Tozex, the French-based crypto coin issuance platform, claims to have devised a new crypto coin financing system that offers companies a way out of this economically difficult period due to the pandemic: the „Believers Reward Offering“ (BRO).
BRO, explains Tozex, represents the „first sustainable alternative“ to the Initial Currency Offering (ICO) and the Security Token Offering (STO), allowing companies to access financing through stablecoin loans from investors around the world.
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BRO is the „anti-crisis solution“ for companies
The new fundraising tool, the company says, will help small and medium-sized businesses „get through this difficult economic period and open up new financing opportunities. BRO is described as the „perfect business solution to the crisis.
The project is being carried out using Ethereum Code blockchain group lending protocol, which uses smart contracts to make loans independently and transparently. The company says its system minimizes the risk of price manipulation and scams, two problems often associated with ICOs.
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Remy Ozcan, co-founder of Tozex, is confident that in the near future, tools for issuing tokens such as BRO will expand beyond the blockchain sector and become commonplace in the business world.
The collapse of the ICO sector
After the boom at the end of 2017, the popularity of the ICOs has declined significantly. According to a study published in March of this year by CB Insights, ICOs raised $7.8 billion in 2018. In 2019, this figure dropped by more than 95%, reaching a value of only 371 million.
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However, the community has never given up on the idea of raising funds by selling tokens. Alex Masmej, founder of MetaCartel DAO, managed to raise $20,000 by selling ALEX, his „personal token“, on the Ethereum network:
„Thanks to the $20,000 I’ve raised, I’ll be able to return to San Francisco with a small safety net to maximize my potential. In addition, this crisis could reduce the costs of my life.