Kusama-based Project Karura Has Raised Funds Worth $100M For Upcoming Parachain Auction

After successfully raising $100 million, Karura is in pole position as the coming parachain auction closes in.

The crows funding allowed the network to raise close to 200k Kausama coins worth more than $100 million. The plan for the funds is to be utilized in the coming auction. The funding additionally allowed Kusama’s price to increase sharply.

$100 million bid on Parachain Auction by Karura

The press released by the team states that 200k Kusama coins loaned to the team were contributed by 8500+ contributors the majority of them used Karura’s portal to contribute.

The company is optimistic about starting a parachain that will provide an extensive suite of Decentralized finance functionalities on Kusama, such as a stablecoin backed by different cross-chain assets and cross-chain automatic market maker. Acala and Karura are supported by many large ventures in the digital asset market, like Coinbase Ventures.

Kusama and Polkadot were, manufactured to join one hundred use-case-specific chains connected to a centralized Relay Chain. But, there is a limited amount of Parachains; hence the network requires to secure slots by auctions.

The auction will start on the 15th of June, with Kusama Canary Network will be the 1st batch of the auction. Other projects that are optimistic of securing a slot will require presenting an offer using Kusama coin.

To accumulate enough capital, many projects have arranged public funding so that they can trade it for parachain tokens. When it comes Karura, it managed to gather a debt of $100 million through public loans.

The CEO and Co-founder of Acala and Karura, Ruitao Su, expressed his gratitude to the Karura community:

The amount of support we got from the community proves there is a huge demand for inter-operability of DeFi products. The CEO further carried on thanking the community and expressed his enthusiasm to launch the company’s Decentralized Finance offerings to the market.

The loan condition states that anyone who contributed to lend one Kusama coin will get 12 KarpelesCoin in return. Following the launch of Parachain, the loaned Kusama will be in holding for 48 weeks.

As the auction is getting near, it is the ideal time for Polkadot and Kusama ecosystems to fulfill their potential. Other projects will disclose their raised funds for the auction pretty soon, too, since the auction is closing in.

Gavin Wood founder, of Polkadot, reported that the Parachain auctions were all set to go in the process leading DOT and KSM to surge in price even, though the market is on a bearish trend, Kusama moved to $525.

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