$1 Billion Valuation May Elude Ethereum Co-Founder's New Blockchain Polkadot

Blockchain project Polkadot's bid for a $1.2 billion valuation has hit a snag.

These three investors agreed to pay prices that, on average, valued the project below $1 billion, the sources said - falling short of the unicorn threshold Polkadot was reportedly seeking.

While it's unclear how many tokens the three Chinese funds bought, or how many investors besides them participated, one source said Polkadot has been able to sell only 70 percent of the intended 500,000 DOT. Rather than closing the private round now, Polkadot will continue trying to sell the remaining tokens to accredited investors and distributing them freely to community contributors, sources said.

To raise the full $60 million Polkadot would need to increase the allocation of tokens for sale.

Stepping back, Polkadot is one of the most hotly anticipated blockchains that have yet to launch.

Created by Gavin Wood, co-founder of ethereum and founder of Parity Technologies, Polkadot aims to build a blockchain network that can enable other blockchains to work in conjunction with each other.

The foundation still plans to do another public distribution of tokens "At or around" the time the Polkadot blockchain launches, its statement said.

"Our goal is to ensure that DOT tokens make it into the hands of those that will actively participate in helping build out the Polkadot network."

The $60 million initially sought from the sale implies a target price per DOT of $100 to $120. The tokens are not listed on any major exchanges, as Polkadot discourages trading them.

Some members of the ethereum community are critical of Polkadot's similarity to permissioned blockchains, given how council votes will eventually govern the network when it launches.