (@lsukernik) December 5, 2020
According to Coingecko, Polkadot’s DOT token currently has a market cap of $ 4.7 billion, compared to a $ 67 billion figure for Ethereum.