$185 million in 5 days: Block.one sets new ICO record with its EOS token
Blockchain startup Block.one announced this morning that it has raised $185 million in just five days of selling its EOS cryptocurrency token. That sum breaks the record Bancor set just a couple of weeks ago with its nearly $150 million raise.
Block.one’s goal is to bring blockchain to businesses. It claims its platform offers a level of scalability unprecedented in the blockchain world: It would be able to process millions of transactions per second with no transaction fees. “Block.one intends for the EOS.IO software to support distributed applications that have the same look and feel as existing web-based applications, but with all of the benefits of the blockchain – namely transparency, security, process integrity, speed and lower transaction costs,” according to the company’s press release.
Still, as a recent CoinDesk story points out, the company has had little to show for its claims so far, something that has become characteristic for many startups launching initial coin offerings (ICOs).
The lightning-fast, high-figure fundraises that blockchain startups have been pulling in lately has raised concerns in the blockchain community. Experts, such as William Mougayar, have warned that this strong short-term performance could very likely lead to poor long-term results.
Block.one set a long fundraising window — 341 days — in an attempt to counter this flash-raise phenomenon, the company said. It’s unclear whether that long window did anything to relax investor enthusiasm. So far the company has sold 20 percent of a total 1 billion EOS tokens being distributed.
Here’s how the company describes its strategy:
The distribution uses a ground-breaking token participation model by creating what is intended to be the fairest token distribution project launched on Ethereum to date. This elongated timeframe eliminates the quick frenzy usually surrounding short token sales, and allows the community ample time to learn about the EOS.IO software being developed by block.one and participate in the token distribution if they wish.
The EOS Token distribution also approximates an auction where for every period, everyone gets the same price. At the end of a period, the respective set number of EOS Tokens for that period will be distributed pro rata amongst all authorized purchasers, based on the total ETH contributed during that period.
CEO Brendan Blumer said he expects strong interest in the token to continue throughout the rest of the fundraising period.