Polkadot has been accused of ‘lighting money on fire’ after it spent $36.7 million on advertisers, influencers, and conferences at a price that has reportedly left it with simply two years price of funds remaining.
Polkadot shared a June 28 treasury report revealing it has $245 million price of belongings left and spent $87 million within the first half of 2024. In response to the report, over 42% of this yr’s spending was on ‘outreach.’
This spending consists of $4.8 million on influencers, $10 million on sponsorships, $4 million on digital advertisements, and $4.4 million on conferences.
The report additionally famous its treasury income dropped from 414,291 DOT to 171,696 DOT through the second half of 2023 and the primary half of 2024.
Its creator, head ambassador Tommi Enenkel, mentioned, “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.”
Polkadot’s $53K CoinGecko brand
One X consumer shared what seems to be a Polkadot market invoice displaying the crypto agency’s $53,000 bill for six months of labor creating an animated brand on CoinGecko.
Customers on X are additionally providing their providers as ‘key opinion leaders’ in alternate for $300,000 a month — the determine that the corporate allegedly pays some influencers.
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Enterprise capitalist Adam Cochran described Polkadot’s outreach spending as ‘lighting money on fire,’ noting that he hasn’t seen a single advert from the agency.
Polkadot claims the influencer price range is cut up with $2.2 million, $1.3 million, and $490,000 going to businesses EVOX, Lunar Technique, and Chainwire respectively.
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