BitCar, a luxury car investment startup, recently had their initial coin offering but didn't raise as much as they were originally hoping for.
BitCar is creating a blockchain platform that will offer cryptocurrency payments in exchange for small pieces of ownership for collectible car brands like Ferrari. They launched their initial coin offer just last year with hopes to raise somewhere around $25 million by the start of this year.
BitCar was hoping to grow their currency and become the main cryptocurrency used throughout the auto industry.
Through their platform investors could pay using the cryptocurrency for a position of a luxury car, which BitCar would buy on their behalf and hold for 15 years when the car would gain in value enough to then sell.
Based out of Australia, BitCar set themselves up in Singapore due to regulations and raised $6.5 million during their token pre-sale.
Then BitCar was publically sold for around $3 million, bringing their total to $9.5 million, which was still is short of their overall goal.
Initially, one token was valued at $0.10 and currently, it's being traded for $0.89.
BitCar's management recently stated the slow rise in price will cause the company to re-assess.
“Due to the smaller raise, BitCar has decided to burn unsold tokens from the ICO –– thus reducing the circulating and total supply,” the company said.
BitCar will start getting rid of their excess expenses and will begin reducing the availability of the tokens they have yet to sell.
BitCar's founders also plan to burn through 50% of the already allocated tokens.
Even though the company didn't raise enough to meet their target goal, they still have $9 million in cryptocurrency and cash saved away to help develop their luxury car investment platform.
“The BitCar Platform is currently undergoing development to be updated to a decentralized platform, users will be onboarded when the platform is live so we will be receiving metrics on user data then,” the company told Stockhead.
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