ICO MARKET UPDATE:: 30 May 2017

Amongst many exciting announcements during the conference week in New York (including a Token Summit panel appearance by our General Counsel), a great deal of interest was raised by Civic’s pre-announcement of its upcoming CVC token sale at the Consensus conference, followed by a more detailed presentation at Token Summit.
 
Civic has existing venture capital backing and already has a working product: an on-demand, secure and low-cost identity verification service utilizing blockchain technology. Civic’s product is internationally well regarded and won Best New Startup award at the K(NO)W Identity Conference 2017. The CVC token to be offered in the token sale will be utilized in the Civic’s ecosystem for identity-related products and services provided by Civic and third parties through the Civic ecosystem. For orders over $50k there is an opportunity to pre-fund in order to guarantee the allocation. The token sale will open to the public on June 21. The Argon Group is advising Civic on the token sale.
 
Kik, also announced at Token Summit its intention to launch its own cryptocurrency called Kin. Kik runs one of the prominent mobile-based chat applications and Kin will be an ERC20 token based on the Ethereum blockchain. Kin will also act as a payment method within the chat application and a c.$100m ICO of the token may follow. Kin is one of the first examples of a non-blockchain company deciding to create its own cryptocurrency.
 
Storj, a decentralized cloud storage platform, has successfully completed its $30m token sale within 7 days on May 25, making its token sale one of the largest to date. Participants of the token sale will receive STORJ tokens and will be able to exchange them for cloud-based storage space within the Storj ecosystem. The Argon Group advised Storj on its token sale.
 
MobileGo, an extension of the Gamecredits gaming store and mobile platform, was another large successful crowdsale completed in recent weeks. The sale raised $53m, in part driven by strong cryptocurrency appreciation in the last few days of the token sale that was completed on May 25.
 
Aragon, (not to be confused with the Argon Group!) claims to be building a platform and digital jurisdiction for creating and managing DAOs and manage to hit its hidden cap of 275k ETH (c.$25m at the time of pricing) within 26 minutes on May 17 despite no product to market. The ANT token was positioned as a use token (as opposed to a security type token), but many industry observers are skeptical of whether that was actually achieved by the ANT token structure. In what is becoming another trend that concerns many industry observers, 70% of the tokens were allocated to token sale participants, 15% was kept by a foundation and 15% was granted to founders and early contributors under a vesting schedule with a 3–6 months cliff. 2,403 investors participated for an average order size of c.$10k.
 
Bancor postponed its token sale to start in early June, in order to finalize some of the organizational details. The project is building strong momentum and considerable interest from sophisticated investors.
 
Other token sales in the market or launching in the near term include:

  • Aeternity, a scalable smart-contracts platform, launched its second crowdsale on May 29. The uncapped sale is schedule to run until June 19.
  • Mysterium, a decentralized VPN service built on blockchain, starts its token sale on May 30, targeting a raise of CHF6m. This it the second token sale for Mysterium, which has raised $100k in December 2016 via a pre-sale.
  • Tezos, a self-amending crypto-ledger, postponed its token sale to early June, citing additional work that needs to be done in connection with legal structuring.

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