While several blockchain start-ups are plotting and working on extensive strategies to execute successful crowdfunding exercises in the form of Initial Coin Offerings (ICOs), long serving blockchain-enabled payment gateway, Cryptopay is rather demanded by its customers to launch one.
“Currently, the company is stable and profitable, so there’s no actual need for money from ICO, but we have received a lot of requests to make one,” says George Basiladze, CEO at Cryptopay.
“It is a good opportunity to make an honest and transparent ICO that unlike any other is based not only on the white paper but on products that already work. We know the market, we know the audience, we get things done. That’s a promise,” he added.
A Novel Method of Crowdfunding
Decentralized unregulated crowdfunding has become a very popular method for companies, especially the blockchain-based ones to raise funds for capitalization of expansion. It also represents a convenient way for investors of all classes across the globe to benefit from investments that hitherto have been beyond their reach.
The Cryptopay’s Public ICO has already been launched today, October 2, 2017. The stage 1 of the ICO has a 10% bonus, and will finish tomorrow.
Cryptopay is one of the longest running bitcoin and blockchain companies. With an end-to-end solution to purchase, manage, and use crypto offering customer wallets, exchange services, merchant processing and crypto cards, there are not that many companies with a working and scalable product like that of Cryptopay within the industry.
An Ongoing ICO Scrutiny
Coming at a time when the ICO topic is redhot across the crypto ecosystem, especially with the Chinese ban of such exercise within its borders, it has become common for any upcoming ICO to be thoroughly scrutinized by intending participants.
The tokens of a given start-up or organization represent the primary tools needed to access and operate within the immediate community of that organization. Therefore, investors who wish to participate in an ICO may do so to gain operational access into the given platform and also for purposes of speculation.
A lot of crypto investors who purchase tokens of a product do so in anticipation of a future increase in value of such tokens. However, the value of a token in the crypto world is organically dependent on the rate of demand for such tokens by users who continually seek to gain access and operate within the community where the token is employed.
Why the Public is Demanding for an ICO?
The claim by Cryptopay of requests by users for a token sale may be linked to the suggestion of existing viability and anticipation of increased demand in the future by these users. Hence, their desire to benefit from the progress of the company.
Explaining the expansion plans of the company, Mr. Basiladze notes that most of Cryptopay’s current roadmap is in stealth mode whilst they gear up to launch the best possible services for customers.
According to Mr. Basiladze, the Cryptopay gateway will be adding multiple crypto assets such as Ethereum, Ripple, Litecoin among other cryptocurrencies. This will in turn allow the company to offer a multi-asset debit card, which will continue to increase the fungibility with our customers.
It is quite uncommon to find a situation where an organization’s crowdfunding is initiated by customers instead. What is popular in the industry is the direct opposite.
This is the basis for the ongoing suspicion of fraudulent and unguided fundraising exercises by insincere organizations. It is this suspicion that has given rise to the recent market volatility that was triggered by action taken by the Chinese government against ICOs.
Brighter Days Ahead for the Industry
However, Basiladze notes that his company is looking beyond the present state of the industry and is already working towards the future promise of the payments and financial services industry.
“The future is very bright when it comes to payments and financial services overall. For decades we have been working with legacy antiquated systems and have come to a point now where it’s not efficient to continue,” says Mr. Basiladze.
He continued: “Blockchain has come along to unravel the complexity built up over the years and provide a truly secure, immutable, and scalable infrastructure, which has never been achieved.”