Bancor ICO Raises Over $150M Despite Problems

Blockchain, FinTech, ICO News, Innovation, Investing | June 13, 2017 By:

Blockchain startup Bancor Protocol has raised over $150 million in its initial coin offering (ICO). The Bancor Network Token (BNT) fundraiser drive lasted just three hours.

The Bancor Protocol is a smart-contract-based token conversion protocol which allows anyone to design new tokens using smart-contracts, which implement the reserve system. Creators will be able to customize their token’s reserve ratio, initiate an initial coin offering (ICO), and issue coins which benefit from instant viability.

10,885 ICO participants contributed 396,720 ETH ($153,003,311.63) in exchange for Bancor’s own native token, BANCOR (BNT) – the first blockchain currency issued using its protocol. BNT will be used as the primary reserve currency in the ecosystem and will draw its value from the collective network effect of all Bancor-compatible tokens holding it in reserve.

The crowdsale faced some major problems with what it claimed were malicious attacks on its network, which led Bancor to extend the restriction-free hour.

In an official statement, Bancor team said: “We deeply regret that not everyone could participate in the Bancor TGE today. In our efforts to ensure full community participation, even after overwhelming demand and traffic, exacerbated by massive malicious attacks to our network, the Bancor team opted to extend the restriction-free hour in an effort to ensure that pending transactions were completed. When the “hidden cap” was revealed, the flood of transactions that arrived was even more overwhelming. Consequently, after an unprecedented amount of capital had been raised, the Core team conscientiously closed the fundraiser.”

The crowdsale also saw participation of notable investors including Blockchain Capital and Tim Draper, who recently joined Bancor as advisor.

“We are thrilled to invest in such an innovative and thoughtful project as Bancor,” said Brad Stephens, Managing Partner at Blockchain Capital. “What attracted us was first and foremost the team. With two decades of experience in end-user applications, a strong network of supporters and advisers, the Bancor team has exactly the kind of DNA we want to see more of in the Blockchain space to help bring the value revolution to mass market.”

“We are beginning to explore the possibility of issuing a VC Token for our diverse network of investors, entrepreneurs, local and global businesses,” said Tim Draper. “We’d like for this to be a Smart Token, so it can benefit from continuous liquidity from day 1. We look forward to a long collaboration with the Bancor team on this project, and are excited for what BNT has in store.”