Online Safety Community

To ICO or Not to ICO? That Is The Question for Today’s Startups

Aung Kyaw Moe and Jun Hasegawa have a lot in common.

Both are entrepreneurs. Both left home to seek their fortunes. Both are now working on digital-payment projects with operations in Southeast Asia.

But when it came to collecting money to fund their startups, they took opposite paths. Aung, 42, is raising as much as $30 million in venture capital with the goal of perhaps going public in a few years. Hasegawa, 36, brought in $25 million through a so-called initial coin offering, an unregulated sale process that’s exploded in popularity in the last year. His company’s tokens, OmiseGO, are already worth more than $2 billion.

“It’s been crazy,” says Hasegawa, co-founder and chief executive officer of the startup Omise. “It took only six months to get here.”

Aung watched Omise’s rocket ride with wonder and a touch of envy. Should he try an ICO too? While venture money can be harder to get, he ultimately decided on that route and said ICOs are too shaky a foundation to build a business on.

“If it all came crashing down one day, you would have no control,’’ said Aung, whose startup is called 2C2P, for Cash and Card Payment Processor. “I like to go to bed with peace of mind.’’

What’s an ICO? Like an IPO But With Digital Coins: QuickTake Q&A

The rivals illustrate a dilemma startups are now facing the world over. Should they pursue traditional venture capital with its predictability and limitations or turn to ICOs where there is quick money, volatility and innumerable unknowns?

ICOs are winning support with fundraisings jumping to more than $6.8 billion in 2017, up from $151 million in 2014, 2015 and 2016 combined, according to research firm Smith + Crown. Telegram Inc., an encrypted messaging service, is planning to raise at least $1.2 billion through an initial coin offering, which would be by far the largest ever. Many people buy into ICOs for a simple reason: The coins have soared in the past year, driven in part by a surge in Bitcoin of more than 10 fold.


Omise and 2C2P took different routes to their decisions. Aung, a Myanmar-born computer programmer, founded his startup in 2003 in Bangkok. He helps customers like Thai Airways, Lazada and Zara handle online payments with credit or debit cards — or cash payments at convenience stores from people without bank access.

The Japanese Hasegawa and Thai co-founder Ezra Don Harinsut started Omise in Bangkok a decade later as an e-commerce firm, then pivoted to payments. Their OmiseGO network aims to let anyone carry out financial transactions with cryptocurrencies such as ethereum and Bitcoin, as well as fiat money like the dollar. They want to move people from traditional banking into the decentralized world of digital currencies.

They may not have been able to raise venture money even if they tried — their crypto service hadn’t launched last year when they were seeking funds. The ICO was also easier because they didn’t have to give up equity in the company. People who buy OmiseGO tokens — or just OMG — don’t get shares in Omise; rather they get currency they’ll be able to use on the company’s network.

Hasegawa said some of his existing investors were reluctant to back the project. But because the company wasn’t selling equity, they didn’t need shareholder signoff. They posted the ICO whitepaper — essentially a fundraising plan — online in June without any detailed financials. A few weeks later, they had more than enough interest.

“When we told them we got more than $200 million in commitments, they were like, ‘Whaaaat?,’” said Hasegawa. Omise owns 30 percent of the tokens, now worth more than $500 million.

The ICO money was aimed at helping the company launch an ethereum-based technology for digital wallets by the fourth quarter, but the project hasn’t started yet. Hasegawa says a limited version of the network is on track for mid-2018.

Read more for further details http://snip.ly/bpymm

Views: 34

Comment

You need to be a member of Online Safety Community to add comments!

Join Online Safety Community

Take our poll!

Take our poll!

Latest Activity

HrishikeshRam posted a blog post

Hand Safety Tips

The number of workers doesn’t use their gloves when it fails to offer enough ability for the important task. Dexterity is quite crucial while performing many tasks, such as working with little parts, or when working in cramped conditions. The real issue is simply the glove – it doesn't give the required dexterity to perform these tasks, so laborers remove their gloves, making themselves vulnerable. Read more…See More
yesterday
Adam Fleming posted a blog post

How to Turn Your Cyber Incident Response (Plans from Blah) into Fantastic?

Let us face it. A cyber incident could happen to any organization that has a computer system that is connected to the Net. Well, the next question is, does such an organization exist? Almost no organization in today’s world, no matter of what size and which part of the world it could be in, can function without a cyber system. So, this means that simply any organization is vulnerable to a cyberattack and every organization should have a cyber incident response plan in place.The simplest way to…See More
Friday
Traininngdotcom-LLC posted a blog post

What is Service Level Agreement and what needs to be included in a SLA?

Today's world is different from the one our previous generations grew up in. Business activities have shot up in multifold ways. As business grows, activities required to make them run grow, too. The growth of the provision of services has added a new dimension to business. When business is merely about purchasing goods from a manufacturer or distributor and selling them at the retail level; there is no implicit or explicit, written agreement per se about the transactions made between the buyer…See More
Friday
kate smith posted a blog post

Unravelling the FMLA

The FMLA was enacted with the purpose of helping qualifying employees keep their jobs while being able to attend family exigencies. There is some misunderstanding as to its provisions, though.The Family and Medical Leave Act (FMLA), which is governed by the Wage and Hour Division (WHD) agency, is an attempt by the federal government to augment the policy of leaves for certain kinds of employees. It offers select employees of covered employers to take unpaid leave for certain purposes for…See More
Friday

Forum

Road Safety

What can be the best measures for Road Safety?Continue

Started by Jen McDade Sep 27.

safety equipments in breweries 4 Replies

safety equipments in breweries -- kindly provide detailsContinue

Started by ajit. Last reply by Jen McDade Sep 24.

Unusual Safety Tips 10 Replies

Please share some unusual but genuine safety precautions.My unusual safety tips - Don't drink sweet fruity juice while driving in the night as it contains sugar and sugar slows down your blood…Continue

Started by Arnold Brame. Last reply by Jen McDade Sep 24.

Safety products 9 Replies

While working or at some work stations, employees are exposed to threats or at times suffer severe injuries. The safety of the employee should be the foremost priority. Safety equipment aids help in…Continue

Tags: equipments, and, products

Started by Enna Henry. Last reply by Jen McDade Sep 24.

Talend Application Integration

APPLICATION INTEGRATION:Talend ESB and Application Integration delivers agile real-time integration of applications and data.Heterogeneous Application and Data IntegrationTalend’s open source ESB…Continue

Tags: york, new, certification, training, talend

Started by nicolewells Sep 21.

Badge

Loading…

© 2018   Created by Safety Community.   Powered by

Badges  |  Report an Issue  |  Terms of Service