CoinPayments they have just completed a crowdfunding campaign selling 4% of the company's shares for € 252,023. It is neither the first step to raise funds nor the last. The company has used more tools to attract investments. CoinPayments Chief Marketing Officer Ward Stirrat told Cointelegraph about their experience in working with various fundraising tools.
He said that these tools can help build a bridge between the Bitcoin community and the traditional sector. Traditional brick and mortar businesses only need to "learn the language" of the Bitcoin community to attract investment from them.
CT: What are the main tools for raising funds in spatial cryptology? How do they work?
Stirrat Ward: If we talk about crypto-space, we should mention the debt offer when people are only offering the percentage of the company. But the actual allocation of quotas is not pre-set, so they ask people for money with the promise of repaying them in shares later. The problem is that the price of the shares is not determined at the time of the investments. However, companies use the method quite often.
I think it will be standard if you are a very young company with little corporate traction, customers and history. And in this case it is a good strategy. We did it too. We have sold 4% of our company's shares through the Bank to the Future platform.
However, companies often go out to ask for money very soon. They take the sale of many of their companies to get money from investors in which it is very speculative. In our case we have chosen to show that there really was a market demand; that company could earn a little money and be self-sufficient before going out.
There are also other fundraising options: tokens and coins. We have helped many people raise funds using tokens and coins as a means of fundraising. Cryptographic space companies can create their own currency or token to attract investors. There have been similar cases with Ethereum, Maidsafe, Ripple and other blockchain and decentralized activities. They used their own currency to ask the world to support their efforts. So I think it's a very interesting and growing trend in the industry.
Furthermore, it seems quite fruitful. Ethereum managed to raise 62 million dollars with his Ether. Ripple has raised 38 million dollars. And those are rather significant amounts of value in spatial encryption.
Another good example is StartCOIN, a currency used specifically for crowdfunding. We worked with the Bank to the Future platform helping them raise funds with their StartCOINs. We are still the only payment processor to accept StartCOIN. And they raised about $ 1 million by making people invest in StartCOIN.
There are other ideas we are working on. We do a lot of exploration trying to develop hybrid ideas. For example, we have some apps and a mobile POS coming soon. And we will share them with the community when we are ready.
CT: Do you plan to use other types of fundraising tools in the future?
WS: Yes. Tokens and coins represent a great opportunity in this space to raise funds. We made a presentation with Helix for the National Crowdfunding Association of Canada here in Vancouver. And I guess I made a comparison between now that we have 185 geographical currencies that are fiat and the possibility of doing the same with the crypto coins.
We have the initial origins of what I call my stock coins. The idea is that people can help companies that like to succeed. And each of these companies can have their own currency or token turn into money. It's a great way to raise funds. For example, Maidsafe could raise about $ 8 million just for token sales over 48 hours. And Ethereum has had a much more significant success with their Ether.
These kinds of opportunities are really worthy. I see great growth, especially in our area. I believe it will become the method of fundraising of choice. The currencies of my actions are valued as Ether and Ripple. If you like the company's efforts and would like to help you build your business; you can do it simply by buying their coins or tokens. There are many new ideas that can start with coins. This is one of the reasons that CoinPayments needs to be examined. We are open to having the largest coin pocket in the world. We added Ethereum immediately when it became available so that people could pay for things using Ether. This basically allows the growth of the new currency that comes.
CT: And what about companies that do not belong to the Bitcoin and Blockchain industry, brick and mortar companies? Is it possible for them to use the fundraising methods you use?
WS: I think it is a new paradigm that is evolving now. One of the great things about Ethereum is the invention of smart contracts. They allow an entire group of new companies to be financed or pre-funded by selling future agreements. I think that in this case there is a really interesting opportunity to involve more companies to participate in this. It could be not only brick and mortar companies, but also companies from other industries, such as entertainment.
CT: The main problem is that brick and mortar companies seem not to be able to attract the public from the Bitcoin sector to invest in their tokens. The representatives of the Bitcoin community simply do not pay attention to these projects. C & # 39; is it a way to solve this problem?
WS: I think we're doing it now with our hybrid apps. We are helping to build the bridge between the two communities. It's simple enough. You do not have to force a part to learn one language. You've just built the bridge between them. And over time they will understand what is happening. And that's what we do in CoinPayments going forward with our new initiative. We are creating an easy bridge to allow people to move between traditional payments and cryptographic payments.
CT: Can you give any advice to brick and mortar companies that want to attract Bitcoin investments?
WS: They must speak the language of the crypto community in order to play this game. They have to explain their projects in a way that makes sense especially for the Bitcoin community. I do not think the crypto community will move towards understanding what the specific business is. They will only understand how this business opportunity can be applied on Blockchain tokens and cryptocurrency tokens or other models.
"Brick and mortar companies need to find someone from the crypto community and articulate their business goals, emphasizing the way an intermediary company could help them create a token or message and frame everything. Crypto should clearly understand what the investment opportunity is. "
The possibility of creating a token or an independent coin is very important in this. It is very important that both communities start to interact because it is a huge opportunity. So brick and mortar companies must understand how to translate their goals into the language that the crypto community is talking about. I think once this is done, the encrypted community will embrace their ideas.
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