So we’re hearing a lot of noise about cryptocurrency initial coin offerings (ICOs). But with so much new flow, can the supply support the demand? In recent news, boxing hot-shot Floyd Money Mayweather backed the initial coin offering of Hubii. This was for an online publishing opportunity but amid all of the excitement, the ICO seems to have tired out faster than Connor McGregor in the “Fight of the Century”.
Hubii was aiming to raise $50 million during a two-week fundraising campaign but unfortunately it fell a bit short. How short did it fall? Well by our standards, very. By the time the ICO closed, it had only raised about seven million dollars. This is a fraction of what the great hype was looking to generate and certainly with a name like Mayweather, it was less than a heavyweight performance.
“We will be setting a minimum target of $5m,” they wrote in their white paper — a type of prospectus — just before the fundraising. That minimum “would still allow the team to develop some minimum viable products, but it is likely that extra funding would be needed, by more conventional venture capital routes.”
Mayweather had taken to Twitter to help boost attention on the ICO. He’s got 7.7 million followers and his endorsement garnered additionally buzz on the heels of his “coming out of retirement” fight against UFC pro, Connor McGreggor. His tweet read, “You can call me Floyd Crypto Mayweather from now on. #HubiiNetwork #ICO starts tomorrow! Smart contracts for sports?”
He’s just one of several celebrities endorsing these IPO-like offerings. Paris Hilton made headlines recently with her own backing of another initial coin offering. The unfortunate part of these ICO’s is that they can’t just be a 3 letter business but have actual goals written out in a “white paper”. This is similar to a prospectus that a publicly traded company releases prior to a stock offering. To many, the white paper supporting the Hubii ICO was lacking in content.
But at the heart, the goal of the Hubii is to be used as a cryptocurrency to help people who produce online media — including journalists like me, authors, musicians, and the rest — get paid for their work. Hubii CEO Jacobo Toll-Messia told a reporter, “We are happy and content with our ICO…We see many individual buyers of tokens which manifests the broad distribution we are aiming for.”