DigitalX to launch ‘Initial Coin Offerings’ for BitCar and SingularityNET
DigitalX will manage upcoming “Initial Coin Offerings” for two cryptocurrency plays — BitCar and SingularityNET.
An Initial Coin Offering (ICO) is like an initial public offering — but instead of offering shares in a company, an issuer offers digital tokens that can be traded on cryptocurrency platforms or for digital services.
BitCar is raising up to $US25 million selling 250 million tokens that can be invested in “small fractions” of exotic supercars.
The exotic car platform is also offering an incentive to loyal investors who actively use the service: they could win a Lamborghini Huracán.
Meanwhile, US blockchain AI business plans to raise $US36 million ($48 million) in its ICO, selling 500 million tokens.
SingularityNET is a decentralised market for artificial intelligence algorithms, where “AI Agents” share data and request and carry out services for each other and for customers.
DigitalX (ASX:DCC) chief Leigh Travers told Stockhead this week that investors are beginning to realise how much of a fee they can command for marketing and running ICOs – and what those fees are worth.
DigitalX’s fee for work with Bitcar will be about 4 million tokens (about $US400,000) for corporate advisory services, but that’s based on how successful the offer is.
With SingularityNET the fee will be about 8 million tokens (about $US576,000), which are called ‘AGIs’, and an extra fee for introducing the project to the DigitalX cryptocurrency investor network.
Advisors in IPOs would normally take a fee of 5 per cent. DigitalX’s is 0.8 per cent with SingularityNET, and 1.6 per cent with BitCar.
DigitalX — the ASX’s best-known crypto play — has jumped more than 250 per cent in value over the past month as the value of Bitcoin soars.
The shares are up more than 250 per cent over the past month. They were trading at 22.8c in Thursday lunchtime trade — compared to about 6c in mid-October.
Bitcoin burst through $US10,000 on Wednesday and — without even pausing — carried on to a high of $US11,377. Within hours the price plummeted to $US9300 — before gaining again to $US10,300 by lunchtime Thursday.
A month ago a single Bitcoin was worth $US6120. The next most popular digital currency, Ethereum, passed the $US500 mark last night — up two-thirds for the month.
Cryptocurrencies such as Bitcoin and Ethereum are created and held electronically. They are not backed by any bank — and are instead supported by a computer-based “blockchain” technology that provides a public ledger of transactions.