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Australian fintech startup HCash just revealed it raised $53 million through an ICO in July

By Administrator | 6 November 2017

Initial coin offerings (ICOs) are polarising the business world at the moment, but one Australian company has made hay while the sun shines, raising 21,000 Bitcoins worth of capital.

Blockchain security startup HCash, which is developing its technology in conjunction with Melbourne’s Monash University, has revealed to Business Insider that the round closed on July 15. Based on that day’s exchange rate, the 21,000 Bitcoins were worth $53 million.

ICOs are a method of raising funds where a startup sells electronic tokens or “coins” to buyers that are betting that the business will do well in the future, thereby raising the value of the token. Unlike traditional venture capital, no equity is distributed to the token buyers, thereby getting around securities regulations.

Currently HCash’s electronic tokens in circulation are worth $33.7 million in total.

With cryptocurrencies like Bitcoin and Ethereum being born out of ICOs and booming this year, the practice has gained glamour among those looking for a quick investment into a high-growth startup. Celebrities like Paris Hilton and Floyd Mayweather have even publicly endorsed ICO issuers on social media, which has earned the wrath of the US corporate regulatorRead more

Tony Yoo - Business Insider Australia - 6 Nov 2017

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