Blockchain Startup Raises $4B Without a Product

by StartupWorld Staff         

A Cayman Islands-based blockchain startup just raised a whopping $4Billion through the sale of its digital coin, EOS. The surprise that will hit you is its first flagship product is yet to air live. It is set to be the world's largest IPO (Initial Public Offerings) in 2018. Through ICO (Initial Coin Offering), Block.one is funding eos.ios, the startup's blockchain platform. And unlike an IPO, which gives investors stock ownership in a company, an ICO gives out tokens whose use case is based on a promise the platform will be useful in a digital network once it gets built. (Taken from CNBC News, Author: Kate Rooney). In exchange for new eos tokens, people who participated in the ICO used ether (cryptocurrency), instead of U.S dollars. This investment indicates that the investors seem pretty confident about this startup since their trust alone explains their decision to make such a huge investment prior to live product inspection. The reason also includes the fact that the founders of Block.one have previously launched blockchain projects which proved to be successful, and the investors are wishing that that phenomenon continues to be the same. But everyone is still in a dilemma when it comes to how the startup will use the raised capital.

The new software system eos.ios that Block. One intends to use has its first live version release date set in June, which is apparently going to make operating easy for decentralized applications, and also assisting to make digital currency technology more accessible and widespread. But you won't see the startup working on this software as they don't as they do not intend to operate a public network. Therefore the company expects others to come forward to do it and is willing to give $1Billion to the startups involved in building EOS.

As of Wednesday night, the fundraising scraped together in total ether a sum value of 7.12 million. Based on the U.S dollar exchange rate on Thursday, one ether constituted to $576, which is equivalent to nearly $4.1 billion.

Source: CNBC News


4.3/5

135 Reviews

Your rate 3 stars is recorded

About Author

StartupWorld Staff

StartupWorld is the destination to learn about new and upcoming startups making waves on the web. Being an entrepreneur is as much hard work as it is fun. No one knows it better than you do. Share your story, send it in and let us showcase it to the world.

Comments ()

Leave a Comment