By Andrei Skvarsky.
Brickblock, a Berlin-based firm building the first-ever platform to connect cryptocurrencies with real-world assets, aims to raise $50m in an initial coin offering (ICO) – a standard fundraising method used by cryptocurrency ventures – that is due to launch on October 31.
The ICO will involve sales of Brickblock tokens (BBTs) to be priced at between $0.36 and $0.48 depending on the status of buyers (some will be “select whitelisted” investors) and on the date of purchase – the price will go up gradually in the course of the 22-day offering, according to an announcement on the firm’s website.
Brickblock, whose emergent platform is based on Ethereum technology, raised $1m during a five-day pre-ICO token sale from about 800 investors this August.
The firm plans to offer the world’s first tokenised real estate project during the ICO – an apartment block in Berlin going on sale in December. BBT holders will be able to buy into the project before it is offered to the public.
Jakob Drzazga, co-founder of Brickblock, told EmergingMarkets.me by phone that blockchain-based sales and purchases of real estate are quicker and cheaper than taking the regular route. For instance, bypassing brokers and notaries saves time and money, and cross-border purchases are much easier as well.
The ICO closes on November 21, but there is going to be an additional one-week BBT sale in January 2018 with the BBTs priced at $0.60. The sale is due to be held after the apartment building has been sold, according to the Brickblock website announcement.