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HomeNewsBTSE Eying to Raise $50 Million with an Exchange Token Sale

BTSE Eying to Raise $50 Million with an Exchange Token Sale

Crypto exchange BTSE is planning to raise $50 million by selling an exchange specific digital token.

Unlike most of the tokens that were released on Ethereum blockchain, the Dubai-based exchange chooses Liquid Network, a sidechain on Bitcoin’s blockchain developed by Blockstream, to issue its token.

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The circulated pitch deck on the internet shows that each token will be valued at $1 initially, meaning the company will sell 50 million tokens while the total circulation will be capped at 200 million.

Keep the circulation in control

Similar to other exchange tokens, including Binance Coin, BTSE will also buy back its tokens and destroy 100 million of it eventually, to control the circulation of the token.

“Starting three months from token launch, we will use 30% of all revenue to buy back and burn tokens. BTSE will eventually destroy one-hundred million BTSE tokens, leaving one-hundred million remaining in circulation.”

The exchange is planning to launch the token sale in March next year and will put a minimum investment limit of $150,000.

The pitch deck also outlined that raised proceeds will be utilized in “user acquisition to increase overall platform revenue, platform development and liquidity, as well as expansion into lending, OTC and mining markets.”

BTSE is the first exchange to launch such a token sale on a Bitcoin sidechain. This came after the week-old announcement of the exchange to integrate Blockstream’s Liquid versions of bitcoin and the dollar-pegged token USDT.

The exchange also launched a Monero-backed futures instrument at the end of October.

“The Liquid Network provides a reliable platform for token issuance that benefits from bitcoin’s stability and security characteristics,” Lina Seiche, global marketing director at BTSE, told Coindesk. “Issuing tokens on Liquid is further much less complicated than on Ethereum, which mitigates the risk of smart contract bugs and makes exchange integrations easier as well.”


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