ICO MARKET UPDATE :: 27 March 2017

Blockchain Capital announced the details of its upcoming BCAP token offering on March 16. Brock Pierce, Co-Founder and Managing Partner of Blockchain Capital, speaking at the Chamber of Digital Commerce’s DC Summit in Washington, D.C., announced the highly successful Fund’s intention to disrupt the Venture Capital industry through creating the first of its kind “Digital LP” investment vehicle. The new vehicle will democratize the Venture Capital landscape by offering a level playing field between institutions and individuals in VC, while offering significant benefits. Key benefits for individual investors include: exposure to top tier companies in the blockchain industry, lower barriers to entry, flexible investment period, and liquidity, amongst others.
The offering is targetting a $10m raise and will be one of the first ICOs to be done in compliance with US securities laws. The Token Offering will be conducted via The Argon Group’s proprietary issuance platform, TokenHub, with the offering memorandum published on April 3 and bookbuilding starting on April 10. More details are available at blockchaincapital.tokenhub.com.

In the meantime there have been several interesting successful ICOs:
Qtum managed to raise $15.6m during 5 days in its ICO offering period, becoming the fourth most-funded cryptocurrency crowdsale and the eighth most-funded crowdsale of any kind to date. The first $10m was raised in just 90 minutes, despite controversy around the project that stemmed from the fact that one of Qtum’s founders, Patrick Dai, was involved in the Bitbay scandal back in 2014. Instead of selling tokens through a single source, the company engaged six, mostly China-focussed cryptocurrency exchanges and crowdfunding portals (Bizhongchou, Yunbi, ICOAGE, Allcoin, ICO365, and BTC9). Qtum is building a smart-contract compatible blockchain with a business focus that can natively run on both Bitcoin-based and Ethereum-based applications.

Edgeless, a decentralised casino on Ethereum, completed its ICO on March 21, raising c.$3m in total. The book was open for approximately three weeks. Edgeless has not secured the listing of its tokens on any exchange prior to the ICO offering period end.
Other ICOs closing during the week of March 27 week include Chain of Points, a platform for creation of customer rewards, and Equibit, a P2P electronic equity system. Interestingly, Chain of Points will be one of the first blockchains to feature automated Ricardian contracts — contracts that are readable by a human and compilable by a machine, such that both machine and human agree on how to execute the contract. The ICO has so far generated little momentum, with only c.10BTC raised to date. Equibit has so far raised c.$500k, almost no progress from over a month ago. The ICO closes on April 1.
The next two weeks will see several interesting ICO launches. These include:

  • SuperDAO, a decentralized governance system for Dapp ventures, commences its offering on March 27
  • TaaS, a hedge-fund investing in crypto assets, also starts its ICO on March 27 and is targeting a c.$101m raise
  • Lunyr, a decentralized encyclopedia on Ethereum with a for-profit business model, starts the ICO on March 29. The book will be open for approximately one month
  • Cosmos, a network of distributed ledges, also starts its ICO on March 31
  • Matchpool, a decentralized dating and matchmaking protocol, rescheduled its ICO which will now commence on April 2, targeting a raise of c.$5m. The company cited the need to conduct further testing on the smart contracts, and to allow time for external review as a reason for postponing
  • Aeternity, commences an uncapped sale on April 3. The “Friends, Family and Real Innovators” ICO will be open for 72 hours only, and will be followed by a wider offering targeted approximately two months later. Aeternity is building a new smart contracts platform that will allow to unlock the Internet of Value and empower people with hedging and insurance applications
  • Blockchain Capital intends to publish the offering memorandum for the BCAP ICO on April 3, with bookbuilding commencing on April 10. The offering is capped at $10m.

We are the Argon Group: the only technology-first investment bank focused exclusively on the digital finance sector — the emerging crypto-currency and token-based capital markets. We provide financial advisory, placement, and technology services to companies seeking to raise equity, debt, and non-dilutive capital. For ICO advisory contact us via info@argongroup.com