Sandeep Nailwal’s remarks follow claims propagated by Helius co-founder Mert, as he considered Polygon’s total investments compared to Solana’s.
Indian software engineer and co-founder of Polygon, Sandeep Nailwal, has responded to claims of Polygon using its investment funds to pay for company acquisitions and bribe people to use the chain. Nailwal’s remarks directly reply to the co-founder of Helius, a Solana-based startup, Mert Mumtaz.
Mumtaz Accuses Polygon of Paying for Brand Acquisitions and Partnerships
On Tuesday, Mert Mumtaz took to Twitter to point out that Polygon, which has total investments to the tune of $451.5M, has received 130M+ more funds than Solana, with $315.8M in total investments. Mumtaz further alleged that Polygon is using these funds to “pay people to use the chain and acquire companies” while Solana is putting its funds into developing the ecosystem, evidenced by the thousands of nodes on the network.
It bears mentioning that Mumtaz’s Helius labs are a Solana infrastructure startup that raised $3.1M in its seed round in October.
Polygon has received over 130M more in funding than Solana
Polygon uses the money to pay people to use the chain and acquire companies
Solana uses it to improve the tech and build the community and has *thousands* of more nodes
do with this information what you will pic.twitter.com/ZOG6vs63hR
— mert | Helius (🧱, ⚡) (@0xMert_) December 6, 2022
According to Mumtaz, he does not wish to launch a direct attack on Polygon but seeks to educate people on the “facts” to keep in mind when the community starts getting jealous of brand partnerships. Polygon is renowned for its numerous brand partnerships over the years, as several top entities look to the L2 chain for blockchain solutions. The Crypto Basic highlighted some of these partnerships in a report last month.
“It’s absurd that somehow Solana gets painted as the centralized VC chain while Polygon literally has 1) 10x the VC involvement, 2) has thousands of fewer validators, 3) can be stopped by the core team at any time, 4) still has much less TPS while being 100x more centralized,” Mumtaz added. He also highlighted a $50M investment by Alameda VC.
In response, Nailwal noted that Polygon comes from a humble background and would not even consider paying $20M for a project as it “scares” them. According to Nailwal, Polygon’s growing adoption by several brands is due to the power and pull of Ethereum and not money.
I've been ignoring these comments but lemme do it, not for the ecosystems who are feeling defeated & jealous, but for @0xPolygon community.
– Polygon comes from a humble background, even thinking of paying $20mn for one project scares us😂
Tho, I wish we had this much surplus https://t.co/MhbRK9sqcX
— Sandeep | Polygon 💜🔝3️⃣ (@sandeepnailwal) December 6, 2022
Nailwal debunked the assertion that top brands would choose to collaborate with a blockchain solution only for some “petty cash,” noting that these entities are seeking to build on Ethereum and hence turn to Polygon as the easiest channel to access Ethereum. According to him, these brands would rather pick Ethereum than some “half-baked L1s,” and Polygon allows them to use Ethereum.
He further stated that his comments do not mean Polygon would not like further strategic partnerships, but they will not pay millions for those collaborations.
“This next post is absurd, especially being said by an ecosystem that goes down monthly and restarted frequently and is unusable every week. At Polygon, check who all are validators; we can’t force them to upgrade; the community has to coordinate,” Nailwal remarked, speaking on Mumtaz’s comments on Solana having much more validators than Polygon.
Furthermore, Nailwal disclosed that Polygon’s private sale valued the firm at $8B+, which means that venture capitalists own an estimated 5% of the asset’s total supply. He further noted that Polygon’s BD cost is significantly low compared to its success regarding brand partnerships and adoption. Nailwal noted that his responses were not to entertain Mumtaz but a necessity for the Polygon community.