Charity auction startup boosts transparency through blockchain
AidCoin raises $16.5m via ICO to make charity donations transparent through blockchain
A project to make charitable donations and subsequent fund management transparent by using blockchain has beaten its funding goal in record time as supporters purchased $16.5m of AidCoin tokens in under 90 minutes.
CharityStars, the online auction platform for the nonprofit sector, saw the huge potential offered to the charity sector of becoming more accountable during a time where the level of trust in the non-profit sector is questionable.
AidCoin allows charities to integrate a payment gateway and embeddable widget, called AIDPay, on their website that enables them to directly accept donations in different cryptocurrencies which are then instantly converted into AidCoin and thus making them transparent and trackable thanks to blockchain.
The AidCoin token sale finished on 16 January 2018, with the AID token (AID) distributed to participants at a rate of 1 ETH = 2,000 AID.
AID, an ERC20 compliant utility token that will provide transparency in the nonprofit sector, allows individuals to track their donations thanks to the AIDChain platform, an ecosystem of services for all actors involved in the nonprofit sector.
With a total hard cap of 14,333 ETH ($16.5 million USD at the time of close) the public token sale concluded within 90 minutes of commencing.
CEO and Co-founder of AidCoin and CharityStars, Francesco Nazari Fusetti said: “Recent charity scandals and an increasing lack of trust has led to donors becoming ever more reluctant to give to charities, resulting in immense fundraising struggles. The success of our token sale brings us one step closer to eradicating this issue for the good of causes that truly deserve widespread support.”
Founded in 2013, CharityStars has offices in Los Angeles, London, and Milan. CharityStars’ auctions are conducted through an online platform that features an array of luxury experiences and products which can be purchased through both fiat and cryptocurrencies, with proceeds going to partnering charities. AidCoin will leverage CharityStars’ established network of more than 40,000 donors, over 200 celebrities and 100+ brands to boost AidCoin and AidChain adoption.
The funds raised from the token sale will go towards fulfilling the AidCoin roadmap, with funding allocated as follows: 40% for product development; 30% for business development; 20% for communications and marketing, and 10% for reserve funds.
Nicolai Oster, Head of ICO at Bitcoin Suisse said: “The AidCoin project is an extremely worthwhile initiative that has the potential to increase transparency, regain trust, and overhaul the nonprofit sector. With the great success of the token sale, we believe that the team has a good foundation and ground for achieving their ambitious goal.”
“Blockchain technology offers an unparalleled first step in restoring the loss of confidence in nonprofits, and we are fully committed to driving the adoption throughout the sector as a whole. As the awareness of AidCoin continues to grow, I look forward to bringing both the blockchain sphere and the charity sector together for the greater good of both industries,” concluded Fusetti.