Polkadot accused of ‘lighting money on fire,’ spent $50K on CoinGecko logo
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Polkadot’s CEO has refuted claims that the company has just two years of funds remaining after it spent $36.7 million on advertisers, influencers, and conferences at a rate that led one observer to claim that the firm was ‘lighting money on fire.’
Polkadot shared a June 28 treasury report revealing it has $245 million worth of assets left and spent $87 million in the first half of 2024. According to the report, over 42% of this year’s spending was on ‘outreach.’
This spending includes $4.8 million on influencers, $10 million on sponsorships, $4 million on digital ads, and $4.4 million on conferences.
The report also noted its treasury revenue dropped from 414,291 DOT to 171,696 DOT during the second half of 2023 and the first half of 2024.
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Its author, head ambassador Tommi Enenkel, said, “At the current rate of spending, the Treasury has about two years of runway left, although the volatile nature of crypto-denominated treasuries makes it hard to predict with confidence.”
However, Polkadot CEO Fabian Gompf took to X (formerly Twitter) to dispute this, insisting that the treasury “is never going to run out of funds.”
“This is not @Web3foundation spending but on-chain treasury spending voted on by the community,” he wrote. “The foundation has a >>5-year runway without selling a single DOT.”
He added, “The whole notion of a ‘runway’ for the on-chain treasury is misleading. The treasury has continuous inflows. It’s never going to run out of funds.”
He concluded his tweet by acknowledging that “the on-chain treasury has spent too much on what are likely low ROI activities,’ and encouraged the Polkadot community to vote if it wants change.
Polkadot’s $53K CoinGecko logo
Gompf’s final point is apparently backed up by an image of a Polkadot market bill shared by one X user. It appears to show the crypto firm’s $53,000 invoice for six months of work creating an animated logo on CoinGecko.
In response, users on X are offering their services as ‘key opinion leaders’ in exchange for $300,000 a month — the figure that the company allegedly pays some influencers.
Read more: Influencer ghosted Logan Paul NFT lawsuit to ‘save six figures’
Venture capitalist Adam Cochran described Polkadot’s outreach spending as ‘lighting money on fire,’ noting that he hasn’t seen a single advert from the firm.
Polkadot claims the influencer budget is split with $2.2 million, $1.3 million, and $490,000 going to agencies EVOX, Lunar Strategy, and Chainwire respectively.
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Edit 18:40 UTC, Jul 2: Updated to include comment from Polkadot CEO refuting claims that the firm has only two years of funds remaining.