Ethereum May be Launching New Token
One of the most highly anticipated projects of the year is ethereum’s launch of a new token sale.
This October, the initial coin offering or ICO for the Raiden Network will likely find the funding it needs. The ICO is led by one of the larger blockchain consulting firms known as Brainbot as well as their co-founder Heiko Hees. This will be the latest of their projects since they have not released anything since 2015.
According to the news from the entity, the funds that they receive will be used to finish building the network that enables users of the coin to send and receive payments.
The tokens represent a decentralized currency that makes users able to buy and sell products or trade coins at a high volume without an intermediary interrupting the use.
Because of the design of the Raiden Network, it is possible that it will cost fees to use it. The company is including a service that helps to ensure fraud will not be large and funds cannot be easily stolen since the users are not going to want to take the extra step and do it themselves.
The team behind the ICO is hoping to have what they call a “uniform price Dutch auction”, which essentially means that the prices of the tokens will likely go down during the course of selling it. This will hopefully lead to less price gouging based on hype and media and allow users to buy the token at a lowered price.
There is a similar model out there known as Gnosis. Gnosis is an ethereum-based project that worked on producing a model similar that would’ve come out last spring. The model hopes to sway away from the speculation that drives the prices of most cryptocurrencies. With $12.5 million worth of coins sold in 15 minutes, the hopes are high for Raiden to workout.