Swiss-Israel technology startup, Sirin Labs, has announced that it has raised $118 million. The funding was raised in an Initial Coin Offering (ICO), and the objective of this funding is to support the development of a blockchain smartphone.
Through ICO, tech startups who are founded on cryptocurrency can raise funds by issuing virtual tokens to investors. Even though these kinds of offers were in popularity in the previous year, top market regulators from Europe have commented about these investments being extremely risky and highly speculative, and they have warned individuals and businesses who are trading in this.
Sirin has hired Lionel Messi as its brand ambassador. It has also disclosed that the company has raised money from around 5,600 people across the globe within the first 24 hours, and they will continue this offering for the next 12 days. Founder and CEO of Sirin, Moshe Hogeg, said, “These are our potential clients. We think they will be the first to buy the phones.”
This offering will fund the blockchain phone and a blockhain personal computer. According to the company, the phones should be in market by end of next year, and the phones have enhanced security and the ability to conduct fee-less transactions.
Hogeg further indicated that his actual target was to raise $75 million for developing the phone. The additional funds will help the company to invest more in sales and marketing and also bolster its production.