Crypto

MELD’s $1 Billion ISPO Highlights Cardano’s Emerging Use Cases and Crypto Fundraising

MELD on Cardano

MELD’s first-ever initial stake pool offering, which ended on Oct. 27, attracted approximately 40,000 investors who staked almost 620 million ADA.

DeFi is a financial protocol that was built by DeFi. MELD recently made news for bringing more than $1 billion in staked Cardano (ADA) to its protocol using a novel funding mechanism known as an initial stake pool offering, or ISPO, signaling a significant shift in how early adopters fund blockchain firms. MELD CEO Ken Olling spoke with Cointelegraph about the relevance of the ISPO as well as Cardano’s role in facilitating widespread participation in the stake pools.

A Summary of the ISPO

The ISPO is an innovative approach for early adopters and investors to promote a project by transferring cryptocurrency to public stake pools in exchange for project tokens. Even though the concept had been offered elsewhere, MELD is currently the only known project to use an ISPO.

The MELD ISPO, which began on July 1, allowed Cardano users to stake their ADA for any length of time and in any amount in exchange for MELD tokens. After around $100 million in ADA was given, the first stake pool was full in less than 24 hours. Four stake pools totaling approximately $200 million were filled in less than five days.

On October 27, MELD ceased to accept new delegations. Nearly 620 million ADA had been staked at that point, with a total worth of over $1 billion. Over 40,000 people attended the ISPO in total. MELD also had a profit of $10 million.

The ISPO was a departure from prior crypto financing endeavors, such as the initial coin offering (ICO) and security token offering (STO), and a tribute to Cardano’s developing ecosystem.

Before regulatory crackdowns and a devastating crypto bear market put an end to the craze, blockchain initiatives earned billions of dollars in funding in 2017 and 2018. 3TS Capital is the source of this information.

What’s the Deal with Cardano?

MELD chose Cardano for its ISPO over all other proof-of-stake (PoS) chains because of its cheaper transaction costs, appealing staking mechanism, and overall architecture, according to CEO Ken Olling. Cardano was seen as the greatest option during MELD’s initial development phase in mid-2020, given the conditions surrounding Ethereum (ETH) at the time.

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“There aren’t any more established blockchains,” Olling told Cointelegraph, adding, “There aren’t any more established blockchains.”

“Before regulatory crackdowns and a devastating crypto bear market put an end to the craze, blockchain initiatives earned billions of dollars in funding in 2017 and 2018. 3TS Capital is the source of this information.

MELD chose Cardano for its ISPO over all other proof-of-stake (PoS) chains because of its cheaper transaction costs, appealing staking mechanism, and overall architecture, according to CEO Ken Olling. Cardano was seen as the greatest option during MELD’s initial development phase in mid-2020, given the conditions surrounding Ethereum (ETH) at the time.

“One of our requirements was a modern PoS blockchain,” Olling said. “There aren’t any more established blockchains.” Cardano was the only viable option at the moment. In terms of the blockchain, you have Solana, which has a two-tiered, much more sophisticated staking mechanism. It also follows a different set of rules in terms of legality. Then there are additional Proof-of-Stake blockchains, but none of them provide the complete image or package.”

Despite its recent challenges, Olling said his business remains “extremely enthusiastic” about Cardano’s future. After being one of the top performers in the crypto market through September, ADA’s performance has slowed significantly in recent months.

Increasing your Financial Efficiency

MELD is a non-custodial banking platform that allows users to lend and borrow with crypto and fiat currencies while also earning interest on their MELD tokens. On the site, lenders can deposit both cryptocurrency and fiat currency. After posting their crypto as collateral, borrowers can borrow in both sorts of assets.

For investors, the crypto collateral option is appealing since it allows them to borrow fiat to cover their bills without having to sell their digital assets and pay a capital gains tax. (Capital gains taxes are a cause of concern for cryptocurrency investors, with large bag holders always seeking methods to make the most of their newfound riches.)

When asked what sets MELD apart from other crypto lending and borrowing platforms, Olling cited two factors. “On the highest level,” he said, “we offer transparency.” “It’s on the blockchain, so unlike centralized crypto lending and borrowing businesses, what happens with monies on the protocol is open-sourced.”

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.