Civil is a blockchain startup that aims to disrupt media. The company plans to offer its crypto token to various investors irrespective of their accreditation.
This decision is contrary to current policy regarding prudent ICO operation and token sales.
Token Sales Models
ICOs continuously spark vigorous debate. The core idea behind ICOs is funding a new platform. Companies achieve this by selling crypto tokens to any community member wanting to purchase them. This concept is highly controversial.
Therefore, this becomes more apparent as the U.S. SEC (Securities and Exchange Commission) and the other authorities debate and deliberate over the rules that should be enforced to protect investors.
Consequently, founders, particularly in the US, focus their fundraising efforts only on individuals considered accredited investors by regulators.
This is the reason why Civil’s decision to open their ICO to everyone might land them in trouble.
Matthew Iles is the CEO of Civil. He said, “There’s a lot of things that keep me up at night but when you work in a space as uncertain as this, there’s a lot of uncertainty that goes beyond just regulatory uncertainty.”
Civil employs the consumer token framework which was created by the Brooklyn Project initiated by ConsenSys.
“We’re going to be providing ways, easy ways, for people in the first days of the network launch to essentially learn how to vote with their token, use our app and become trained.”
Moreover, Civil aims to build actual uses rather than speculation. The company expects the participants to complete a questionnaire to assess their knowledge regarding the functions of tokens and the blockchain.
Furthermore, the buyers will not be able to sell the tokens until they establish prior use of their wallet. Civil calls this “proof-of-use.”
Iles believes that the real focus is on defining a new business model for journalism. This implies having a platform for people to engage with each other and participate.
The platform raised $5 million in venture funding from ConsenSys Ventures and aims to attain the hard cap of $24 million.
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