ICO watch: sports car dealer Bitcar will ‘burn’ crypto after raising half of $25m target

July 23, 2018
53 Views


We don’t spam. Learn more about our Privacy Policy

Luxury car startup BitCar has revealed what you do when you initial coin offering doesn’t raise as much as you’d hoped.

The company, which is developing a Blockchain platform that offers cryptocurrency payments for fractional ownership of collectible car brands like Ferrari, launched an initial coin offering last year with plans to raise $25 million at the start of the year. 

Punters could buy BITCAR tokens, with the business aiming to be the main cryptocurrency used in the auto sector.

The Bitcar platform would let investors pay by cryptocurrency for a slice of luxury vehicles, which the business planned to buy on their behalf and then hold for around 15 years, until they appreciate enough to sell.

The Australian business set up in Singapore for regulatory purposes and raised $S6.5 million in its token pre-sale

Its public sale netted just under $S3 million – bringing the total raise to $9.5 million earlier this year – less than half of the goal.

One token was worth US10c. According to Coin Gecko, it was trading for AU1.2c on Friday.

Bitcar management told Stockhead the smaller raise amount saw the company re-assess.

“Due to the smaller raise, BitCar have decided to burn unsold tokens from the ICO –– thus reducing the circulating and total supply,” the company said. 

This means they’re essentially getting rid of the excess and improving the scarcity of the tokens they did sell.

The founders also said they planned to burn 50 per cent of their allocated tokens.

Despite the company not hitting the raise target, they’ve still got more than $9 million in cash and cryptocurrencies in the piggy bank to be used on developing their luxury car fractional-ownership platform.

Where are they up to?

“The BitCar Platform is currently undergoing development to be updated to a decentralised platform, users will be onboarded when the platform is live so we will be receiving metrics on user data then,” the company told Stockhead.

 





Source link

You may be interested

Why Blockchain Market is Thriving in Singapore
Blockchain News
10 views
Blockchain News
10 views

Why Blockchain Market is Thriving in Singapore

Editor - October 20, 2018

[ad_1] Why Blockchain Market is Thriving in Singapore  EntrepreneurFull coverage [ad_2] Source link

Fidelity Launches Crypto Services Company, ICO Study Reveals Terrible Returns: This Week In Cryptocurrency
ICO News
12 views
ICO News
12 views

Fidelity Launches Crypto Services Company, ICO Study Reveals Terrible Returns: This Week In Cryptocurrency

Editor - October 20, 2018

[ad_1] The cryptocurrency market finished a solid week on a high note on Friday, with most major currencies trading up…

Coinbase – A Strategic Analysis – Coinbase (Private:COINB)
Coinbase News
9 views
Coinbase News
9 views

Coinbase – A Strategic Analysis – Coinbase (Private:COINB)

Editor - October 20, 2018

[ad_1] Introduction Coinbase (COINB) and its digital asset exchange Coinbase Pro are the most well-known, established and trusted platforms for…

Leave a Comment

Your email address will not be published.