Lucky Polkadot (DOT) and Kusama (KSM) when they saw a price spike yesterday following the launch of a $ 30 million fund by Asian blockchain incubator, Master Ventures.
The venture capital fund (VC), known as the Master Ventures Polkadot VC Fund was launched to support and sponsor any tier 1 blockchain project that wants to win a Parachain slot in the Polkadot Relay Chain.
Not only that, Master Ventures also explained that the results will help launch early stage projects on the Polkadot and Kusama ecosystems.
Following that, DOT rose nearly 28% to $ 29.21 while KSM jumped over 39% to $ 511.91.
However, while analysts assume continued positive movement, both assets recorded slight declines at the time this article was written. DOT recorded a decline of over 6% with a current value of $ 25.29 and KSM traded at $ 425.3, a decline of over 8% in 24 hours.
The support and sponsorship from Master Ventures also actually demonstrated the firm’s need to purchase DOT and KSM to support the Parachain slot auction.
That way, Kusama and Polkadot will lock in tokens for as long as developers want their projects to run on parachains, a period ranging from 6 months to two years.
This means that the number of DOT and KSM tokens will increase according to the duration of the parachain slot, thus causing the total supply in the cycle to decrease.
However, if the opposite happens in the parachain slot auction conducted, there is the potential to see a price correction for both the assets.
