SiamSquared Technologies, a Thai startup and developer of the StockRadars mobile application, plans to raise funds through an initial coin offering (ICO) worth US$12 million (379 million baht), with a pre-sale scheduled for March 22.
The startup will launch a digital token named carboneum, with a quantity of 120 million tokens issued, said Max Kortrakul, chief executive and co-founder of SiamSquared Technologies.
The digital token is to be sold at a value of 10 cents (3.2 baht), and the raised funds will be used to develop the startup's social trading platform, said Mr Max.
An official sale is slated for April 22.
Three months after the ICO is complete, there is a plan to launch carboneum trading in domestic and international markets, he said.
A social trading platform, named CoinRadar, is an open-source platform where investors are able to trade digital currencies through automatic trading, for which a 10% follow-up fee on profit will be charged.
"An advantage of such platforms is how they allow investors to invest in accordance with leading investors and follow them through robotics and algorithm systems," said Mr Max.
A 10% fee will be imposed once an investor makes trading profit, but if a loss is incurred then the fee will be waived."
"This trading system provides a solution for investors who want to trade in patterns similar to other investors, but they will have to shoulder investment risks," he said.
Investors are also able to observe trading strategies among leading investors as the system is transparent, said Mr Max.
This ICO offering could be categorised as a utility ICO as those using the carboneum token for transactions via the social trading platform will be offered a 50% discount for the first year, a 25% discount for the second year, and a 10% discount for the third year. Afterward, an 8% discount will be applied.
ICO returns could be in the form of a utility such as a coupon used to buy products or services, the right to own a specific asset, or the right to receive revenue or profit-sharing without engaging in day-to-day operations, according to the Securities and Exchange Commission.
Funds raised from an ICO will also be allocated to marketing and business development, platform and protocol development, as well as research and consultancy fee.
As of Jan 7, there are 1,384 digital currencies available globally and the company's CoinRadar platform will initially offer investors the option to trade well-known digital currencies.
