Zmine to issue 150m tokens in ICO
Zmine Holdings Ltd, a digital currency mining business fuelled by graphics processing units, plans to issue an initial coin offering (ICO) for 150 million digital tokens to expand its company.
The total supply of ZMN tokens is limited to 1 billion and the sale period is separated into two rounds, said Zmine chief executive Kasamapat Vithanwattana.
The first round of 500 million tokens will have a pre-sale of 100 million tokens; private sale of 100 million tokens; public sale of 150 million tokens; locked sale of 75 million tokens; and 75 million tokens planned to be used for the company's business operations.
The pre-sale already occurred between Jan 1 and March 31, while the public sale is expected to take place May 2-31, during which Zmine expects to raise 150 million baht, said Mr Kasamapat.
The second round of 500 million tokens will be locked with a smart contract, which will have to be activated by ZMN coin holders on May 1, 2019 to raise funds from digital tokens.
ICO transactions are similar to crowdfunding, whereby the issuer presents a business model to investors, but the key differences are that the raised funds are in the form of digital currencies using blockchain technology and the deals are enforced using smart contracts.
Founded in 2017, Zmine was established by a group of computer engineers who had an interest in encryption and decryption technology to develop an advanced system for cryptocurrency mining.
The company has since operated a business model called "We Rent Your Graphic Card [WRYGC]".
Under the WRYGC model, customers can bring their own graphic cards to the company for cryptocurrency mining operations and share the digital tokens received from the mining process between the card owners and the company without any management fee.
"Cryptocurrency mining has continued increasing as a result of immense interest since last year," said Mr Kasamapat.
"As the mining process requires time for monitoring and decryption, the rental model will help card owners save time."
Over the past 14 months, investors who brought their own graphic cards for rent received profit-sharing ranging 2-15%, he said.
The company has around 8,000 graphic cards in its GPU, valued at around 120 million baht.