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Usha Yadav
Jun 1, 2022
by Usha Yadav

PoolTogether Uses NFTs to Raise 471 ETH for Legal Defence

PoolTogether Uses NFTs
The platform has already raised more than half of its goal, and the NFT funding campaign will expire in another 21 days. PoolTogether, a DeFi platform that bills itself as a "no-loss lottery," has earned 470.90 Ether (ETH) through NFT sales to fund its legal defense against a putative class action lawsuit.

PoolTogether is now halfway to raising at least 769 ETH (approximately $1.5 million) to fight a lawsuit it claims has "no merit." Before the NFT financing campaign concludes, the platform has another 21 days. On its NFT minting page, it stated:

"PoolTogether Inc. is a defendant in a putative class action lawsuit. A person deposited the equivalent value of $12.00 into the protocol and is now suing PoolTogether Inc. and others for substantial damages."

Joseph Kent, the former technology lead for Senator Elizabeth Warren's 2020 presidential campaign, filed a class-action complaint against the project, its inventor Leighton Cusack, and several of its related partners in January after depositing around $12 worth of stablecoins into the protocol. Kent claims that PoolTogether is running an illegal lottery in New York. According to an amended lawsuit filed in February, the platform "may never offer a positive expected value" since it keeps up to 50% of each weekly win as a reserve.

Kent is seeking compensation equal to twice the amount he spent on lottery tickets in PoolTogether and twice the reasonable amount of attorney's fees and legal costs. PoolTogether claims to be able to offer risk-free lotteries on stablecoin deposits by generating interest with the money of ticket buyers and liquidity providers using DeFi lending protocols. The lottery winner receives most of the proceeds, while the runner-ups receive a smaller portion. All other participants will be refunded in full. According to PoolTogether's website, the company presently offers weekly rewards totalling $80,436 across its V3 and V4 pools.

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ETH NFTs PoolTogether Legal Defence
PoolTogether Uses NFTs to Raise 471 ETH for Legal Defence
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.