In 2017 startups were able to raise $5.6 billion using ICOs (Initial Coin Offerings.) Thats up from $240 million raised in 2016.
ICOs have rapidly become on most popular ways for early stage startups to raise funds.
In fact in that same year only $1 billion was raised for blockchain companies using traditional venture funding.
Now imagine the impact if the process of raising funds through ICOs was so simple that almost anyone could do it. What’s more setting up and running an ICO could be easily done from anywhere in the world.
That’s the vision of decentralised crowd funding platform CrowdCoinage. This new blockchain enabled platform plans to make it much easier for startups to raise capital and for investors to safely contribute their capital.
This will include not only the ability to raise funds using an Initial Coin Offering but also to access capital through other innovative methods include decentralised P2P loans.
Initial Coin Offerings haven’t been the only way that technology has transformed raising funds. Another innovative way of borrowing capital is Peer to Peer (P2P) loans. By borrowing directly from a community it is no longer necessary to go to a traditional financial institution like a bank in order to get access to capital.
P2P lending sites have already proved popular with the fiat financial system. Prosper and Zopa are two of the leaders in this market. By 2024 it is predicted that that the P2P market will be worth $898 Billion.
CrowdCoinage wants to take this next level by using the benefits of smart contracts and decentralisation. This would help to address some of the challenges that the P2P industry currently faces including transparency and assessing borrowers suitability for a loan.
APIs can be used to automatically connect with credit bureaus. Rating systems can be integrated with smart contracts to assess if the borrower has followed the payment schedules for previous loans.
This should in turn help to improve the time it takes for a loan to get approved. Decentralisation would make it easier for people to both borrow and loan funds no matter where they are located in the world.
Initial Coin Offerings (ICOs)
CrowdCoinage has carefully looked at the current ICO industry and looked for points where the process can be simplified and made more secure.
One of the big problems with the current ICO industry is that there is very little to incentivise startup founders to hit the goals that they state when raising funds in their ICO.
CrowdCoinage would address by locking funds raised in an ICO in a smart contract. Funds would be released in stages. These funds would only be released when the crowd of investors votes that the startup has successfully completed the previous stage that they have set for themselves.
CrowdCoinage will also make the ICO process easier from the startup side as well. It will enable investors to setup an ICO from anywhere in the world. This is because of Estonia’s e-Residency program. Startup founders can apply to the program. Once approved they will be able to setup a company and open a business banking account completely online. Location will no longer be an impediment to running an ICO.
CrowdCoinage Token Sale
CrowdCoinage will be launching its own token sale starting on 15th of January 2018. There will be a hardtop of 150,000 ETH for the entire token sale. The token distributed during the token sale will be CCOS. Each CCOS is being priced at 1000 CCOS is equal to 1 ETH, with a 30% bonus for the first two days of the resale. You can find out more information about the token sale by visiting:
CrowdCoinage Website: https://crowdcoinage.com/
CrowdCoinage Whitepaper: https://crowdcoinage.com/static/CrowdCoinage-Whitepaper.pdf?2018-02-14