During the initial coin offering, Bancor has collected about $117 million.
Traders believe that the success of Bancor might push the Ethereum exchange rate higher. Bancor’s ICO was held on 12 June. Within the first hour of the crowdfunding campaign the project attracted more than $83 million. The ICO was conducted in ethers. As of 13 June, the amount of raised funds stood at 317,381 ETH. Nearly 11,000 buyers participated in the ICO, among them the investment fund Blockchain Capital. “We are thrilled to invest in such an innovative and thoughtful project as Bancor. What attracted us was first and foremost the team. With two decades of experience in end-user applications, a strong network of supporters and advisers, the Bancor team has exactly the kind of DNA we want to see more of in the Blockchain space to help bring the value revolution to mass market.” Said Brad Stephens, Managing Partner at Blockchain Capital.
The previous projects of the Bancor development team was the video hosting MetaCafe and the music app Mytopia, with about 50 million and 10 million active users respectively. According to the project documentation, 40% of the raised funds will go to software development, 20% will be directed to the ETH reserve fund, 12% will be spent on marketing and business development, 8% and 5% of proceeds will go to cover operational and legal expenses, and 5% to be spent on unexpected expenses. During the ICO, 50% of the Bancor tokens were distributed. The remaining 10% belong to the development team, advisors and early contributors, 20% are allocated among community grants and partnerships, another 20% were directed to the long-term foundation budget.
The Bancor protocol is a standard that allows anyone to easily create completely liquid “smart tokens” that calculate their own prices & enable a single party to convert any token to another. The platform is built on the basis of Ethereum smart contracts. Some traders predicted that a successful Bancor ICO would push the rate of ether up. Nonetheless, the impact of the Bancor crowd-funding campaign on the ETH course is difficult to judge, because the cryptocurrency market underwent a correction on 12 and 13 June after a rapid rally over the past weekend. But compared to other cryptocurrencies, ETH’s decline could be characterised as slight.