Two cryptocurrency start-ups have appointed DigitalX (ASX: DCC) to act as corporate advisor for their respective initial coin offerings (ICO), bypassing traditional and highly rigorous capital raising processes.
The first ICO is for INS Ecosystem’s, which kicks-off today 4 December, with the company aiming to sell 30 million tokens at a US$1.60 issue price by 25 December.
INS Ecosystem provides a direct-order grocery platform that allows customers to purchase goods directly from manufacturers in an “efficient and affordable” manner.
According to DigitalX chief executive officer Leigh Travers, INS Ecosystem’s creators also developed Russia’s largest venture-backed online delivery service Instamart.
Mr Travers said INS Ecosystem had already experienced a lot of interest from suppliers around the world.
The global grocery market has been estimated at A$8.5 trillion.
In return for its advisory services to INS Ecosystem, DigitalX will receive 250,000 INS tokens.
The second company DigitalX will be providing ICO advisory services for is CoinPoker which has developed a platform for online poker games that are “provably fair and true”.
CoinPoker uses Blockchain tools to generate random numbers and offer smart contract technology, which have strong support from the online poker community.
Via the ICO, CoinPoker will offer 375 million tokens to the market. The company plans to use the tokens as the platform’s official currency.
In return for its ICO advisory services to CoinPoker, DigitalX will gain 7.5 million CoinPoker tokens, plus US$10,000 in a monthly mandate fee and remuneration for introducing CoinPoker to its cryptocurrency investor network.
These latest two clients join DigitalX’s ICO client portfolio which includes Power Ledger, Etherparty, Bankera, BitCar and SingularityNET.
“The digital currency ecosystem has been expanding rapidly this year,” Mr Travers said, adding “DigitalX has an extensive network of investors with large digital currency holdings, making us an idea conduit to connect these investors with new ventures raising funds via and ICO.”
By late afternoon trade, DigitalX’s stock had shot up more than 9% to sit at A$0.24.