KR1 invests in Plasm application platform

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KR1 PLC (LON:KR1) said it has participated in a token distribution event, or ‘lockdrop’, for Plasm, a decentralised application to be launched on the Polkadot blockchain.

The cryptocurrency and blockchain investor said it has time-locked 1,232 Ether, equivalent to around US$253,250, via a smart contract for various durations. In return, it will receive around 66.29mln Plasm tokens.

READ: KR1’s Argent Labs completes US$12mln fundraising

KR1 said it will regain access to the time-locked Ether in three intervals with the large majority being released within 300 days and the residual being released after 1,000 days from the time of the investment.

The token distribution involves no direct investment of capital, the company said, instead it is an indirect investment with the opportunity costs being the inaccessibility of the time-locked Ether funds.

KR1 said the investment was “a novel and innovative way to optimise the utilization of assets in its portfolio”.

Plasm is a highly scalable platform that allows developers to build secure applications using its ‘Layer 2’ solution for fast and high capacity transactions.

“Plasm is a giant step for allowing developers to build super-fast and scalable apps on the Polkadot blockchain. Polkadot is a highly anticipated blockchain that is launching this summer and is also KR1’s largest investment to date”, KR1 managing director and co-founder Keld van Schreven said in a statement.

“Once again, KR1 is innovating in value creation by actively participating in lockdrops, using our existing assets and helping nascent crypto networks get off the ground. These novel token distributions signal the importance and potential future value of crypto networks. Lockdrops, as well as similar types of collateral ‘drops’, are an exciting new value creation method for KR1, putting the portfolio’s assets to maximum use and establishing strong connections with upcoming crypto networks as key partners”, van Schreven added.

In late-morning trading on Monday, KR1’s shares were trading at around 7.5p on the Aquis exchange.

–Adds share price–

Published at Mon, 08 Jun 2020 10:20:00 +0000 KR1 invests in Plasm application platform

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