RenRen Inc Set to Launch ICO
The once highly popular Chinese social media platform and online finance business, RenRen, has announced that it wants to use an ICO to raise funds. The ICO project will be called RRCoin. As soon as this news circulated around the cryptosphere, its share price took a giant leap. In fact, it shot up by 47.39% on the New York Stock Exchange (NYSE).
Just like Facebook, RenRen is becoming an old-school platform. The younger generations, particularly the millennials, are opting for newer social media outlets, such as WeChat in China. Maybe this move is part of a larger strategy to keep the old platform alive. Users who will share content on its network will be paid for their contributions, just like the relatively new Steemit Platform, It will be different from steemit, because it will allow advertising.
Plans, According to Whitepaper
The whitepaper for the ICO project (available only in Chinese at the moment) reveals that trading patterns, users’ online behavior, and all their interactions will be stored on a blockchain. A beta version of RRCoin is scheduled to come out sometime around the 2nd quarter of this year. There’ll be a final total of 1 billion coins. RenRen plans to allot 40% of the coins to the ICO sale, a quarter (25%) of the total coins will go to the RRCoin foundation, one-fifth (20%) will be invested in business operations, and 15% will be set aside for development and marketing purposes.
When a company announces any future association or link to the cryptocurrency market, they usually manage to get a lot of attention. ICOs brought in billions of dollars in 2017. And, old dot-com companies like RenRen are looking to take advantage of this trend in order to stay relevant. Joseph Chen, the company’s CEO, believes that blockchain technology, along with Artificial Intelligence, will be the leading and most promising industries as we progress into the future.
Other Companies Jumping On the Crypto-Bandwagon
RenRen is not the only company that has jumped on the crypto-market’s bandwagon. Xunlei Networking Technologies, Shenzhen’s online video streaming company, launched OneCoin sometime in October 2017. Although it quickly became notorious for being a Ponzi scheme, it did contribute to Xunlei becoming a very successful stock on Nasdaq.
Chinese companies entering the crypto-world have certainly made a strong impression on the crypto-market. Even as Chinese regulators cracked down cryptocurrency exchanges, the crypto-economy in China continued to thrive mainly through peer-to-peer crypto-exchanges. The crypto-world could breathe new life into companies like RenRen, which had begun to fade away as newer technologies began to take over their spots.