Large investors and automated bots quickly snapped up the stablecoin-focused blockchain’s $500 million ICO deposit allocation. In response, the project escalated the cap, pushing the total deposit limit to $1 billion in an effort to accommodate rising demand.
When Plasma, the stablecoin-focused blockchain supported by Tether, saw its $250 million deposit vault fill almost instantly on June 9, the founders immediately raised the cap to $500 million. Despite this move, whales and bots overwhelmingly dominated the sale. A few days later, the team responded by increasing the cap again to $1 billion, which investors fully subscribed within just 30 minutes.
The increase did not represent a direct sale of Plasma’s upcoming XPL token. Instead, the funds were deposited to secure eligibility for participating in the token offering. This ICO aimed to raise $50 million and valued the project at $500 million.
A Blockchain Built for Stablecoin Efficiency
Plasma describes itself as a blockchain specifically designed for stablecoins—a Bitcoin sidechain tailored for efficient stablecoin operations. The platform supports Ethereum Virtual Machine (EVM) compatibility and delivers high-speed performance. It enables zero-fee USDT transfers for basic payments, while more complex transactions incur gas fees payable in either USDT or BTC. Tether, along with its affiliated exchange Bitfinex, has backed the project, joined by investors such as Peter Thiel’s Founders Fund and other notable supporters.
Plasma emphasized on X on June 11 that achieving broad participation in the XPL sale stands as one of its primary objectives. The platform shared this message shortly after completing the second deposit window, which had been announced with minimal notice.
That decision came with a clear rationale.
Plasma explained on X that community members had expressed frustration over missing the initial deposit window, claiming bots and snipers had been overly prepared. To address this, the team reopened the deposit cap, aiming to offer a fairer opportunity to genuine users. The announcement was intentionally made with limited notice to minimize automated bot setups and prioritize actual participants—particularly those active on Discord and subscribed to alerts.
Crypto Whales Dominate Market Moves
Following the June 9 increase in the initial deposit quota, X user djma noted that just 1,108 participants managed to contribute to the first $500 million round. According to djma, the top 10 depositors alone secured 38% of the total cap.
“Say hello to the latest Plasma whales,” wrote djma, emphasizing that the challenges surrounding ICO fairness still remain unresolved.
Plasma confirmed the same wallet count at that time, highlighting a median deposit of approximately $35,000. The team expressed enthusiasm about the strong level of interest, describing the demand as a positive indicator for the project’s momentum.
A participant who placed the largest bid during the initial deposit phase contributed $50 million, securing 10% of the available allocation. Another user reportedly spent $100,000 on gas fees, as shown by Etherscan data, sparking concerns about a potential gas fee battle reminiscent of those seen during the NFT boom.
The Plasma ICO didn’t just reflect a rush of capital,” said Martin de Rijke, head of growth at Maple Finance. “It highlights that accessibility issues still plague the crypto space and remain largely unaddressed.
He emphasized that the overwhelming demand was evident in the speed and volume of deposits. However, he warned that when whales and bots secure most of the allocation, it reinforces a familiar narrative: the system still favors those with the fastest technology or the most capital. He argued that if ICOs are making a comeback, projects must reconsider their launch structures or risk replicating the same inequities under a new label.
Following the increase in the total deposit cap to $1 billion during the second funding round, Etherscan recorded a rise in participant count to 2,911.
Stablecoin-Focused Blockchains Enter the Spotlight
Plasma does not stand alone in its mission to improve the speed and affordability of stablecoin transactions. Other blockchain initiatives are also actively working to enhance efficiency and reduce costs in the stablecoin ecosystem.
On June 5, Stable, a USDT-centric blockchain supported by Bitfinex and the USDT liquidity platform USDT0, emerged from stealth mode. The project introduced itself as a new Layer 1 blockchain that uses USDT as its native gas token and enables free peer-to-peer USDT transfers.
Stable, by contrast, operates as an independent Layer 1 blockchain rather than functioning as a sidechain.
Codex, by contrast, operates as a Layer 2 solution and promotes itself as “stablecoin infrastructure designed for business applications.” It emerged from stealth mode in April, revealing a $16 million funding round led by Dragonfly Capital. Cumberland Labs, Wintermute Ventures, Coinbase, and USDC-issuer Circle also participated in the investment.
