Blockchain project Polkadot’s bid for a $1.2 billion valuation has hit a snag. Since January ‘19, Web3 Foundation, a Switzerland-based non-profit firm behind this project, has been pushing itself to raise up to $60 million USD via a private token sale. According to people familiar with the situation, three Chinese funds have agreed to invest $15 million in the project’s DOT tokens.

These three investors have agreed to pay prices which on average are valued below $1 billion. It is unclear how many tokens the three Chinese funds have bought, or how many investors besides them participated. A source said Polkadot has been able to sell only 70 per cent of the intended 500,000 DOT. Assuming other investors have participated at similar valuations to the three funds, selling the remaining 30 per cent won’t bring in the targets. To raise $60 million, Polkadot will have to increase the allocation of tokens for sale.

In a statement, Web3 said it could not comment on any private sale, “but we’re looking forward to making that information public as soon as possible.”

 It has been known that proceeds from the sale are to be used for testing Polkadot’s mainnet, incentivizing developers and funding Web3 Foundation’s research and operations. Polkadot is one of the most hotly anticipated blockchains that have yet to launch. Polkadot, created by Gavin Wood, co-founder of Ethereum and founder of Parity Technologies, aims to create a blockchain platform which will enable other blockchains to work in conjunction with each other. Parity CEO, Jutta Steiner said, “True interoperability delivered in a scalable, governable protocol has real potential to push the dream of an open internet forward. We’ve been hard at work over the past year building [custom-blockchain platform] Substrate and development on Polkadot has progressed as hoped.”

The Web3 Foundation collected $145 million through the sale of half the total 10 million supply of DOT in October ‘17, valuing the tokens around $30 apiece. According to Polkadot’s white paper, “30 per cent of the total token supply was reserved for Web3 Foundation, while the remaining 20 per cent was to be distributed prior to the mainnet launch, the date of which is still to be determined. Web3 has spent half of its allocation, leaving it with 15 per cent of the total supply.”

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