With the sale of its own token, $25 million in under 15 minutes has been raised by Aragon, a project that creates software to manage companies, said Luis Cuende, the project’s co-founder.
Cuende said that for a start-up operating in the blockchain or distributed ledger space, the proceeds were the second-largest amount received. Aragon Network Token is the name of Aragon’s coin.
Developed specifically to decentralize the creation and maintenance of companies around the world, Aragon is the first such management tool, Cuende, 21.
Ethereum, a public blockchain similar to bitcoin’s, is the building base of Aragon.
Implementing basic features such as governance, fundraising, payroll and accounting, Aragon requires only the internet to function.
“What we make is software for people to organize themselves and run businesses using blockchain technology,” said Cuende.
“They don’t have to interact with banks or lawyers if they don’t want to. They can be in the field of service they want and they don’t have to do all these requirements.”
The offering to raise that much money for Aragon was unexpected for Cuende, who started his first software project at age 12.
“If you had asked me two months ago, $25 million was like five times what I was dreaming of,” Cuende said in an interview.
A blockchain solutions company called Slock.it for The DAO, a crowd-funded venture capital fund, was the one with the record for the largest funding raised in a so-called “initial coin offering” (ICO) and it was $150 million in May 2016.
By creating their own tokens or digital currencies and selling them to the public through ICOs, Aragon is one of numerous blockchain start-ups and projects that have raised capital.
Hiring additional developers and operational staff, bringing the team to 10 people this year, further developing its software and implementing security audits are the primary issues that Aragon will focus on with the funds raised.
On the other hand, a U.S. firm is set to launch the sale of digital token for forex trading. For its own token that allows investors to trade currencies on a digital platform, Fintech Investment Group, a U.S.-based commodity trading adviser, plans to launch an initial coin offering in June, company founder Alan Friedland said.
A technology that powers bitcoin and litecoin, two of the leading digital currencies, is the basis of the new digital token, to be called Compcoin. Potentially raising $30 million, 3 million coins, of the total current supply of 10 million, will be sold next month, Friedland said.
“With Compcoin, people will be given the opportunity to profit in the new digital token market with a financial instrument that will grow with the performance of the account,” he said in an interview.
“They should make money not only from trading on the platform, but also from the coin’s value when it tracks the performance of the account,” he added.
Enabling new companies with a technology idea to bypass banks and venture capital firms when raising capital, initial coin offerings are the current rage among startups in the financial ledger blockchain space.
(Adapted from Reuters)