ViaBTC, one of the largest cryptocurrency mining pools in China, has finished its first high-value initial coin offering (ICO) using the Wormhole protocol and Bitcoin Cash chain on October 8. The exchange data shows that this is the first Bitcoin cash blockchain based ICO that raised $30 million in 2.2 hours, in spite of the continuous crypto bear market.
Founded in 2016, ViaBTC is the fifth largest mining pool which currently accounts for more than 10% market share of Bitcoin hashing power. It has 8 other competitive cryptocurrency pools, including BCH, LTC, DASH, ETH, ETC, ZEC,BTM and XMR. After securing a 20 million CNY funding in March led by Bitmain, ViaBTC launched its own crypto exchange – CoinEx.
The firm launched a new token known as Viabtc Token(VIAT) on October 1st. It refers to VIAT as a value-added services and privileges token. It is basically used as “gas” or a tool of value transfer. VIAT has a fixed supply of 2 billion tokens. 750 million tokens will be allocated via community support, including CoinEx VIP and CET users, and 250 million will be distributed via partners, and the remaining part will be released gradually as mining rewards.
On October 9th, Coinex users who trade VIAT tokens received an airdrop from the exchange’s own CET tokens.
According to ViaBTC’s white paper, 50% of VIAT tokens will be released and issued via the method called “DUO Mining” which gives ViaBTC miners regular mining payouts, but also an added payout of viat as well.
The white paper adds that VIAT will also be subject to a repurchasing plan and a burning process, “ViaBTC will buy back and “burn” VIAT with 20% of its quarterly revenue at the end of each quarter. This will reduce the total amount of VIAT steadily on a benign deflation model. ” The token can also be used to pay the pool fee with extra privileges, as well as can be used to pay for miner purchase, transaction acceleration and ViaBTC souvenirs.
Jihan Wu, the co-founder and CEO of Bitmain, and Roger Ver or “Bitcoin Jesus”, a controversial Bitcoin Cash evangelist, are among the advisers for this newly-launched crypto.
This is not the first mining pool to launch a token. In August, Huobi’s mining pool has issued its native token called HPT and some other smaller pools like UU Pool and BW Pool have also rolled out corresponding tokens. Such tokens are becoming an increasingly popular way to compensate miners.
*Edited based on an article from 8btc.