Zero Carbon Project reconfirms continued seed funding until the crowd returns

Zero Carbon Project plans to raise funds through a series of IEOs (Initial Exchange Offering) and ICOs once the crowd returns to the market. However, there is insufficient evidence to suggest that there is sufficient demand at the moment or that interest has returned for token crowdsales.

In the meantime Beond reconfirms their commitment to providing seed funding to Zero Carbon Project.

IEOs and ICOs

IEOs are public token sales run across a third party software platform. They typically also provide the pre-sale KYC checks and their own investor community as participants, along with listing the token on the subsequent secondary market. They are a development on ICOs which in theory were run by the fund raising Project using their own token sale smart contract.

IEO platforms have been around for a while. In fact we were accepted onto the Gibraltar Blockchain Exchange GBX GRID platform last September 2018 but we are holding off on launching our crowdsale until demand for token crowdsales returns. The term “IEO” emerged in the last few months following the launch of platforms by Binance, Huobi, Bitfinex and other popular crypto exchanges.

We decided to research IEOs as a new channel to crowdsell our ZCC utility tokens. This followed an upsurge in interest in IEOs and a belief within the crypto community that token crowdsales had taken off again across these new platforms.

Analysis

The table links below shows that $1.1 billion was raised in May, up from $155m in April, compared to nothing formally reported in previous months.

However reading behind the headline shows that the $1.3 billion was mainly a $1b raise by Bitfinex who have an interest in reporting a fast increase in aggregated IEO values. Another $200m come from the next 9 largest Projects shown in the following links

https://www.coinschedule.com/stats/IEO?dates=Apr%2001,%202019%20to%20Jun%2004,%202019

https://icobench.com/reports/IEO_Report.pdf

These Reports, along with the following articles, suggest that there is insufficient evidence to suggest that the crowd has returned to invest in blockchain projects.

See these articles on the Bitfinex sale, including one before completing their token sale https://www.coindesk.com/bitfinex-token-sale-has-lined-up-1-billion-in-commitments-shareholder-says .

Also see the following article published after completing the Bitfinex token sale https://www.coindesk.com/bitfinexs-private-token-sale-raised-1-billion-in-10-days-exec-says

The second largest EIO for Thunder Tokens reportedly raised USD50 million from 26,472 participants using Huobi Light platform https://www.prnewswire.com/news-releases/33-million-thunder-tokens-sold-in-huobi-prime-lites-inaugural-launch-300847442.html

There are no press release or information on the third largest USD30m fund raising by Windhan Energy from Estonia.

Conclusions

Based on this analysis and behind the scene discussions, we don’t believe that the token crowd sale market is ready for a large public fund raising. However IEOs will be useful channel to market if the platforms can provide their own community with interest in participating in public token sales.

Fund Raising Plans

Our current thinking is to wait until the crowd returns and focus our attention on building out the Zero Carbon Markets and token economy. In the meantime, Zero Carbon Project parent Beond has committed to continue funding development of the Project.

When the crowd returns we may test the water with a small token crowdsale followed by a series of other small token sales. The first token crowdsale may offer a deep discount compared to what our Zero Carbon Coins are trading at on IDEX at the time. We will test our community first with a request for commitments.

This initial token crowdsale may then be followed by a series of rounds with reducing discounts.

We may lock the tokens up in escrow to be released when our token economy grows to a self-sustaining levels of demand in order to absorb the increased circulating supply of Zero Carbon Coins. We may issue ZeroCarbon Escrow Tokens which may be traded on a decentralised crypto exchange and used to release ZeroCarbon Coins once the token economy demand growth targets have been met.

In the meantime, we will continue with our private pre-sale which is available to accredited investors www.zerocarbonproject.com/token-sale/

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