In a stunning return to crypto’s early fundraising roots, the upcoming stablecoin-centric Plasma blockchain raised $500 million in just five minutes through a public token sale. The initial coin offering (ICO) was conducted via Sonar, a newly started public sale platform backed by well-known crypto personality Cobie (Jordan Fish).

While the amount raised signals major investor interest, concerns have emerged over the fairness of the offering. Reports show that just 10 wallets acquired over 40% of the tokens, pointing to heavy participation by crypto whales. This concentration of ownership has trigger to debate on whether such ICOs genuinely democratize access or simply empower deep-pocketed entities.

Sonar start and Plasma’s Rapid ICO

The Plasma token sale took place on June 10, 2025, making it the first project to start on Sonar, the public token sale platform developed by Echo, another of Cobie’s initiatives. Originally capped at $250 million, the raise was doubled to $500 million after surging interest from investors.

Despite modern compliance tools and regulatory guardrails, the start echoed the wild-west dynamics of the 2017–2018 ICO boom. Within minutes, the hard cap was reached, with 1,111 wallets participating. However, the average deposit per investor exceeded $400,000, a figure skewed by whale entries, including one wallet that spent over 39 ETH (~$100K) in gas fees to push a $10M contribution through.

Whale Activity Raises Fairness Concerns

While ICOs are often praised for giving the public access to early-stage crypto projects, the data from Plasma’s sale tells a different story. The top 10 wallets controlled over 40% of the total raise, and some users appeared to gain early access to the smart contract before the vault officially opened.

Critics, including industry voices like the pseudonymous Alliance DAO partner “djma,” pointed to these actions as undermining the core value proposition of ICOs. “Only 1,111 people got in. Top 10 got 40% of the cap. ICOs are not solved,” djma commented.

The lack of transparency around priority access and the dominance of wealthy participants has reignited concerns from the previous ICO era, when many token sales were criticized for being controlled by insiders and venture funds.

Plasma’s Blockchain Vision: Tether-Centric and Ethereum-Compatible

Despite the controversy, the Plasma blockchain itself has generated massive interest. It is designed to support stablecoin-centric applications, including zero-fee Tether (USDT) transactions, a feature likely to attract both developers and businesses focused on payments.

Built with Bitcoin settlement while maintaining Ethereum compatibility, Plasma aims to bridge the worlds of legacy and next-generation blockchain infrastructure. Its hybrid design makes it appealing for developers familiar with Ethereum’s toolset but seeking Bitcoin-level security.

The project has already secured $27.5 million in private investments, with notable backers including Tether CEO Paolo Ardoino, Peter Thiel, Cobie, and Bybit. This backing, along with the broader momentum behind stablecoin regulation and infrastructure, helped position the ICO for success.

ICOs Making a Comeback?

The explosive success of the Plasma ICO may signal a revival of public token sales. While the ICO model fell out of favor due to regulatory crackdowns and scams, Sonar and Plasma show there is still demand—especially for projects offering early access to cutting-edge blockchain infrastructure.

That said, fairness and decentralization remain under the microscope. Critics argue that whales front-running the sale goes against the spirit of open participation. Others contend that institutional-sized investments are necessary for funding serious development.

Regardless, Sonar’s emergence as a modern ICO platform and Plasma’s rapid raise set a new tone for 2025. If refined and executed with more transparency, the model could represent a viable alternative to the heavily VC-dominated funding environment of recent years.

Conclusion

The $500 million ICO for Plasma blockchain showcases both the promise and pitfalls of public token sales in the current crypto era. Backed by big names and fueled by stablecoin infrastructure demand, Plasma has the potential to become a cornerstone blockchain in the coming years. But its token distribution, skewed heavily toward large investors, also reflects the persistent challenges of achieving equitable participation.

As more projects eye ICO-style fundraising through platforms like Sonar, the success of Plasma could become either a new blueprint—or a cautionary tale.