The Umbrella Network, a community-owned oracle solution for powering decentralized finance and blockchain-based applications, announced today that it successfully carried out an initial decentralized exchange offering, or IDO, on Polkastarter.
Receiving heavy interest from community members, users, and crypto enthusiasts, the listing of Umbrella’s UMB token on February 9th resulted in one of the largest IDO’s to date on Polkastarter, a cross-chain decentralized exchange (DEX) that is built on the Polkadot network.
In conducting its offering, Umbrella took deliberate steps to ensure strong participation at fair prices with a limited concentration of tokens among the largest holders and was rewarded with a strong showing. The company saw its community of unique UMB holders grow to over 6,000 in the four days following the listing — with open staking reaching roughly $8 million in the first twelve hours after the event.
Using a delegated proof-of-stake consensus model that helps ensure cost-effective, reliable, and secure transmission of data; Umbrella Network’s oracle system is fully decentralized and features nodes that can individually validate thousands of transactions for the price it would take to confirm a single transaction in other networks.
In a statement, the venture’s founding partner, Samuel Kim, cited the strong participation in Umbrella’s IDO as more evidence of its appeal to an expanding audience of people who believe in the benefits of decentralized governance and platforms and as portending rapid growth for the project.
“After the success of our IDO, we are even more excited about the future of the Umbrella Network. This offering represents another key step in bringing decentralized oracle networks to an industry where demand for high-quality external data is growing exponentially,” Kim said. “We firmly believe in the power of community governance and decentralized solutions, and we will use this critical moment to move forward toward the next steps in Umbrella Network’s evolution.”
Underscoring the widespread interest in the project’s mission, the Umbrella Polkastarter IDO received approximately 110,000 applications for only 1,000 randomly selected slots, which were white-listed to ensure that bots didn’t disrupt the distribution process. A total of 625 white-listed applicants ultimately received tokens during the final sale, enabling each of them to purchase up to $400 worth of UMB.
Umbrella received initial investments from NGC Ventures, The LAO, CMS Holdings, and several others.