Crowdfunding giant Indiegogo has given its approval for ICOs to be listed on its platform for the first time, in a move that will provide a significant boost to issuers.
The decision means companies raising capital through ICOs will now be able to access Indiegogo’s services for the first time, to utilize to one of the leading online crowdfunding platforms.
Thanks to an arrangement with collaborators MicroVentures, Indiegogo will allow organizations using the blockchain funding model to purchase Simple Agreement for Future Tokens, or SAFTs – a type of instrument that has been used successfully in a number of ICOs to date.
SAFTs allow ICO issuers to sell agreements in the first instance, for delivery of tokens at a later date, and has been used as a more flexible model for raising finance via the blockchain funding model.
According to MicroVentures, some $915,000 has already been raised from an initial listing on the crowdfunding platform, for the Fan Controlled Football League, a self-styled ‘disruptive model’ for American football.
The launch of an ICO on the platform for the first time is significant, given the prominence of Indiegogo in the crowdfunding space. It follows as the latest innovation at Indiegogo, only a year after a the platform diversified to allow equity funding models to list.
Some commentators have suggested this could be a beneficial move for Indiegogo, in helping establish its platform as a standard solution for those raising capital through ICOs.
ICOs, or initial coin offerings, have exploded in popularity in 2017, raising well in excess of $2 billion. While many have come in for criticism, and the sector drawn warnings from regulators, central banks and governments, the model has proved successful in matching companies with investors and utility tokens.
An Indiegogo spokesperson said the move to accept ICO listings was a natural continuation of their core business.
“For us, this is simply another way of doing what we’ve been working on for the past decade. … We’re ready to become the go-to platform for selling and investing in digital tokens and blockchain-based assets, and we can’t wait for you to join us.”