“In view of the extraordinary attraction of MOVR on the secondary markets, we as a company had to find a balance and could not miss the opportunity to realize part of the profits from our KSM brought in.”
(), the digital asset investment company, participated in the crowdloan and kusama parachain auction held by Moonriver (cryptocurrency network).
KR1 contributed 5,000 KSM (cryptocurrency tokens) to Moonriver’s crowdloan campaign, successfully securing the second parachain slot in the previous round of parachain auctions in Kusama.
According to the Polkadot Wiki, a Parachain slot is a scarce resource on the Polkadot cryptocurrency network and only a limited number will be available.
Parachain slot auctions take advantage of Polkadot and Kusama’s ability to provide developers with opportunities to create new crypto assets.
Moonriver is a community-run Ethereum-compatible smart contracts platform on Kusama, which acts as the permanently funded Canarian network of the Moonbeam project; A canary net is a self-contained net whose primary function is to serve as a test net (ie, to be the “canary in the coal mine”).
Following the successful Moonriver Parachain auction bid, KR1 received an initial unlocked tranche of 19,666.35 MOVR (the Moonriver cryptocurrency) and expects to gradually receive an additional estimated 45,888.15 MOVR over a 48-week period.
The KSM provided are locked on the Kusama blockchain for a period of 48 weeks and will be returned to the company after the respective moonriver parachain lease has been concluded. This method of token distribution does not involve a direct capital investment, but an indirect investment, with the opportunity cost being the inaccessibility of the locked KSM funds as well as the waiver of the staking returns on the brought in KSM for the period, KR1 said.
The company has already realized part of its first tranche of the Moonriver tokens received by selling a total of 15,643.19 MOVR and in turn purchasing a total of 5,162.25 KSM with the entire proceeds from this sale.
“It’s fantastic to see the enthusiasm within the Kusama community for Moonriver, as well as the many other extremely well coordinated launches of technically mature parachains. Moonriver and the entire team have our full support, and we look forward to developers taking advantage of Moonriver’s Ethereum-like environment, which is fully compatible with existing tools and protocols2, said George McDonaugh, managing director and co-founder of KR1.
“In view of the extraordinary attraction of MOVR on the secondary markets, we as a company had to find a balance and could not miss the opportunity to realize part of the profits from our KSM. This partial exit enables us to participate even more actively in other upcoming Parachain auctions and also strengthens our future staking activities, ”he added.