Bitcoin Growth Fund (BGF), a blockchain-based startup fund, has raised $2.5 million (Rs 16 crore) as part of its initial coin offering (ICO), a company statement said.
An ICO is like an initial public offering where investors get coins/tokens instead of shares in a company.
The fund launched the ICO on 27 April in Bangkok, and has received $1.6 million in investment from retail investors globally, the statement added. The firm aims to raise a total of $32 million.
BGF is a blockchain-based venture capital fund where regular / small investors invest into the fund by buying tokens named ‘Mcaps’ and the funds collected are invested in mining various cryptocurrencies like dash, ethereum, monero, litecoin, Z-cash, bitcoin and others.
A part of the fund will also be further invested in the upcoming ICO blockchain projects. Mcap owners are paid monthly dividends based on returns earned from investment in these activities. These ICOs allow entrepreneurs to raise seed capital for their ventures without paying the fees associated with crowdfunding.
“BGF is a liquid fund targeting investments in crypto-currency mining and startup ecosystem. Mcap owners are entitled to monthly payouts based on fund’s performance. Token owners can also trade and exchange these tokens amongst themselves and other users anytime,” said Arvind Sehmay, director of communications at BGF.
Bitcoin, which was launched in 2009, is often described as the first cryptocurrency, even though prior systems existed. Cryptocurrency means money that is made hidden and private—and therefore secure—by means of encryption or coding. Blockchain is the technology behind cryptocurrencies.
In February this year, Bitcoin startups Zebpay, Unocoin, Coinsecure and SearchTrade had come together to form the Digital Asset and Blockchain Foundation of India (DABFI) for the “orderly and transparent growth of the virtual currency market.” The organisation will also look to create awareness about the benefits and risks of cryptocurrencies, liaise with regulators and get clarity on taxation, attract investment, and set up incubators.