Republic Announces New Crypto Token Sale for the Crowdfunding Company
Republic offers businesses the opportunity to accrue funding from their projects with support from the public. However, the company wants to expand their services to include a chance for investors to purchase digital tokens. These assets will be used to pay investors after crowdfunding campaigns.
The CEO, Ken Nguyen, showed up on Fortune’s Balancing the Ledger studio to discuss few details of the plan. There was not much conversation about the specifics, but he noted that consumers can expect the sale to commence in the next few months. He added, “There’s an equity revenue component to it as well as functionality.” When the tokens are available, they will only be sold by Republic initially, though other forums and exchanges were added.
This is not a new concept at all, since that is exactly what an initial coin offering does. This type of crowdfunding option was responsible for bringing in billions of dollars towards blockchain-related efforts. However, since ICOs have been the hotbed for scams lately, including theft and lack of follow through, it is sometimes hard to get consumers to trust the new projects that come out with them.
As far as the Republic goes, they are going about their ICO in the best way that they possibly can. Nguyen himself is a formal general counsel with AngelList, which is known for backing up startups to provide legitimacy to startups. Republic is basically a spin-off of AngelList, but it targets the everyday investor, rather than just professional investors. As such, the site has an intense vetting process, providing acceptances to a smaller fraction of applicants than esteemed university Harvard does.
Nguyen notes that anyone that makes an investment goes through a bit of risk, especially considering the lack of security in it. However, Republic does what they can to monitor the companies, holding the revenue in escrow, under the agreement that the startup will reach certain milestones to gain access.
Right now, there are three projects running on the platform. One of them is a project called “Quarters,” which has a CEO that is only 12 years old.