Walimai plans to raise $11.5 million through a digital token sale to expand its technology and develop a customer loyalty program.
A Chinese start-up is aiming to raise $11.5 million in a digital token sale starting Tuesday.
The company, Walimai, is launching the sale in Singapore for funds to expand its technology and develop a loyalty program — both frequent explanations in the booming initial coin offering market. What makes this company different, though, is that its product isn’t financial technology like most of its ICO peers, but rather a play on the fast-moving consumer goods space.
Walimai created anti-counterfeit labels that use a smartphone app to let buyers confirm the authenticity of the product they’re buying. The labels can communicate directly with some phone, or they can be scanned via a QR code. A key feature of the labels, the company said, is that they’re physically tamper-proof because once they are taken off products, they stop working.
Issuing digital tokens through ICOs is an increasingly popular fundraising vehicle for start-ups where investors send some form of digital currency — usually bitcoin or rival token ether — to the companies. In exchange, they get an entirely new token that has some sort of assigned worth. That is, it can be used to redeem a service offered by the firms, or even theoretically give investors an equity stake in a company.