New token sale for blockchain-based foreign money EOS begins on Monday

NEW YORK (Reuters) – Block.one will start selling a new blockchain-based digital currency or token called EOS on Monday, the tech company announced on Thursday.

A man explains how a digital currency mining operation works while pointing at the required hardware during the Inside Bitcoins: The Future of Virtual Currency Conference in New York on April 8, 2014. REUTERS / Lucas Jackson

The sale is the latest capital-raising effort by a technology startup that is creating its own digital currency and selling tokens to the public. This practice has no regulatory oversight.

According to analysts, this will be one of the most anticipated token sales in recent months.

Blockchain, a distributed ledger that became known as the underlying technology for Bitcoin in digital currency, is growing in popularity because of its potential to track assets across all industries.

The US startup Civic sold $ 33 million in digital currency tokens for its identity verification project in a public sale, Reuters reported Thursday.

Block.one calls the sale of EOS a “token distribution”. The company wants EOS to be used by large companies to enable organizations to automate processes, monitor assets, and build multiple applications.

Brock Pierce, co-founder of block.one, told Reuters that EOS should be the foundation for business applications in the blockchain world.

The token sale will take place over a one-year period on Ethereum, another blockchain-based currency, and around 1 billion tokens would be sold in 341 days as of June 26, Pierce said.

According to the block.one distribution plan, 20 percent of the EOS tokens will be sold in the first five days of the book opening, while 70 percent will be divided evenly into 350 consecutive 23-hour periods of 2 million EOS tokens each from July 1. The remaining 10 percent are reserved for block.one and cannot be traded or transferred on the Ethereum network.

The price for EOS is set based on market demand, Brendan Blumer, managing director of block.one, said in a statement.

The last blockchain platform token put on sale was Qtum in March, which raised $ 15.6 million.

Blockchain Capital’s Pierce said EOS could raise more than the $ 150 million Bancor raised a few weeks ago. Bancor has raised the largest amount of capital in a token sale to date.

Bancor enables the creation of so-called “smart tokens” that can hold one or more tokens or digital currencies in reserve.

“The goal of the EOS token sale is to make it really democratized and give everyone equal access,” Pierce said.

Reporting by Gertrude Chavez-Dreyfuss; Adaptation by Denny Thomas

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