On Tuesday Malta-based blockchain company Palladium launched the world’s first Initial Convertible Coin Offering (ICCO) in partnership with US-based cryptocurrency exchange Bittrex and eSports betting platform Unikrn.
The ICCO will involve a sale of a “tokenized convertible warrant” that will allow users to convert the token into shares of the company three years after issuance — a feature that differs the offering from a traditional Initial Coin Offering (ICO). The pre-sale of Palladium tokens has already started, while subscription of the tokenized securities will run from July 25 to September 30.
The fundraising goal is €150 million. Some 50% of the proceeds will be used for a planned acquisition of a controlling interest in an unspecified European bank. Around 35% of the accumulated funds will be used for the development of a new cryptocurrency exchange, which will operate under the regulation of Malta Financial Services Authority. The remainder 15% will go towards “strategic investments in financial services and blockchain companies complementing Palladium’s business.”
“We expect this project, which will create more than 100 job opportunities, to be a historic landmark and to bridge the gap between traditional financial services and cryptocurrencies,” – said Palladium founder and chairman Paolo Catalfamo.
The ICCO was launched in the presence of Malta’s Prime Minister Joseph Muscat at the Malta Stock Exchange just a few days following the parliament’s final approval of 3 cryptocurrency and blockchain-related bills.
Bittrex’s participation in Palladium’s project emerges less than a week after the US-based crypto exchange announced it will launch another virtual currency trading platform for EU citizens in co-operation with UK-based fintech firm invest.com.