FinTech Startup Raises $53 Million With ICO

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ICOs are already booming in the business world, but the real extent of their possibilities has only just been presented with one Australian company raising 21,000 Bitcoins worth of capital.

HCash, a blockchain security startup, closed their ICO round on July 15, 2017 with 21,000 Bitcoins. That day’s exchange rate has those Bitcoins worth $53 million. Today, HCash’s electronic tokens in circulation currently sit with a value of about $33.7 million total. This compares to Perth energy trade tech company Power Ledger’s $34 million ICO, which was announced last month.

If you still haven’t caught up, ICOs involve a startup selling electronic tokens to buyers who see some potential in the business. The value of the token increases with the number of buyers, but unlike traditional venture capital, the token buyers aren’t given any ownership of the company.

ICOs will only continue to grow in the public spotlight, especially after the boom of ICO-born cryptocurrencies Bitcoin and Ethereum. A great, quick way to invest in a high-growing startup, ICOs even have celebrities like Paris Hilton and Floyd Mayweather interested.

Despite this boom, many financial experts warn that there isn’t enough regulation for ICOs, allowing buyers to potentially be misled. The Wolf of Wall Street himself, Jordan Belfort, says “cryptocurrency is the biggest scam ever”.

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