On Wednesday (July 3), the well-known public chain Polkadot token DOT quickly fell back to $6.34. The first half financial report showed that the team spent a lot of money on marketing but saw no results, which triggered community criticism. Manta Network founder Victorji.eth accused the ecosystem of being "toxic", accidentally exposing that the public chain discriminated against Asians.
According to the Polkadot balance sheet, the public chain reserves manage up to $245 million in asset reserves, including: $188 million in liquid assets, including $8 million in USDT and USDC stablecoins, mainly distributed on Relaychain, AssetHub and Hydration; $47 million used by the Treasury for specific purposes; $6.4 million dedicated to Omnipool; $3.7 million in loans receivable to provide a one-year loan for decentralized finance (DeFi) ecosystem projects.
Polkadot still has sufficient funds in terms of current assets. However, the total expenditure in the first half of the year was as high as $87 million, far exceeding the total expenditure of $46 million in 2022 and 2023, but the use of the funds has caused great controversy. Specifically, it includes $37 million in promotional expenses, mainly for advertising and media, online and offline community building activities, and large-scale conferences; $23 million in development expenses; $15 million in economic expenses; $5.5 million in talent and education expenses; $3.8 million in operating expenses; and $2.1 million in research funds.
(Source: Polkadot)
The crypto community has expressed strong doubts about this, believing that at the current rate of burning money, Polkadot will go bankrupt in less than two years.
Well-known opinion leader Trading Axe wrote: “Polkadot seems to offer KOLs $300,000 per month in marketing fees, but no substantive or valuable content is published. This marketing model itself is flawed. In addition to some accounts with more than 100,000 followers, it does not mean that they have active followers. Many KOLs do not post because they are optimistic about the project, but more for income.”
“Polkadot spent $37 million on marketing to attract new users, developers, and businesses, yet it remains virtually unknown on platforms like Twitter.”
In addition, allegations that the Polkadot public chain discriminated against Asians were accidentally exposed.
As the founder of the modular blockchain Manta Network, Victorji.eth criticized the Polkadot ecosystem as "highly toxic" and even discriminating against Asians.
(Source: Twitter)
He noted: “As the founder of the largest non-DOT TVL and market cap project in the Polkadot ecosystem, I have to say that we want no engagement at all with the Polkadot ecosystem and team.”
“It’s a highly toxic ecosystem that adds no real value to Web3 and has no focus on users or adoption. We’re simply too busy shining a light on the discrimination we face as Asian founders in this ecosystem,” he continued.
He also emphasized that this is a common feeling among all Asian founders.
He concluded by writing: “The Polkadot team is incompetent and not truly decentralized. If they had spent some time and effort to support the builders of their ecosystem, we wouldn’t be as disappointed as we are now, and the entire Polkadot ecosystem is basically dead.”
(Source: Twitter)
