Pražská plynárenská, a gas and energy company in Czechoslovakia, has turned to cryptocurrency crowdfunding techniques in order to gain the capital to kick off several projects surrounding Prague. The company’s move seeks to capitalize on the immense popularity of funding methods on the blockchain in order to garner millions for new initiatives in the area.
The implications for both the regulatory and the economic sector are significant. First, the use of the cryptocurrency market to fund a traditional economic enterprise will create potentially thousands of jobs in and around Prague as the organization moves forward with several energy prerogatives. This will also allow the average citizen to contribute to the industry in their own ways.
If this campaign is successful, it will help to legitimize the concept of blockchain crowdfunding techniques for legitimate strategies to raise funds in Europe. Although they certainly are far from the first Initial Coin Offering to come out of Europe, Pražská plynárenská’s choice to embrace the modern funding strategy will continue to expand the reach of the ICO market.
The chairman of the company’s board elaborated in an interview that the main goal of the organization’s new project is to “go to the younger customers.” This isn’t far from the truth; cryptocurrencies have been embraced the most by the younger generations on the financial market, and tapping into this valuable subset of consumers could be the key to success in an evolving and competitive global economy.
Fighting against the perception that their company is made up of “dysfunctional moths” seems to be the most significant motivating factor in this recent move, though there is clearly an underlying financial motive behind the organization’s new funding plans.
The company has had quite the economic quarter. The recent profit measurement has the company climbing in profits to 1.19 billion koruna, the equivalent of $53.9 million USD. Additionally, non-number components of the organization’s progress also point to an up-swing of development. More clients and higher turnovers are predicted for the next quarter, though the company also speculates that profits will eventually fall lower by August.
The company already has won the support of over 42,000 buyers, and economic analysts within the country expect that their involvement in the cryptocurrency crowdfunding marker will help to incentivize both the company’s profits, and the prominence of ICOs within Europe.
The move comes in part as a response to the Czech National Bank’s declaration that there was little danger to the traditional banking infrastructures as a result of the increasing prominence of cryptocurrencies on the country’s evolving marketplace. The bank even urged investors to not “be afraid of Bitcoin,” outlining that traditional, fiat currencies are still usable for all transactions, and that nothing done by the new market will prevent that from being the case.
The recent efforts by this Czech energy and gas company will help to ratify public support of cryptocurrencies and Initial Coin Offerings, as well as incentivize the target “young people” to get involved in the market.