Former Mozilla founder Brendan Eich took to ‘Initial Coins Offering’ (ICO) for raising funds for his new venture – Brave. Brave is a new browser touted to be the fastest and safest ever browser. Companies have earlier raised funding via the ICO route but not as Brave did. It raised $30m that too in just 30 seconds. Yes, you read it right- 30 seconds flat.
ICOs operate by selling investors cryptocurrency, which can be used to store value in many ways beyond a traditional share. For its sale, Brave created its own coin — The Basic Attention Token, or BAT — and sold one billion of them. That collection of BAT cost 156,250 ETH, which is just over $35 million. A further 500 million BAT is stored for user growth and “BAT development,” according to Brave, which is not planning another token sale in the future.
Kik, a messaging service popular with young people in North America, recently announced plans for its own ‘Kin’ coin which it will use as a virtual currency to pay for related goods and services, and that’s the same approach Brave has taken. It plans to use BAT the currency for its advertising system, which it claims can reduce ad fraud and increase efficiencies for publishers and advertisers. It is also assessing the potential for micro-payments and buying digital goods with BAT in the future.
Brave’s pitch to consumers is faster loading times, tighter privacy controls and even the potential to earn money simply by reading content.
More immediately, it said it will use the proceeds of this ICO to develop its advertising platform.