Plasma's XPL Token ICO Begins July 17 Following $1 Billion Deposits

Plasma, a Bitcoin-based stablecoin blockchain, has announced that its initial coin offering (ICO) for the XPL token will commence on July 17. This development follows a significant influx of $1 billion in crypto deposits made last month, which was initially set at $500 million. The deposits were made to secure allocations for the ICO, which will account for 10% of the total XPL token supply.

Allocations for the XPL tokens will be determined on a pro-rata basis, considering both the total amount deposited and the duration of the deposit. Any unclaimed portions will be available for purchase by depositors. The deposited tokens will be locked on July 14 and will remain locked for at least 40 days post-sale. Participants wishing to withdraw their tokens must do so before July 14.

Paul Faecks, the founder and CEO of Plasma, previously mentioned that this lock-up period is a regulatory compliance measure, with U.S. participants requiring a 12-month lock-up. Following the 40-day period, Plasma will begin preparations for its mainnet launch, which could occur as early as August 26 if the sale is successful on the first day. This aligns with Faecks’ earlier projection of a “late summer” launch.

Jacob Wittman, the general counsel at Plasma, confirmed that the third audit is currently underway, with the team focused on ensuring the system is ready for mainnet launch. However, nearly 62% of Myriad Market predictors believe that Plasma won’t hit mainnet before September.

Several unreleased stablecoins are set to be launched alongside the Plasma mainnet, although the network could not confirm if these will be issued by traditional companies. Wittman stated that multiple teams are preparing to launch Plasma-native stablecoins on day one, including some that are still in stealth mode. Plasma is also in active conversations with traditional financial players who see stablecoins as a means to increase efficiency, lower costs, and expand into new markets.

Plasma aims to create a blockchain specifically designed for stablecoins, featuring optimizations such as gasless stablecoin transactions. It will use Bitcoin as a settlement layer, with a design that closely mirrors Ethereum and is EVM-compatible. Faecks stated that the company’s goal is to become the leading stablecoin chain, although not every token on the network will be a stablecoin. XPL, for example, is not a stablecoin, and the network will be entirely permissionless, allowing anyone to build on the blockchain.

The stablecoin market is currently valued at $255.9 billion, and its growth is expected to accelerate if the GENIUS Act passes in the U.S. This bill establishes a framework for issuing and trading stablecoins, which some experts believe could lead to the launch of thousands of new stablecoins. As a result, there have been reports of traditional companies exploring the creation of their own stablecoins.

Plasma is strategically positioning itself to capitalize on this growing market, which could soon experience significant expansion. The network’s focus on stablecoins and its optimizations for gasless transactions make it a strong contender in the stablecoin space.