Many people understand what an initial public offering (IPO) is, but might not have heard of ITO. PRNewswire released news on February 28 2017 that OpenLedger’s Apptrade, the platform creating “Kickstarter for Apps on the Blockchain”, has announced the start of its Initial Token Offering (ITO). This is probably one of the first of its kind, and will not be the last.
Before we move on, some of you might be thinking, what is OpenLedger? Who is Apptrade? Is it another Bitcoin? I don’t even know what Blockchain is!?
Here’s a quick summary on the terms and names that will be used in this article:
- OpenLedger Decentralized Conglomerate (DC) – Started out as a decentralized exchange, it is now the world’s first blockchain powered conglomerate to allow multiple platforms to benefit from cross-promotion throughout its entire network.
- CCEDK – Cryptocurrency exchange and the operational brain that allows bootstrap start-up services worldwide, from one place. CCEDK offers an all-in-one campaign and crowdfunding kit for start-ups, marketing, pre-launch preparations and initial coin offerings.
- Blockchain – The technology of the database system which acts as a public ledger that is maintained by many people instead of a single authority. The underlying technology which started the virtual currency Bitcoin.
- Digital Tokens – Forms of digital currency which has a value attached to it. Examples are Bitcoin, APPX, Obits, etc.
- Ethereum – A computing system based on another virtual currency network (by Microsoft, JPMorgan Chase and other corporate giant) that businesses can use to track data and contracts.
- Apptrade – A platform on OpenLedger and marketed as the “Stock market of apps”.
If you like some further background before continuing, do read:
Introduction to Blockchain
For the purposes of further development, OpenLedger’s Apptrade ITO will enable the platform to raise required funds to grow further.
Following the ITO, the platform will start issuing master tokens three times a year based on the demand, with Ronny Boesing saying “Apptrade’s venture is an innovation in investment finance, one that could have fascinating results for the future of fundraising in general. As crowdsales and ITOs have transformed cryptocurrency investing, Apptrade FPOs (follow-on public offers) and digitally shared reserves will transform the app investment market in a spectacular fashion.”
In a similar fashion that funds invest in several portfolio companies, Apptrade creates portfolios, or groups of apps. In the event where one of those apps becomes the next Facebook or Snap, then the value of the entire portfolio rises. When a portfolio company increases in value, through a growth in revenue, it will increase the value of the portfolio fund.
App creators can join an existing portfolio, or launch a portfolio of their own. On Apptrade’s end, they will provide a set of market analytics tools to help sponsors analyze trends, and guide them to make informed decisions on funding.
Daniel Pineda, founder of Apptrade LLC “With the transparency and security of OpenLedger, Apptrade can fully embrace this new form of collaborative marketing and funding. If one or a few of the brands go viral and become hits, it should put eyes on the rest of the brands in the group. Our mission is to improve access to value for content creators worldwide.”
Would you also like to read on how it impacts banking:
What Blockchain Actually Means For The Future Of Banking
Ronny Boesing continued, “To be able to invest in many apps at once and have all the compliance and tracking done automatically is simply amazing. It is the essence of innovation on the blockchain and will attract brokers worldwide.”
Trust and due diligence factors have always been a concern with investors. As such, OpenLedger ApS will be the beneficiary of all funds for the APPX master token crowdsale and future rounds of funding, and will be releasing funds to the Apptrade project. Similar to (Software as a Service) SaaS businesses, Apptrade will have to show platform user growth and increases in portfolio valuation, to be able to continue getting funds. All future revenues and dividends related to these portfolios will be distributed to the master token holders by OpenLedger ApS in cooperation with Openledgers’ Apptrade ApS.
Excited to explore and be a part of the ITO yet? You can take a look or participate in the Apptrade ITO here – https://ito.apptrade.io/.
According to CB Insight’s blog post on Ledger Fever, we can see amazing growth of blockchain applications with funding to the Bitcoin and blockchain sector has going from almost no investment in 2012 to over $500M in each of the past two years. They include a market map showing 95 Bitcoin & Blockchain Startups in different categories.
Increasingly large numbers from financial service corporations are looking to blockchain and distributed ledger solutions to address pain points that include data reconciliation, clearance, and settlement, among other issues.
On the established business end, Microsoft, JPMorgan Chase, and other corporations are also set to announce the formation of the Enterprise Ethereum Alliance, which will create a standard version of Ethereum software that is more agile and adaptable than Bitcoin, and will ensure a newer business option outside a separate, IBM-led blockchain effort. Accenture released a report indicating that blockchain technology could save the 10 largest banks $8 billion to $12 billion a year in infrastructure costs — or 30 percent of their total costs in that area. Accenture is one of 11 companies on the governing board of the Ethereum alliance.
The possibilities are truly endless. Now imagine a world where shares of every business are digitised and made into digital tokens. As an entrepreneur, you can raise funds for your company or as an investor, you can choose to invest in your choice of business, both almost instantaneously. All these from the comfort of your computer with just a few clicks and verification.