ICOs Are Dead. IEOs Are Dead. What’s Next? FinNexus Has An Answer
On May 11, FinNexus debuts on Bitrue a new token distribution model for its FNX utility token.
The days of raising $40 million in an hour via the Ethereum network are gone. They will never come back again. Initial coin offerings, or ICOs, will never be the same. The more than 80% decline in the value of the ETH token since its peak in January 2018 is a testament to this new reality.
For long-term investors and workers committed to the long-term development of the blockchain industry, however, the extended “crypto winter” was treated as a welcome reprieve from the constant motivation to engage in short-term expenditures to prop up or “pump” the token price of a blockchain project. It was a time to take a step back, breathe in, and get to work!
An Experienced Blockchainer — CEO Boris Yang
For FinNexus CEO Boris Yang, the extended market swoon was a period of extreme productivity. As lead technical developer for Wanchain in 2018 and 2019, Boris oversaw some of the greatest advances in blockchain technology for a base layer infrastructure project. In that time, Wanchain built bridges to Bitcoin and Ethereum, as well as between Bitcoin and Ethereum, creating the world’s first truly interoperable cross-chain blockchain. Wanchain also made a significant change to its consensus mechanism under Boris’ watch, moving from Proof-of-Work to the sophisticated Galaxy PoS, an implementation of Cardano’s Ouroboros proof-of-stake system before even Cardano brought it to mainnet.
Now he has his sights set on starting his own cross-chain blockchain firm at FinNexus, a project that has its sights set on the very ambitious goal of cross-chain DeFi. During its incubation period, FinNexus has received startup funding from Boris’ former employer Wanchain as well as Southeast Asian fintech giant Superatom. They have since built a team of 7 developers and began working on various blockchain initiatives, the first of which is a game of chance related to cryptocurrency prices available now at Wandora Box or as a dapp inside the desktop light version of Wan Wallet available here. The second product is an asset tokenization platform that can mint real asset tokens on the XRP Ledger, Wanchain and eventually other blockchains. The third and final product, for now, is a fully decentralized method to mint Bitcoin option tokens.
Now he just needs to secure funding for those innovative new projects. And that’s what we’re here to discuss today. While the blockchain asset industry is moving away from funding the dreams of “two geeks and a whitepaper,” that does not mean that crypto-enhanced fundraising methods have gone the way of the Dodo bird. Projects that build real value with actual products can and should be funded.
As with any innovation that disrupts the status quo, sometimes a tweak here and there is all that is needed to unlock a whole new world of opportunity. A little creativity and innovation is all that is needed these days, as we just saw with the UMA Project and its Initial Uniswap Offering (IUO). FinNexus is offering its own little spin on the token-based capital raise, as you can see in this article by Cointelegraph:
FinNexus calls their new distribution model an Initial Convertible Token Offering (ICTO). In these times of extreme volatility, it may be a model that other projects look at to utilize themselves. Here is what FinNexus sees as the main benefits to the model.
Benefits of FNX Initial Convertible Token Offering
The conversion model presents four main innovations:
- FNX investors get a “second choice” after they receive their tokens. Should the digital assets market face uncertainty during the conversion period, one may choose to exercise a conversion right to have their entire principal and additional interest safely returned upon maturity of the UM1S token.
- FNX holders can tailor their holdings for the risk level that makes them comfortable. Risk tolerant token holders can choose to convert fewer FNX.
- The conversion mechanism balances the issuance of FNX in circulation. Converted FNX will be burnt, decreasing the total supply of FNX and allowing market forces to determine the FNX supply on the market.
- Lastly, the model combines the process of fundraising, listing and launch of the first FinNexus tokenized product, UM1S. Committing to this token distribution model demonstrates, from the start, the FinNexus philosophy of building protocols for real applicable products and down-to-earth use cases.
The basic idea is that blockchain investors at their heart are risk-weighing machines. They should be able to easily customize the amount of risk they want to be exposed to at any time during the first few months after committing tokens to a token-based capital raise. That is quite the contrast to the old way of doing things, wherein some projects have force their community to wait for months or even years before giving them such a choice.
Bitrue is a supportive partner in supporting these types of experimentations in token distribution models.
“Innovation has always been at the heart of Bitrue, from the introduction of our Power Piggy product that gives ordinary investors a chance to earn while they sleep, to our adoption of XRP as a base currency, we’re always on the lookout for new ways to bring value to our users. This conversion model is the next big step forward for us in this regard,” said Curis Wang, CEO of Bitrue.
On May 11, the FNX token distribution experiment begins on Bitrue. Click here to find out more!
About FinNexus
FinNexus was founded by Wanchain, a leading global public blockchain, and Superatom, an Indonesia-based fintech enterprise with high profile investors. FinNexus is currently building a suite of innovative layer-3 protocol clusters to link the emerging world of blockchain solutions with the dizzying array of legacy systems that manage the global financial services industry today. FinNexus protocols will enable the creation of many innovative digital assets based on both real world enterprises as well as decentralized ecosystems by removing entry barriers for the creation, listing, and discovery of tokenized assets.
Please visit https://finnexus.io/.
About Bitrue
Bitrue is a growing cryptocurrency exchange and digital asset management service disrupting the industry by adapting traditional financial services to newly emerging crypto markets. Launched in July 2018, Bitrue offers worldwide services to cryptocurrency investors with offices across the globe. Bitrue has a close relationship with Ripple, with whom they share a vision regarding the potential of crypto-assets, and has become one of the top exchanges within the XRP community. They now support over 50 XRP pairs and have become one of the top 3 exchanges globally ranked by XRP volume, owing to significant market share in English speaking markets and SEA. Bitrue is backed by strong communities and is quickly becoming the one-stop platform for crypto traders around the world with its latest addition of fiat purchases.
More information is at https://www.bitrue.com.
About FNX Token Sale
Important tweets: 1 | 2 | 3 | 4 | 5 | 6 |7 | 8
Press releases: PR Newswire | Yahoo! News
Bitrue FNX Landing Page
Bitrue Help Center Pages: 1 | 2
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