Post-Binance IEO: $2M Worth of Elrond (ERD) Pre-Staked Within One Week!

Binance CEO, Changpeng Zhao (CZ) bragged in the team’s first letter of the year that IEOs hosted on their ‘Launchpad’ platform had yielded more returns for investors than what was served on other exchange, and it appears that trend may continue.

Within less than a week after unveiling its pre-staking platform, the Elrond team has seen token holders stake 1 Billion Elrond (ERD), the equivalent of roughly $2 million in two pre-staking waves, with eight of such staking sessions still in the pipeline this January.

The current amount of tokens staked also equates to a little over 5% of the token’s supply.

The pre-staking waves as per Elrond is a vital step in the project’s bootstrapping process and will see ERD holders receive incentives for supporting the network and mainnet launch, by locking their ERD into a smart contract.

These contributions will reportedly help Elrond to reach the necessary economic security threshold for that milestone while investors can earn rewards without being required to run a validator node.

Announcing the volume of ERD staked in the second pre-staking wave, Beniamin Mincu, CEO and Founder of Elrond, wrote in a tweet:

Second Elrond prestaking wave is filled!

Another ~$1m USD of $erd locked in 1.5 hours ?

Total of 1 Billion $erd or ~$2m USD locked in 2 waves out of 10

Wave 3 starts in less than 3 days.

This is what bootstrapping looks like.

For more info check https://t.co/2iFudp2spc ? pic.twitter.com/9IGJSXzWxg

— Beniamin Mincu ⚡ (@beniaminmincu) January 3, 2020

ERD holders who stake their coins will, according to Elrond, receive rewards between 17%-32% annualized returns while their tokens will be locked up for at least 30 days, with a 7-day unbonding period also on the cards.

Elrond’s initial exchange offering was conducted on Binance Launchpad in June, with the project selling 5 billion ERD tokens (25% of the token’s supply) for a total of $3.25 million.

At the time of writing, ERD was exchanging hands at $0.0017 with a market cap of $10.8 billion according to data from CoinMarketCap.