A Chinese company called RenrenBit, which is a P2P lending platform and crypto wallet, has recently lined up commitments worth $21 million USD for the sale of its own tokens. The company was founded by Dong Zhao, a famous trader specialized in over the counter (OTC) trades. This company is also known for being a Bitfinex investor.
Now, the platform has decided to sell 21 million of its own RRB tokens on its own platform this week. Each token cost 1 USDT (Tether), which is equivalent to one dollar. They were all sold pretty fast. In around four hours, no token was left unsold by the company.
At the moment, investors still have a period of 48 hours in which they are able to change their minds about the sale, so additional tokens might still be available for sale, but there is no way to tell for sure whether any investor will actually do it.
The sale had two categories. Normal retail users could buy up to 1,000 tokens while accredited and higher net worth investors were able to invest up in buying up to 75,000 RRB tokens.
All similarities with Binance are not any surprise. This is yet another Chinese startup that is focused on the creation of the system popularized by Binance: the Initial Exchange Offerings (IEOs). The BNB tokens created by Binance exploded in value after the exchange started this business, so everybody is looking to copy this successful method of investment.
According to the company, all tokens will be tradable on its app. The white paper, which was released before the sale, states that RRB is set to be an ERC20 token based on the Ethereum blockchain. Its main use will be to pay fewer fees when using the OTC desk created by the company, but it can also be used as collateral for the lending services which will be offered on the platform.
The 21 million tokens that were sold during this quick sale amount to half of all the tokens that will be issued by the company. The other half is set to be controlled by the company and its team. 10% of the tokens will be put out for trading soon.
Obviously, this sale raised some eyebrows. China has prohibited the sale of any tokens on Initial Coin Offerings (ICOs) back in 2017. According to Zhao, however, the company talked for over half a year with the local regulators in order to avoid breaking any rule, so you can expect the company to be fine. However, he did not clarify how the company did it.
RenrenBit Just Had A Series A Funding Round
RenrenBit is definitely doing very well at the moment. The company just got $3 million from a recent Series A funding round. Several companies invested and the ones that led the round were Bitfinex, Dragonfly Capital and the Dfund, which was also owned by the company’s founder Zhao. At the moment, the company is said to be worth $16 million USD.
The company was founded back in 2018 and it currently operates officially as a broker for lenders and borrowers for the Chinese yuan and crypto assets in general.
Zhao, the head of the company, is a pretty famous investor. He is a part of the crypto industry since 2012 and has started several companies before this one. More recently, he shifted to the OTC trading market and has created the DGroup, which runs this company the venture capital DFund.