It is now possible for individuals to crowdfund projects directly through cryptocurrency offerings
New technologies like cryptocurrencies and the blockchain allow new ways for startups, as well as individuals, to get their initial funding. This is what a cryptocurrency entrepreneur did in order to fund his new company. Alex Masmej has just raised $20,000 after selling his personal tokens on the Ethereum network for a company that will be offering loans against non-fungible tokens.
He promoted the sale of these tokens in a block post, which he called the “Initial $ALEX Offering.” However, he had already made a previous announcement at the Ethereum Community Conference in March.
On April 12, Masmej tweeted to his more than 3,000 followers to let them know that the initial offering of $ALEX was sold for $20,000 among 29 investors. According to this crypto entrepreneur, this token is like “a blend between a small Income Sharing Agreement and a human IPO.” This means that every person that has purchased one of these personal tokens is entitled to 15% of Masmej’s income for the next three years to a maximum amount of $100,000. The funds will be distributed quarterly in Dai (DAI) or any equivalent stablecoin.
This action by Mesmej seems to be the first step in his plan for seeking co-founders for his idea to create a “mainstream-focused crypto startup.” His idea is to move back to San Francisco and look for co-founders there, and he explains, “With this $20,000 raise, I can move back to SF with a small safety net to maximize my potential. Also, this crisis could lower my living costs cheaper.” The crypto world seems to be experiencing a trend now of human IPOs that are gaining new territories in the industry. They have the same principle as the initial coin offering from companies and investors are putting their money into the efforts of an individual, rather than a company.