New Record-Breaker: Blockchain Startup Raised $4 bln Before Product Launch

New Record-Breaker: Blockchain Startup Raised $4 bln Before Product Launch

There is a new champion on the horizon. A blockchain startup has gathered around $4 billion this week, beating the record of the largest initial public offerings on world’s stock bourses. And that’s not all. Most importantly, it has gathered such an enormous sum without even starting out its project. This startup is Block.one, registered on the Cayman Islands.

Record-Breaker

According to CNBC, Block.one is financing its DLT platform called eos.ios with the help of ICO. The startup has managed to raise a multibillion-dollar amount. However, the investors still are not aware of how the largest part of the collected funds will be used.

As it is said in the report, lots of investors have piled into the project for two main reasons. Firstly, that’s because of the rage and, secondly, due to the constitutors’ pledge to repeat the success of their previous blockchain projects.

The startup doesn’t offer all its investors to get a stock-share in a company as IPO does. Instead, it runs an ICO, which provides such digital coin eos. The company gives out tokens, which use case is dependent on a pledge that the platform will be applicable in a virtual network once it is constructed.

When participating in the ICO, investors used ETH to swap them into fresh eos tokens instead of the US dollar.

As per the Token Report, there have been raised 7.12 million ether coins. At May 31 exchange rate data, an ether cost $576. Thus, in total, there were fundraised approximately $4.1 billion. However, this amount is not stable due to the fact that ether’s price changes and it definitely will when the ICO closes.

William Mougayar, a managing partner at JM3 Capital and author of "The Business Blockchain,” said:

"They have set the bar very high for themselves in terms of delivery expectations. Now is the time to not just deliver the coins but the technology with it."

Also, according to his words, Block.one is an anomaly. The largest IPO in 2018 was by AXA Equitable Holdings, as the company collected $2.8 billion. In the meantime, ADT gathered $1.5 billion, as per Pitchbook data.

Risks and Dangers

Interestingly, in "Last Week Tonight"-episode, released two months ago, the show’s host John Oliver mentioned eos in his speech, saying viewers should be wary about the “speculative” craze and jeopardies of piling into cryptos. The host also emphasized that the project has not even been set off yet. In particular, he said:

"It can be incredibly hard to tell which companies are for real. If you want a good example of this, look at Block.one, which has raised $1.5 billion."

Founders’ Promises

In accordance with Block.one’s constitutors’, the new system will support more effective operations for dApps. Hence, it will beat the already functioning platforms like Ethereum. Should the eos.ios succeed, it could leverage the adoption of crypto-related tech trend. However, CNBC emphasizes, they still have a long way to go as the product is released on June 1.

Despite anything, Mougayar said:

"This is the crypto world we live in. The eos founders have done a great job at marketing their technology, ahead of its delivery."

Any Other Successful Fundraises Apart From Block.one?

New Alchemy presented a list of other successful fundraises behind the record-breaker Block.one. And here are 10 of them:

  1. Telegram Open Network — $1.7 billion
  2. Dragon Coin — $320 million
  3. Huobi — $300 million
  4. HDac — $258 million
  5. Filecoin — $257 million
  6. Tezos — $232 million
  7. Sirin Labs — $157.9 million
  8. Bancor — $152 million
  9. Bankera — $150.9 million
  10. Polkadot — $142.4 million

Even though the launch of the Block.one’s project is risky, the amount that the company has raised indeed can save it.

Block.one has already mentioned it would spend $1 billion to attract more developers, whereas the rest of the funds will be used for lobbying serious regulators and making ties with banks.

What is a Security Token?
Security tokens became very popular, but do you really know what is STO?STO is Security Token Offering, which is identical to an ICO. In this, there...
1 in 7 Chinese Piled in Cryptos, Only 2% Not Familiar With BTC
Chinese are not only aware what cryptos are but they also gladly pile funds into them. The survey results are showing that 1 in 7 Chinese citizens...
WSJ: Bitcoin Trading at Strong Correlation With Traditional Assets
Within the past days, the ratio between Bitcoin and conventional assets markets has been high, writes the Wall Street Journal.What Are The...
Bitcoin’s «Dead» in a Long-Run, Says Young BTC-Millionaire
On December 17, on a day when a year ago bitcoin hit the all-time $19,000 record, the «big daddy» MarketWatch journalist, teen crypto-celeb Erik...
SEC Charges DJ Khaled and Mayweather for Misleading ICO Investors
The American SEC charges two celebrities for pumping up ICOs without letting investors know they were paid off for promotion. These celebs are a...
Crypto Venture Capitalist: BTC Investors Need to Endure As Amazon’s Did
Cyber money venture capitalist, CryptoOracle partner Lou Kerner suggested viewing bitcoin as a survivor like Amazon after 1995-2000 dot-com bubble...
Morgan Stanley Report Implies Bitcoin’s New Institutional Asset Class
A novel report from Morgan Stanley, the American multinational investment bank, states that bitcoin attracts more and more institutional investors...
Venezuelan Petro Available For Public Sale
After months of delay, Venezuela’s dubious cyber-coin Petro has entered the public market. On October 29, the state’s Economy Department informed...
Financial Services Giant Fidelity Launches Crypto Trading Platform
Fidelity Investments, a financial services titan with more than $7 trillion in client assets, has leapt onto cyber-money bandwagon too. This week the...
First Swiss Crypto Asset Management License Issued For Crypto Fund
For the first time in Switzerland Crypto Fund has been authorized to serve institutional patrons in the niche of cyber assets. The document which...