In a previously unprecedented move, Bancor announced that they raised $153 million during its Token Generation Event (TGE), which took place about a year ago. At the conclusion of the event, tokens were issued immediately to all contributors.
Co-founder of Bancor, Galia Benartzi, said, “Bancor is deeply grateful to our vast community for its support in making the project’s launch an astronomical success. Together, we made history as the world’s largest crowd sale to date, spurring the most significant spike in transactions the Ethereum ecosystem has ever seen.
As Bancor launches into its development phase with substantial initial funding, we can accelerate our plans to transform the industry with a platform that enables anyone to easily create a viable currency for their community or project, as well as strengthen BNT with a large reserve, buy back program, and partnership grants. Our expansion begins today.”
Bancor provides the ability to create smart tokens, which allows for functionality into cryptocurrencies, such as Bitcoin. These tokens can be taken into reserve and traded directly or instantly exchanged for other tokens on the networks, leading to a higher utility and liquidity factor.
Galia Benatrzi explains further, “Bancor Network Token (BNT) holders can easily exchange their smart tokens for others in the network. BNT will serve as the reserve currency for new smart tokens created by anyone on the Bancor platform, capturing the network effect of the ecosystem’s growth. Bancor’s system allows tokens to be traded directly through their smart contracts, without the need for an exchange, providing a new solution to the liquidity limitations that have historically prevented the spectrum of user-generated currencies from emerging.
The TGE brought in nearly 11 thousand buyers, and more than 15 thousand transactions were sent to the address for purchase while the event was happening. Half of the total tokens made were sold to the public while the others were allocated for other uses.
Bancor explains that the proceeds will be utilized as follows: 40% toward software development, 20% as an Ethereum reserve for BNT, 12% toward business and marketing development, 10% for seeding token changes and exchange-traded funds, 8% for costs of operation, 5% for legal needs, and 5% for other purposes.
Bancor announced their plans to accelerate specific parts of Project Roadmap, which can be viewed and commented on at the Trello website.
“Bancor is delighted to move into an accelerated development phase, thanks to the enormous support of our contributors in making our Token Generation Event a momentous success. It is with great pride that we take our next steps and expand our ambitious plans, including adding talent to our already world-class development team, and empowering communities internationally to adopt smart tokens for their networks,” said Galia Benartzi.
Bancor protocol is a standard for smart tokens, a new way for making cryptocurrency intrinsically tradable. Bancor started on the Ethereum blockchain, utilizing a reserve method to enable built-in price discovery. The protocol creates an assest exchange ecosystem that unlocks user information, allowing for great functionality.