Plasma token sale raises $373M in 10 days 746% oversubscribed to $500M valuation

Plasma, a Layer 1 blockchain platform backed by Bitfinex, has secured $373 million in a 10-day public token sale, surpassing its $50 million target by 746% and valuing the project at $500 million. The offering sold 10% of its 1 billion XPL token supply, with over 3,000 unique wallets participating, averaging $83,629 per commitment [1]. The rapid fundraising underscores growing institutional and retail interest in infrastructure for stablecoins, a critical use case in decentralized finance (DeFi), remittances, and cross-border payments.

The project’s success positions it as a direct competitor to Ethereum and other Layer 1 networks by offering low-cost transactions and cross-chain compatibility. Plasma combines Bitcoin’s UTXO model with the Ethereum Virtual Machine, aiming to enhance Bitcoin’s functionality while enabling programmable stablecoin transfers without fees [1]. Bitfinex, a key player in the stablecoin market, has leveraged its ecosystem to attract early-stage funding, including a $3.5 million round in October 2024 and a $20 million Series A led by Framework Ventures in February [1].

The token sale’s oversubscription highlights investor confidence in Bitfinex’s track record and Plasma’s technical roadmap. Paul Faecks, Plasma’s founder, emphasized the project’s role in addressing regulatory and scalability challenges for stablecoins, a sector under heightened scrutiny as the U.S. Congress moves to establish frameworks for digital assets. The recent enactment of the GENIUS Act, signed by President Donald Trump on July 18, marks a pivotal shift in regulatory clarity for stablecoin projects [1].

Analysts note that Plasma’s valuation and fundraising speed could intensify competition among Layer 1 protocols, compelling other platforms to accelerate development or risk losing market share [2]. However, the project’s long-term success will depend on its ability to deliver on promises such as high throughput, seamless DeFi integration, and compliance with evolving regulations.

The sale’s valuation remains speculative, but Plasma’s alignment with Bitfinex’s liquidity networks and user base offers a unique advantage. Challenges persist, including regulatory risks as global authorities tighten oversight of stablecoin ecosystems. For now, the token sale represents a milestone in Layer 1 innovation, demonstrating the sector’s resilience amid macroeconomic headwinds.

Source:

[1] [Bitfinex-backed Layer 1 Plasma raises $373 million in 10-day token sale](https://www.theblock.co/post/364476/bitfinex-backed-layer-1-plasma-raises-373-million-in-10-day-token-sale)

[2] [Plasma Token Sale Oversubscribed 746% to $500M Valuation in 10 Days](https://www.ainvest.com/news/plasma-token-sale-oversubscribed-746-500m-valuation-10-days-2507/)