KR1 (AIM:KR1 ) said it has participated in a token distribution event, termed a 'lockdrop', for Plasm.
The cryptocurrency and blockchain investor said it has time-locked 1,232 Ether, equivalent to US$253,249, via a smart contract for various durations.
In return for locking up the Ether, the company said it will receive 66.2 million Plasm tokens. Plasm is a highly scalable decentralised application platform that is going to launch on the Polkadot blockchain.
Polkadot is a highly anticipated blockchain that is launching this summer and has also been described as KR1’s “largest investment to date,” the group detailed in a morning statement.
KR1 will regain access to the time-locked Ether in three intervals, with the large majority being released within 300 days and the residual being released after 1,000 days from the time of the lockdrop.
The token distribution involves no direct investment of capital, the group said - instead, it is an indirect investment with the opportunity costs being the inaccessibility of the time-locked Ether funds.
The company said it considers the investment ‘a novel and innovative way to optimize the utilization of assets in its portfolio.’
Previously, KR1 has successfully participated in similar activities with crypto networks such as Edgeware and ChainX.
Shares in KR1 closed at 6.6p on Friday afternoon.
“Plasm is a giant step for allowing developers to build super-fast and scalable apps on the Polkadot blockchain,” said Keld van Schreven, Managing Director and Co-Founder of KR1.
“Once again, KR1 is innovating in value creation by actively participating in lockdrops, using our existing assets and helping nascent crypto networks get off the ground,” he commented.
He added, “Lockdrops, as well as similar types of collateral ‘drops’, are an exciting new value creation method for KR1, putting the portfolio’s assets to maximum use and establishing strong connections with upcoming crypto networks as key partners.”
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