Blockchain Startup Rate Raises $15M USD In ICObr>
Blockchain startup Rate has raised $15 million in its initial coin offering (ICO), which ran from April 16 to May 22. The ICO was open to both public and private investors and drew support from Fenbushi Capital’s token funds, Node Capital, Kenetic, FBG Capital, AlphaCoinFund, IOST.
The Singapore-based startup said the funds will be used to support further development of the Rate3 Network, a blockchain platfom that aims to create a new global e-commerce ecosystem that ties consumers, merchants, suppliers and other intermediaries together using the firm’s RTE token.
The Rate3 Network is built on top of blockchain protocols Stellar and ethereum. Transactions facilitated on the Rate3 network are processed quickly by leveraging on the merits of Stellar network - this allows merchants to instantly verify a purchase with no risk of chargeback or fraud and pass on the cashback savings through third party affiliate players to consumers. Ethereum allows for the creation of smart contracts, which can store customer’s information and make transactions verifiable and trustworthy.
“The Rate3 Dual Protocol consisted of a Cross-Border Payment Protocol, and a Credit Scoring Protocol,” the company said. “Through the former, Rate3 aims to help businesses do cross-border settlements & clearance using the Stellar network. The Rate3 Credit Scoring Protocol taps on the Ethereum network to provide a gateway to further financial services: decentralized credit score, facilitation of credit loans, and creating bridges for other financial institutions.”
The RTE token, which started trading on a number of exchanges including Bibox, FCOIN, and Coinrail, is a utility token required for work to be completed on the ecosystem. It can also be used to incentivize good behaviour and punish bad actors in the Rate3 ecosystem.
“Given the differing regulations for payments and compliance in different countries, a RTE token and incentive mechanism helps to create a unified standard across various jurisdictions,” the company said.
Founded in 2016, Rate also offers other FinTech products in its portfolio, including web app RateX. RateX is a browser extension with an alternative payment method that offers “the best exchange rate and free online coupons and promo codes.”