BitcoinGrowthFund (BGF) has raised $2.5m in an initial coin offering (ICO) to invest in cryptocurrencies and other companies’ ICO.
The Dubai-based firm launched its ICO in Bangkok on April 27 and successfully raised $1.6m within 24 hours from retail investors.
An ICO is similar to an IPO where retail investors can buy shares in a company, however, instead of shares investors receive digital, blockchain-based tokens representing their stake in the business.
Token owners can also trade or sell their tokens at any time, thereby offering them the liquidity often lacking in traditional investment.
Instead of using the capital raised through its ICO to back startups as a traditional VC would BGF will invest the money into the mining of cryptocurrencies such as Bitcoin, Ethereum and Litecoin.
It will also use the fund to take part in future ICOs by blockchain projects and loyalty programmes as well as startups working across blockchain and IoT startups.
Those who purchase tokens through BGFâ€™s ICO are paid monthly dividends based on the returns earned from the firmâ€™s various investments.
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