While the date of GoNetwork’s ICO has yet to be announced, the hype around the project continues to grow. The project’s telegram group has surged to just short of 60,000 members, making it one of the highest profile ICOs in the current market.
GoNetwork is seeking to create a “scalable, low cost mobile first network infrastructure for Ethereum.” The team plans to build a network for off-chain Ethereum transactions similar to the Bitcoin Lightning Network.
Dutch Auction ICO
The project leads were the winners of last year’s ETHWaterloo event, the world’s largest Ethereum hackathon. They have managed to leverage that publicity to build a large following ahead of the token sale.
The ICO is being conducted as a Dutch Auction, an allocation method that has been used for just two token sales to date and which allows investors to bid for tokens at the highest price they are willing to pay.
Tokens are then allocated in descending order starting from the highest bid until all available tokens have been allocated. The price is subsequently set at the lowest bid amongst those receiving tokens. While a $30 million hard cap has been mentioned, a Dutch auction could theoretically lead to far more capital being raised.
Besides the uncertainty surrounding a Dutch auction, a screenshot of a Telegram conversation allegedly involving leading members of the project was widely shared recently on Reddit, appearing to show a team more concerned with raising money than building a product.
The authenticity of this screenshot has not been established, however. At the time of writing, no formal comment in relation to the allegation has been made on the team’s Telegram channel.