New York –Augmate, the device management platform, has expanded its initial coin offering (ICO) onto Crowdfunder today. This move marks the first ICO on the crowdfunding site and a milestone for both companies. The offering, organized as a security token in compliance with the recent SEC guidance on ICOs, offers investors an opportunity to own part of a unique IoT device management platform powered by blockchain.
“We’re thrilled and humbled to be the first ICO on Crowdfunder, as we continue to build a system that will help make smart products more manageable and secure,” said Pete Wassell, CEO and founder of Augmate. “The number of IoT devices in homes is set to skyrocket in the coming years, as is the use of blockchain technology across many industries. Growing the company through an ICO and doing it as a security token is true to our business, and to our current and future investors,” he added.
The move to offer a security token instead of a utility token means Augmate will be able to attract investors that believe in the company and its future. The SEC recently explained that characterizing a cryptocurrency as a utility token doesn’t excuse it from being regulated as an investment security. Augmate followed this advice. As for Crowdfunder, following the rules and regulations in investment was a key factor in choosing Augmate as its first ICO.
“After consulting with regulatory bodies and the most knowledgeable law firms in the country, we’ve put forth a way to run an ICO in a fully compliant manner,” said Jean-Michel Arnout, Crowdfunder CEO.“ICOs represent a new tool for companies to raise money, grow and create jobs. Augmate has a strong reputation in the marketplace, and investor base that’s among the best in the business. We’re happy to open up this exciting new opportunity to our network of accredited investors,” she added.
Augmate will use the ICO funding to increase the use of blockchain in its platform. The company has started developing its first complete device management platform or IoT using blockchain technology.