China-based Crypto P2P Lender Raises $21 in Four Hours of Its RRB Tokens
Chinese crypto-based Peer-to-Peer lending startup, RenrenBit, has reportedly raised $21 million from a token sale. The platform, selling each dollar-pegged, Tether-issued token for $1, only needed four hours to complete the sale.
According to a notice on their mobile app, the sale happened on Monday and took place, despite the government’s ban on similar token sales. The project’s whitepaper explained the said tokens as being ERC-20 and running on Ethereum Blockchain.
Further, the coins could be used to settle transactional fees for crypto-to-crypto operations as well as OTC trading on RenrenBit. The tokens will be tradable on the RenrenBit app, according to the wallet startup.
The project’s founder and Bitfinex shareholder, Dong Zhao, said that they didn’t circumvent around the government’s ban on ICOs. He said that they had a talk with the authorities who already knew about it.
RenrenBit, which operates as a broker for borrowers and lenders, will allow users to borrow crypto assets or Chinese Yuan and use the tokens as collateral. The 21 million tokens sold represent half of all tokens as the rest will be held by the RenrenBit’s team.
The sale, however, comes at a time when several Chinese startups are closely following in the footsteps of Binance’s BNB. Zhao, a serial over-the-counter trader, recently led the firm to a $3 million Series A round. RenrenBit's valuation now stands at $16 million, according to comments posted on the company's telegram channel.