The Nervos Network STO, the co-founder of the project is Kevin Wang, is mainly a security token offering where Polychain Capital has investment. They want to add more 5.7 million to this STO with the previous investment. The STO, the project having $28 million fundraise in 2018, wants to raise an anonymous amount through the CoinList platform soon.
An unclosed amount is supposed to be contributed into this project by the Hong Kong-based China Merchants Bank International or CMBI, which isn’t fully owned by the government. But there is an uncertainty that whether someday Chinese banks will be shut out of the dollar economy as already an allegation stood of sanctions violations.
But the bank’s plan is yet unclear. CMBI is recognized as strategic partner in case of financial plans and other types of applications they want to utilize for the blockchain.
The 2018 fundraise including CMBI and Sequoia China was basically a private sale with guaranteeing 14 percent of the initial token distribution in late 2019. The partnership wants to build up decentralized applications. With an eye to providing easier capital flows between cryptocurrencies, Huobi made a partnership with the exchange to create a DeFi platform.
Nervos platform will be a regulatory compliant, publicly owned and neutral. Real-world assets can flow into the gateways.
STO to DeFi
Sufficient miners and node operators are needed for Nervos team to make the system censorship-resistant. They want to gain it through diversification indeed. 23.5 percent of the initial token supply is developed just to incentivize open-source contributions and business partnerships.
It’s unclear that the hedge fund of Polychain Capital will operate a node or mine cryptocurrency for the Nervos project. But the investment is expected to be profitable indeed. It is a global project wrapped with conviction of authorities.
Making smart contracts akin to ethereum is really coercive. But the procedures being done by Nervos is unique. Four established crypto mining pools took part in the recent testnet competition before the STO on the other side institutions are taking note of this STO. It’s really great news indeed to the involvers.
Bitcoin has paved the way with danger, uncertainty and expectation and then it allured profitable speculation. But it was not an easy journey. In the present world, CMBI is not the only bank to tap in the crypto ecosystem and WEG Bank AG is also in the line.
They also dream about institutions to become major users of the forthcoming Nervos platform.