Synereo, an Israeli startup developing a blockchain-based decentralized social networking and content delivery platform, announced it has launched its second crowdfunding campaign. A day into the undertaking, which will run till October 30, the company has already raised a total of a little over $2 million.
The fundraiser is the second in a multi-phase financing strategy announced by the company in 2015. The raised sum will be used for further development of its technology, to scale up its operations and expand its team.
The funding campaign runs on three channels. The first one is the crowdfunding site Bnktothefuture.com, where Synereo offers to qualifying investors can purchase up to 12% of its shares. The minimum investment goal is €537 394. So far Synereo has raised €1 311 754 and is 122% overfunded only on this crowdfunding platform.
Another channel is the company’s own funding campaign page. There investors can buy AMPs – Synereo’s native network cryptocurrency and the third one is the Chinese bitcoin exchange Yunbi, which hosts the AMP sale for the Chinese blockchain community.
During the campaign Synereo will be offering the AMPs at a fixed price, with purchasing bonuses. The price will be increasing in three tiers.
The funding effort was launched just two days after Synereo announced it is “burning” half of the APIs it held in various electronic wallet worth around $146 million and permanently destroyed 731,108,937 AMPs.
Recently Synereo launched an alpha version of its decentralized social network, due to be developed further and released as a beta towards the end of 2017. The network functions without centralized servers, utilizing Synereo’s Technology Stack.
Crowdfunding through sale of cryptocurrencies and other digital tokens on cryptocurrency exchanges is usually employed by technological companies. Most recently the fintech eBoost announced the launch of the eBoost e-sports token and seeks crowdfunding through the crypcoturrency exchange Bittrex.