For the first time, the tech industry is appreciating the possibilities of raising funds through cryptocurrencies such as bitcoin and ethereum. The idea is to race money using the initial coin offerings and we are going to see the first ICO from a major VC- backed company. This has raised interest in the Bitcoin market for investments as well.
One of the popular messaging app in the North America, “KIK” had earlier announced the ambitious plan to launch its own currency with the help from the developer community. KIK has been able to raise up to $120 million from investors till this date. However, the Thailand-based startup “Omise” is looking to change all of that through its cryptocurrency sale plan.
Omise is a messaging app prevalent in Japan and Southeast Asia and has till now raised $20 million from various investors. However, now it wants to tap into cryptocurrencies and the blockchain as its next strategy moved to raise funds for its growth.
The startup is looking to raise $19 million through the sale of its own coin which, it has named Omise Go. This will enable the startup to raise money from investors without the need of a bank account or service fees.
Moreover, the core vision is to increase the financial inclusion in the emerging markets. This will create a platform enabling other companies to go beyond the traditional means to raise funds for their company development.
Bloomberg has already done a story on the intentions of the startup to hold its own ICO. Previously, the company had declined any release date, however, the news is out and the expected sale of the coins will take place on June 7.
The proposal is to sell 65% of all coins during the first day of the sale. After the first day of the sale, the company will release 20% of the remaining coins for future expenses. Remaining 10% of the coins will be issued to the company’s team members. The remaining 5% of the coins will be distributed amongst the people who already own Ethereum Ether coin.
The ICO’s have been able to raise $180 million in the year 2016. In the current year, the companies have been able to raise up to $101 million till now.
The cryptocurrencies are proving to be a great aid for those who are looking to raise funds without the help of the traditional route. It is again a good step for the fintech companies and the ecosystem of financial Technologies which enable such activities without the need of bank accounts and high services fees.