Initial coin offerings have seen a significant decline in popularity, but they are not to be written off completely. Although you don’t hear the term “ICO” so often nowadays, some recent regulatory developments indicate they have a place in the digital economy realm. Crowdfunding through token sales has a chance of becoming a mainstream instrument for raising capital.
Germany’s Financial Regulator Approves €250M Coin Offering
As if to prove coin offerings are not a dying genre, the German Federal Financial Supervisory Authority, Bafin, recently approved one of a decent size. Through its token sale, the Berlin-based blockchain startup Fundament Group is trying to raise €250 million ($278 million). According to the announcement, both accredited and retail investors will be able to take part in the fundraising campaign and individual investments will not be limited.
The project aims to enable participants to invest in the construction of commercial real estate through its Real Estate Tokens. At this early stage, it covers three sites in Hamburg, one in the financial capital Frankfurt, and another one in the university city of Jena, Forklog reported. Fundament Group’s ERC20 tokens will allow holders to receive annual dividends of 4-8% on their investments as well as payments upon completion of the construction works.
The German startup plans to conduct the token sale without an intermediary such as an investment bank, as the goal is to minimize the costs of the offering. Investors will be able to acquire the assets using either bitcoin core, ethereum, U.S. dollars or euros. Those who pay with fiat currency will receive the tokens safely stored on a hardware wallet.