A PEER-TO-PEER platform that had planned to build an IOU credit lending system using the Ethereum digital currency is planning a relaunch after failing to raise the necessary funds using an initial coin offering (ICO).
Sikoba, founded by Luxembourg-based financial consultant and researcher Aleksander Kampa, was offering Ethereum tokens in return for backing a platform that provides a P2P IOU system, extending lines of credit to users who know each other around the world.
But after failing to raise the minimum 5,500ETH needed, it has said it would refocus the project.
Most funders have reclaimed money they contributed since the launch of the project in May 2017, and any unclaimed funds will now be provided as tokens on the platform.
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“At the beginning of January 2018, we have clawed back unclaimed funds from the token presale that ended in May 2017,” a Sikoba statement said.
“Participants can no longer reclaim their contributions, but will be given tokens instead – exact amounts to be decided in the coming weeks.
“Some of the funds were used by the company to repay debt, the majority will be used for product development.”
Crypto or digital currencies such as Bitcoin or Ethereum have gained public attention recently amid ICOs— a fundraising that rewards investors with supposedly-tradeable tokens in return for supporting a business using the blockchain technology behind cryptocurrency. Some providers are looking to combine the principle of P2P with cryptocurrencies.
All argue that using blockchain technology is faster than traditional banking or P2P and can help those particularly in developing countries where the credit scoring or financial system may not
be as advanced.
Regulators such as the UK’s Financial Conduct Authority have warned this area is high risk and
unregulated as there is no guarantee of returns or that the ICO will be a success.