KR1 invests $4.4M in Shiden, a smart contract platform and dApp layer on Kusama
KR1, a blockchain asset & crypto investment company, today announced it has participated in the Shiden crowd loan and upcoming Kusama (KSM) parachain auction. KR1 contributed a total of 10,000 KSM; equivalent to USD $4,449,700 at the time of the contribution, to the Shiden crowd loan campaign.
Shiden Network is a smart contract platform and application layer on Kusama; which acts as a research and development chain of the Plasm Network. Shiden natively supports the Ethereum Virtual Machine, WebAssembly, and multiple layer-2 solutions; enabling support for various apps for DeFi, NFTs, and more.
The contributed KSM will be time-locked on the Kusama blockchain for 48 weeks. Following the completion of the respective Shiden parachain lease, the KSM will be returned to KR1. Upon a successful Shiden parachain auction bid, KR1 will receive a to-be-determined amount of Shiden (SDN) tokens.
Also, KR1 will receive a yet-to-be-determined amount of SDN tokens in line with KR1’s participation in Plasm’s (PLM) first and second lock drop campaign, which will be confirmed in a later announcement.
This method of token distribution involves no direct investment of capital, instead, it is an indirect investment; similar to the company’s previous participation in ‘lock drops’ with the opportunity costs being the inaccessibility of the locked KSM funds; as well as foregoing any staking yields on the contributed KSM for the time period.
“The crowd loans kick-off and initiation of parachain auctions are a historic milestone for Kusama, Polkadot and the wider ecosystem. While delivering bleeding-edge technology; the Polkadot and parachain teams are also continuing to innovate in token distribution mechanisms, which will prove to be hugely beneficial for the blockchain community.”
– George McDonaugh, Managing Director and Co-Founder of KR1
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