Peliqan’s choice to fund through blockchain
Peliqan has, until now, had the benefit of developing the product, the business and community under a first round and collaboration of angel investment. This enabled us to speed everything up and got us the platform, built from scratch in under 8 months of development.
With the product already launched, deeply tested and perfectionised, Peliqan is ready to expand the product. First of all through all the streets and canals of Amsterdam, but soon also to the rest of Europe. As in any industry, growth means more investment needed to establish the name of Peliqan in new places.
This process of growing a business and raising funds can be approached in multiple ways. The trick is to expand in a way that is not only fast, or with the highest funds raised, but also in a way that reflects our core business on the long term. This is where we decided a conventional way of fundraising can help us grow and move forward, but does not reflect our core concepts and beliefs. Peliqan was built to be a decentralising and democratising product in the industry and we believe, that by raising funds through big, centralised institutions, we forget too much about what drives us. Nevertheless, they can play a major role in our development as a company, shaping our network and growth challenges.
The discovery of the potential possibilities of blockchain technology made us realise there are other, alternative options to raise funds. Ways that fit our approach way more than the ‘old-fashioned’ ways. The ICO mechanism got us overthink not only our funding methods, but our whole businessmodel. As we realised a token would enable us to build various new products that were not possible before. After extensively investigating multiple token structures and their tokenomics, we decided creating a utility token and set up an ICO wouldn’t support our business, as we believe a utility token should only be created if the product is truly a utility token and nothing else, which isn’t the case at Peliqan. More importantly though, was the belief that a fundraising could now be both more decentralised and more democratised than ever before. We feel funding through blockchain lies within the extension of our own business and suits Peliqan as a company. Using the power of the crowd does not only mean we can now distribute the platform to more people, but it also means we will have a crowd behind us supporting us, keeping us sharp and provide us with feedback when we need it.
This mechanism enables us to invite our users, clients and other entities currently active in our community to not only use the platform, but become co-owner of it.
The future of funding
As we got deeper into blockchain technology and its possibilities to fund our business, we automatically started to discover the developments within the world of funding. Whether or not the crypto market is in a bull (or bear) market, the fundamentals of blockchain make it extremely likely that we will be distributing, managing and trading all kinds of assets through blockchain in the future. The application of an ICO was an important step towards a future in which our assets are no longer controlled by brokers and big institutions, but by a business and its community. Despite the success of the ICO as a concept, most people in the industry expect there is just a small amount of ICO’s with a truly revolutionary product based on a utility token that’s actually a genuine utility. Besides that, Many scams have taken place and as a result of this, regulation is becoming more and more strict.
A new concept that’s awaiting its entrance to industry-wide adoption is the STO, or Security Token Offering. The idea behind an STO is somewhat the same as an ICO, but with a token that actually represents value in the ‘real world’ (read our what is an STO blog for more background). At Peliqan we believe that the concept of an STO will be one of the next big applications of blockchain technology. The blockchain is very well suited for distributing and managing assets, and thus, for distributing tokens representing equity. Combining this principle, with the possibility to let your community join the journey of your fundraise, exploitation and (first) profits, an STO will be our way to fund the business.
We realise that with the choice to be pioneering, rules and regulations can be vague and risks can be high on our side. When we started with the development of this structure almost a year ago, there was little to no information available about STOs. We set up a structure from scratch and have been developing this structure over the last months. However, one of our first findings was that in the case of an STO, things are a less complicated then most people currently expect.
We simply apply all existing regulation about distributing equiy to our tokensale and aftermarket. This includes quarterly reports, dividend sharing and KYC/AML. Exchanges are building security applications as we speak and are very open to conversations about the issues security tokens will face.
In conversation with exchanges, institutional entities and more key stakeholders, we’re reaching a point at which everything falls into places. We are not afraid to say our structure will work and will set a high standard in European STOs. Our goal here is not only to conduct the STO itself, but to structure it in a way enabling every business to easily apply it and register their equity on the blockchain.
In the end, we are proud to say we are one of the first projects running an STO through blockchain. We try our best to be a good example for the industry, so others can apply our set-up themselves and scale-up their businesses.