Plasma, a Bitcoin-backed stablecoin network, quickly amassed $500 million in deposits for its upcoming token sale. Notably, one trader paid $100,000 in Ethereum transaction fees to prioritize their $10 million USDC deposit during this high-demand event. This surge in interest is seen as a potential revival of the initial coin offering (ICO) craze last observed in 2017. The Plasma project plans to utilize its Bitcoin sidechain to address specific needs in the stablecoin market, with a future auction set to sell 10% of its XPL token supply. Despite the rush, only $50 million worth of tokens will actually be offered, promising users yield on deposits while allowing withdrawal at any time. The renewed excitement surrounding stablecoins, exemplified by this ICO, may signal a market shift, as the U.S. Senate considers stablecoin regulation and firms like Circle recently gained significant market traction. While speculation surrounds these developments, some community members express concern over the disproportionate amount of supply allocated to larger investors, or whales, as the top 10 depositors accounted for a substantial portion of the interest shown. No definitive date has yet been set for the token sale, but the enthusiastic reception might spur similar initiatives across the crypto landscape.

Source 🔗