Initial Coin Offerings or ICOs have quickly become a powerful fundraising tool that is both more inclusive that traditional financing models and at the same time disruptive and complementary to them. For Blockchain startups it is a logical alternative and it has been embraced by several initiatives over the last couple of months. We look at the disruptive power of ICOs in general and, focusing on two recent examples, in more particular.
As the digital economy grows, cryptocurrencies have become one of the biggest central point of a new radical business and investing growing ecosystem. There is an emergent P2P economy based in cryptocurrencies, and with new business models such as ICOs, these companies create a new powerful concept of venture liquidity while at the same time establish and maintain a direct relationship with their community through crowd sales.
The disruption of the old model
William Mougayar the author of “The Business Blockchain” and a board advisor to, and investor in, multiple blockchain projects and startups has reflected on this subject and highlighted some powerful ideas. Mougayar argues that the traditional venture capital model is now being quickly disrupted, revolutionised by young innovative upstarts working with cryptocurrencies and blockchain tech. He sees the two models as diametrically opposed, the VC model being a closed market and the other as an open global market where anyone can play, and where the gains and risks are more evenly distributed.
According to him, this has led to a re-thinking of how startups who are operating in the blockchain space can raise money, and it has potential implications that will revamp the relationships that venture capital firms can hope to strike with these startups. He pointed out that as “an investor, advisor or board member, I have been closely associated with a variety of early stage companies that are tackling the innovation explosion around cryptocurrency and blockchain-based models, and have had the fortunate insights of seeing where we might be headed. Although in many cases cryptocurrencies tend to become speculative projects (and in some cases used for the wrong reasons), with limited real applications, the landscape is fast changing and there is some great cases of success of alt-coins for communities and tech players. The value of any currency is intrinsically tied to how useful it is, and how strong is the community it creates and serves, special when it comes to crypto-powered investing models. Both Humaniq and BOScoin are two cases of a leading innovation emergent blockchain cryptocurrency startup model.”
Humaniq and BOScoin: Two Blockchain CryptoCurrency Token Emerging Players
The two Blockchain startups Mougayar is referring to, Humaniq and BOScoin, are two emerging players that are taking the world with their innovation and bold approach based in digital innovation and ideas. Both of them use blockchain as default, and more specific Ethereum, the venture lead by Vitalik Buterin and both are trying to build meaningful tech for good and communities.
The BOS Platform from South Korea is about to launch with two ready-made apps Stardaq and Delicracy. These apps will use BOScoin as their primary currency, serve as channels for airdropping free BOScoins, grow the BOS Platform by attracting new users, and provide a platform for developers to create new apps.
Humaniq, is a blockchain tech for good platforms and a digital currency HMQ that was launched in 2016, reached more than $5 million in less than a month with its ICO that was traded by over 10.000 people. Humaniq DNA is both an ideas movement, a community, a currency HMQ and a financial inclusion blockchain Ethereum powered app that focuses on building a world where access to financial transactions is widely available to all people, particularly in undeveloped and developing countries. This includes the over two billion people estimated to be financially excluded. Humaniq is beginning as a blockchain banking application, which uses biometrics in place of traditional identification documents.
Collaboration rather than competition
Both startups have in common that they have or will use ICOs as an initial fundraising model, which however can be complementary to traditional financing models, and by doing so, embrace the powerful tool to further strengthen the relationship with the community they operate in.
In a truly global digital economy these two ventures want to leverage resources and knowledge through a partnership of the two startups. Working with BOScoin will make it possible for Humaniq to expand its reach in Asia. The same goes with BOScoin expanding its footprint and operations in Europe and USA together with Humaniq.
Through this partnership, Humaniq and BOSchain will be sharing strategic resources in both their different yet complementary mission statements. Through this new partnership the two organisations are also sharing knowledge in tech and ICO experience. Moreover, this partnership will support both organisations on building a network of tactical operations and footprints worldwide.
To find out more about BOScoin and Humaniq and their ambitious and exciting initiatives, head to their websites:
- BOScoin
- Humaniq