The DOT token purchase move from Deutsche Telekom AG, seen as Europe's largest telecommunications company, came a few days after the launch of Polkadot Parachains, and the company is now starting to build the infrastructure to become a Polkadot validator.
DOT, which is the 11th largest cryptocurrency in the list ranked by market value, has increased in value by close to 6 percent in the last 24 hours. In addition, DOT/USD, which entered a downtrend after peaking at $55 at the beginning of November, fell to the $23 band on December 20.
Deutsche Telekom announced the details of its investment in Polkadot, developed by Garry Woods, one of the founders of Ethereum.
While Deutsche Telekom AG provided infrastructure support to Chainlink, which previously offered blockchain oracle solutions, it also worked with Dapper Labs, which operates in the NFT sector, and Celo, the mobile-oriented DeFi payment network.
Deutsche Telekom has made its claim in the blockchain space by investing in Polkadot. It has been announced by the company that T-Systems will not only provide node infrastructure to users who stake their assets on the Polkadot network. The company also noted that significant purchases of Polkadot native tokens DOT have occurred.
Andreas Dittrich, head of Deutsche Telekom Blockchain Solutions, stated that Polkadot will be the fourth blockchain network Deutsche Telekom will operate, but T-Systems will run several validators for the Polkadot network, both private and public, as a first.
Andreas Dittrich, in an interview on the subject, stated that they invested in Polkadot token DOT to participate in network management, and said that this should not be seen as just a venture capital investment. Dittrich added that they want to create a new business unit with this investment.
Although Deutsche Telekom announced its investment in Polkadot at the end of 2021, it is known that the company has been working on the Blockchain network since last year. Telecom company, which closely follows the Polkadot network, announced its support for the Blockchain network after Parachains went live this weekend.
Polkadot network, which has become more active with the implementation of parachains, currently serves as a platform for decentralized finance (DeFi) applications, stable crypto assets and Ethereum compatible protocols. Projects will be able to work as a layer 1 solution on the Polkadot network, which can be thought of as layer 0.
The investment made by Europe's largest telecommunications company in the Polkadot network and seeing it as a new business unit is seen as an important development. In addition, the platform's native token DOT changes hands for over $25 today.