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Friday, June 9, 2023

PoolTogether Manages To Raise 471 ETH Using NFTs

PoolTogether, a platform for decentralized finance (DeFi) that is apparently also a lottery with no risks, has sold nonfungible tokens (NFTs) to raise 470.90 in Ether (ETH) to pay for its defense in a legal court in the face of a possible lawsuit for a class action.

This implies that PoolTogether is past its midpoint to the target of getting a minimum of 769 ETH. When the article was written, this amount was worth about $1.5 million. This is all to fight a lawsuit it says as having “no merit.” There are still 21 days left until the founding campaign involving NFTs is over. On its page about making NFTs, it said something like this:

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PoolTogether Inc. is being sued as part of a possible class action. Someone put the equivalent of $12 into the particular protocol, and now they are filing a lawsuit against PoolTogether Inc. as well as others for a lot of money.

Joseph Kent is in charge of the lawsuit for a class action. He was in charge of technology as part of Senator Elizabeth Warren’s presidential campaign in 2020. Ken became active opposing the project, Leighton Cusack, its founder, and a few of its partners back in January after he put about $12 worth of stablecoins into the protocol.

Kent Says PoolTogether Was Running An Illegal Lottery

In an updated February complaint, Kent alleged PoolTogether is running a lottery that is illegal in nature in New York. He also adds that this platform might never return an expected value that is positive because it keeps nearly half of every weekly prize in the form of a reserve.

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Kent wants to be paid back twice as much as he gave to buy the lottery tickets through PoolTogether and twice as much as a reasonable amount for attorney’s fees and court costs.

PoolTogether says its lotteries have no risks for stablecoin deposits on its platform. It does this by using the capital of ticket buyers and liquidity providers to make interest via the lending protocols of DeFi.

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