HomeCryptoEthereum NewsGnosis Raises $12.5 Million in Lightning Fast Ten Minutes ICO

Gnosis Raises $12.5 Million in Lightning Fast Ten Minutes ICO

Last week Crypto Insider published a story titled “Move Over VC: ICOs and Crypto Token Sales Are Raising Tens of Millions of Dollars in Hours,” focused on a new wave of spectacularly successful Initial Coin Offerings (ICOs) and token sales, which raised tens of millions of dollars with breathtaking speed. On April 19, the iEcec ICO its target funding of 10,000 bitcoin – more than $12 million – in less then three hours, breaking the previous record of Blockchain Capital.

Now the Gnosis ICO has shattered that record. In two consecutive tweets on April 24 the company announced that “The Token Sale has begun!” (7:00 pm) and “The Gnosis Token sale has concluded!” (7:10 pm). In ten minutes, the Gnosis ICO set a new record by raising $12.5 million in a token offering via a Dutch auction, the first successful one of its kind in crypto, Forbes reported.

Gnosis, covered by Crypto Insider last week, has developed a decentralized platform for prediction markets, built on Ethereum, which allows anyone to create a prediction market for any event. To showcase the capability of the platform, Gnosis has developed a Twitter bot that allows anyone to participate in a prediction market with a tweet.

Prediction markets allow participants to bet on the outcome of events, such as sports or election results. From the perspective of the participants, prediction markets are useful because they offer the chance to make some bucks. But from the perspective of the creators, prediction markets are very useful as a forecasting tool, better than traditional tools because the financial incentive stimulates participants to try and make accurate predictions, based not on what they wish to happen, but on what they think will happen. It seems likely that widespread, easy to create and easy to use prediction markets will democratize fact-based forecasting and, as envisaged by the Gnosis team, power a more efficient information society.

Etrereum co-founders Vitalik Buterin and Joe Lubin, as well as economist Robin Hanson, considered as a founding father of prediction markets, sit on Gnosis’ Advisory Board.

Buterin devised an innovative “Dutch Auction” mechanism for the Gnosis ICO.

“We now have the resources to create a platform where anyone in the world can create, run and monetize their own prediction markets, from sports betting to financial markets, weather prediction/flood insurance to politics,” said said Martin Köppelmann, co-founder of Gnosis, as reported by Forbes.

So now that the Gnosis team have their target funding, what will they do with it? The answers are in the Gnosis whitepaper. The sale proceeds will be used for:

Platform development: Platform development will include building upon and securing core smart contracts, additional frameworks such as a comprehensive oracle market, trading and management interfaces, service level app templates and customization tools, and integrations with future Ethereum infrastructure such as state channels and stablecoins.
Legal Costs: Legal requirements include corporate setups in at least 3 locations for crowdsale, operations, and gaming licenses. Work has been done prior to token launch with a US law firm to develop a legal opinion of the interpretation with US law. Ongoing resources will be required for gaming and possible financial use case legal work. A legal contingency fund will be reserved in case of future issues.
Marketing and Business Development: Business development efforts will be focused on identifying and forming relationships with new projects and existing partnerships which can be built on Gnosis. Marketing will be focused on marketing Gnosis applications to their potential customer segment. Additional efforts will be spent on increasing awareness and knowledge of the Gnosis platform and what can be built with it.

The Gnosis whitepaper also outlines a roadmap for future developments.

As we previously noted, it’s becoming evident that the ICO funding model is fast becoming a valid alternative to traditional Venture Capital (VC) funding models. Of course, it’s important to bear in mind that behind the lightning fast completion of some recent ICOs there are months and even years of hard work to devise a unique value proposition able to persuade masses of backers. However, this model seems less dependent on the whims of individual venture capitalists, and it’s able to leverage the wisdom of the crowds.

Image from 401kcalculator.org/Flickr.

The above is to be considered opinion and not investment advice in any way, as an unbiased media, no one interferes with the Editorial content of CryptoInsider.com, writers have freedom to choose their own direction, members of Crypto Insider do not participate in trades based on content.

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