There’s been a lot of talk about ICO (initial coin offerings) business fundraising events. All due to the sale of cryptocurrencies, but not a lot in the way of action until recently. That’s when former Mozilla CEO Brendan Eich, creator of web browser Brave, raised $35 million from its ICO in less than 30 seconds.
The thing is, that ICOs run by selling investors crypto currency. You can use it to stock up value in many ways, not only as traditional share. Brave produced its coin for its sale – The Basic Attention Token (BAT), also known as BAT. She sold one billion of them that brought her over $35 million. An additional there is 500 million BAT for user development and growth. She isn’t planning to sell another token in the future.
The ICO is the highest grossing to date in IT sphere
Another company followed Brave’s steps and took the same approach. That is a popular messaging service – Kik. They just announced plans for its own coin -‘Kin’ – which is a virtual currency for paying for related services and goods. It plans to use BAT – special currency for its marketing system. Also, it claims that it can decrease the level of ad fraud and boost efficiencies for advertisers and publishers. As well it is assessing the probable micro payments for buying digital goods with BAT in the prospect.
Brave’s pitch was great and well-planned because it gave something new. It provides consumers with tighter privacy controls, quicker loading times and even the perspective to make money simply by reading content.
There is a great anecdote situation of the Brave ICO. It is about how a handful of individuals were dominating in the process of its creation. Only roughly 140 people bought BAT because there was one buyer who scooped up $4.6 million of them (worth of 20,000 ETH). In general, only five buyers owned half of the entire haul, as the 20 main spenders bought two-thirds of the offered coins.
A vital component
That situation runs counter that token sales are permitting anyone to take rights to own parts of the companies they use or follow. For sure, larger, more organized investors — including early moving VC firms or brave corporations — are a vital component. Especially, when a company is selling millions of dollars in coins. But ensuring that there is space for smaller parties as well, is going to be an ever significant challenge. As nowadays ICOs become more ordinary in the market.
Aside from Kik that didn’t give any a specific date, payment firm based in Asia -Omise is planning to raise just under $20 million from a token sale. Such companies are leading in the business as the phenomenon begins to find interest among a venture-backed and more established tech companies.
Sometimes you just need to take a risk, think creatively and believe in yourself. With hard work and patience, your new start-up will achieve success and bring great revenue.