PoolTogether, a DeFi platform, has raised approximately 471 ETH via an NFT campaign in order to strengthen its legal defense fund.
Funds raised halfway
To raise funds for legal defense against a class action lawsuit, the platform organized an NFT sales campaign. The goal is to raise 769 ETH. This would amount to approximately $1.5 million as of the time this article was written. Nearly half of the goal has been met by the campaign, which has raised 479.9 ETH. The PoolTogether community is optimistic that the goal can be met, as the crowdfunding campaign will continue for 21 more days.
According to PoolTogether,
PoolTogether Inc. will receive proceeds from the sale. These funds will be used to pay legal expenses for the company, its officers and directors as necessary. PoolTogether Inc. may use funds not directly for legal expenses for business purposes.
The Pooly Collection
The PoolTogether team organized the NFT campaign. It included the Pooly collection. This limited edition collection of NFTs is available for supporters to purchase to help the legal fund.
There are three types of NFTs in the collection, each with different availability. The Pooly – Supporter NFT is the cheapest and only 7,702 of 10,000 pieces are left. The Pooly – Lawyer NFT is next at 1 ETH, with 826 pieces remaining. The Pooly – Judge NFT is the last and most rare in the collection. It is priced at 75 ETH, has 9 remaining pieces, and is available for purchase only once.
Who Filled The Lawsuit? What was the reason?
PoolTogether, a DeFi platform, is currently involved in a lawsuit that has “no merit,” according the team. Joseph Kent, the former technology leader for Senator Elizabeth Warren’s 2020 presidential campaign, is leading the lawsuit. After depositing $12 worth stablecoins into PoolTogether protocol in January, Kent filed a class action lawsuit against Leighton Cusack, the founder of PoolTogether, and the other associated partners. He claims that the platform promotes illegal gambling. He believes that it is important to have legal avenues to pursue crypto founders who cause real harm. Industry experts agree that his concerns are valid on the whole. However, PoolTogether’s lawsuit against him is frivolous. It undermines the fundamental principle of decentralization.
Cusack tweeted to try and address the issue.
Although the allegations are not substantiated, a solid defense is necessary. This can be quite expensive, especially for a small business like PoolTogether Inc. I cannot speak for the plaintiffs but I encourage everyone to review the court filings and draw their own conclusions.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, financial, investment, or any other advice.