To date, there are more than 140 million dollars circulating within the “cryptocurrency space.” If the term cryptocurrency sounds foreign to you, you are definitely not alone. Even with all of that money involved, there are still quite a few barriers to wider understanding and larger mainstream adoption of cryptocurrencies. The fact is, cryptocurrency is a completely new way of envisioning money. It will take some time and effort for many to grasp and apply the concepts involved (see our initial post on bitcoin for a refresher). Along with education and tangible real-world application of the technology involved, many also believe celebrity endorsements might help speed up the push toward mass adoption.
A short time before his big win against Conor McGregor, Floyd Mayweather took to social media with some interesting posts about his involvement in cryptocurrency. He even went as far as to give himself the moniker “Floyd Crypto Mayweather.”
An initial coin offering (ICO) is a means of crowdfunding within the crypto space. Newly formed blockchain companies offer early backers of their emerging cryptocurrency an IOU of sorts in exchange for investment funding (usually in the form of more established cryptocurrencies like Bitcoin, Ethereum, etc.). Think of it as a sort of Kickstarter but for crypto startups. These companies usually promise to use the funds to build and/or leverage blockchain technology to solve a particular problem.
Mayweather, so far, has promoted initial coin offerings of both Stox and Hubii Network. According to the Stox website, they are looking to build a platform using blockchain technology to allow “every day people . . . to predict and trade the outcome of events in almost any imaginable category: Finance, sports, politics and even the weather.”
The Hubii network seeks to use blockchain tech to establish a “decentralised content marketplace that facilitates transactions between creators, distributors and consumers.”
While both are very interesting ideas, they are both still a long way from realizing these lofty goals. Nevertheless, Stox was able to raise 34 million dollars in 34 hours. Hubii raised more than 6 million in the same amount of time. The record for the most money raised for an ICO is held currently by Filecoin (a blockchain based cloud file storage company) with 257 million dollars raised over the course of a month. No surprise then that “Floyd Crypto Mayweather” is promoting his investments in these new financial tech platforms. With all the money moving into this area, it looks like it’s only a matter of time before the masses follow.