When Omise closed an Initial Coin Offering (ICO) of about $25 million, the real news wasn’t the amount raised by the Thailand-based fintech startup. The real news was that with it, Omise set a standard that makes ICOs a respectable way to gain funding for the entire ecosystem. Omise is a company that specializes in online payments, attempting to create a decentralized payment platform with Omise Go. Their user base currently serves clients in Thailand, but they also have operations in Japan and Singapore.
According to analysts and observers, the team of Omise made significant improvements to the ICOs process by selecting a group of current tools and made them work in an innovative way. Here’s how they do it:
First, Omise set a limit for the amount they will rise. Second, they hire a third-party finance consulting firm to inscript interested investors and suitors. After this, they’ll complete an auction to colocate 6.51 percent of the total float of OMG. Then, they set apart another percentage of their crypto currency float for future ICOs and investors, guaranteeing future development of OMG and OmiseGo. All this injects trust among venture capitalists for the ICO to finance tech startups.
“Unlike other sales, we didn’t want to raise our sale cap past $25 million because we don’t expect we need more money to accomplish our goal,” said Jun Hasegawa, CEO and founder of Omise.
Besides of the money coming from the ICO, Omise has raised support from Krungsri Finnovate, a subsidiary of the Bank of Ayudhya, Thailand for an undisclosed amount. The bank that it did it to “potentially support development of our digital products and services.”
The news had a positive impact in Omise’s market cap, which is up to $1 billion after the ICO. The company already raised $45.4 million dollars on private VC funding, and it is the first large startup of its kind to conduct an ICO that successful.
“Increased responsibility and control around ICOs from other companies alike may help rein in some of the skepticism and allow the tech community to embrace the undoubted potential of this model,” wrote Jon Russell on Techcrunch.
Reportedly, OmiseGo cryptocurrency, OMG, sold an initial 6.51% of its total float in this ICO, and they will automatically give another 5% to anyone who owns Ethereum. During the ICO, OMG was valued around $0.27; now, it is valued at $11, delivering a 40-fold return to anyone who invested in the ICO.