KyberNetwork may be poised for a strong showing in their forthcoming Initial Coin Offering (ICO). According to a report from the company, KyberNetwork has received over 50,000 applications for their “ICO whitelist” in advance of the investment offer. It is interesting to note that KyberNetwork says this WhiteList is now the largest Slack Community in the world that was created in just 5 days. Pretty impressive.
KyberNetwork expects to raise 200,000 ETH for their KyberNetwork Crystals (KCN) at an initial exchange rate of 600 KNC to 1 ETH. Roughly half of the offer has already been raised in a private round and the other half being offered evenly to every eligible whitelist applicants, according to the company. The sale is expected to last 48 hours to allow the whitelist registrants the opportunity to participate. KyberNetwork is also sensitive about clogging the Ethereum network.
Loi Luu, KyberNetworks’ co-founder and CEO, said he was pretty awed by the indications of strong demand;
“It’s incredible and truly humbling to see the early support and enthusiasm we have received for KyberNetwork. Our amazing team has a created a vision and a solid plan for integrating KyberNetwork with what we believe will be the fundamental framework of cryptocurrency trading in the future, and I think the crypto community has also recognized this. With our KNC token and our ICO, we’re looking to build a strong, lasting community around KyberNetwork that encourages enthusiasts of the platform. Even if someone missed our whitelist registration, we feel like there is an opportunity with our ICO structure for everyone to participate as we build our technology and partnerships over the coming months and years.”
Kyberians for KNC
So beyond pitching some crypto tokens, what is KyberNetwork all about?
KyberNetwork is an “on-chain protocol” that will allow instant exchange and conversion of digital assets and cryptocurrencies like BTC and ETH with anticipated high liquidity. Besides serving as an exchange, KyberNetwork will also provide payment APIs that will allow wallet accounts to easily receive payments from any crypto tokens.
KyberNetwork is launching at a time when the crypto world is experiencing explosive growth in digital currencies and tokenized offerings. While this rapid rise of crypto assets has been met with solid investor demand, KyberNetwork’s says there is opportunity in the current limited options to liquidate these digital assets. The company expects to use 50% of the ICO proceeds as reserves to be managed by the KyberNetwork and utilized to guarantee this liquidity.
Crowdfund Insider asked Luu if the ICO could potential go beyond $65 million. He said the offer has a hard stop;
“Our ICO has a hard cap of 200,000 ETH. The reason why we decided upon this amount is because KyberNetwork is an exchange platform and we need to guarantee liquidity as we grow and incorporate 3rd party reserves on our network. We’re in the process of developing cross-chain protocols for tokenizing other cryptocurrencies like Bitcoin and Zcash on Ethereum to enable trades between ERC20 tokens and different coins. A reserve is critical for us to maintain liquidity and we have designating 100,000 ETH specifically for this purpose.”
If you are interested in participating, the public KNC sale kicks off on September 15th. You can read more about it here in their white paper.
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