ICO watch: Aussie fintech Coinnup is making a $US32 million pitch
Perth-based fintech Coinnup has launched the second round of its cryptocurrency token sale on a quest to raise $US32 million from “PMZ” tokens.
Coinnup started with the aim of developing a range of crypto tools, including a listing platform for Initial Coin Offerings (ICO) and a cryptocurrency exchange.
An ICO is like an initial public offering — but instead of offering shares, an issuer offers digital tokens that can be traded on cryptocurrency platforms or swapped for services. Cryptocurrency refers to digital money such as BitCoin.
Coinnup is registered in Australia but earlier this year launched its own ICO in Hong Kong for the issue of PMZ tokens.
The project it’s developing is called the Paymaz platform, which lets users trade, buy and sell different cryptocurrencies from within an app.
Coinnup also plans to the infrastructure for users to make business-to-business payments through cryptocurrency or pay for things like mobile phone bills through the one app interface.
Coinnup so far has 104 million tokens on issue out of an expected total of 298 million. Tokens are currently going for 0.0004 ether each, or US 22c.
Yesterday it launched a second round of sales with a 20 per cent bonus token incentive.
So far this year Australian companies have raised around $150 million through coin offerings.
However, cryptocurrency experts have previously told Stockhead there are key questions investors must ask before diving into these investments.
“Ask yourself if there is a need to use a decentralised technology or whether it is just a way to raise money,” Apollo Capital’s Henrik Andersson told us at the start of the year.