Crowd for Angels has launched a “Liquid Crypto Bond” initial coin offering (ICO). The hybrid security is a mix between traditional debt and “Angel tokens.” Crowd for Angels expects to raise up to £50 million with the 5 year Liquid Crypto Bond paying 4% interest per annum. Each investor in the bond will receive 99 Angel Tokens. Tokens are being issued to investors as method to reward for investing in the Bonds at no additional cost to them. A total of 5 billion tokens will be issued if the fund raise reaches its target of £50 million. At the choice of the Bondholder, interest may be paid either in cash or tokens.
The use of the proceeds from the Crypto Bonds will be used by Crowd for Angels to invest in or acquire secured crowd bonds listed on its own platform. Crowd for Angels explains that bondholders will therefore indirectly gain investment exposure to the bonds listed on the Crowd for Angels platform by investing in the Bond.
Crowd for Angels said they expect the tokens to trade on crypto exchanges following the ICO. Additionally, Crowd for Angels’ in house marketplace will enable investors to buy or sell the Crypto Bonds depending on supply and demand.
What about the tokenomics?
The tokens will be used to generate attention for the platform by rewarding users who complete actionable ‘events’ with free Angel tokens. Users will be incentivized to engage with the website, apps, product advertising and media via the token. Crowd for Angels wants to foster user interaction, loyalty and spread content through the internal and external network. The tokens may also be used to invest in offerings on the Crowd for Angels platform.
The Crowd for Angels’ Bond is also eligible for inclusion in the Innovative Finance ISA, which can be opened through their platform.
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