LGBT Foundation Avoids ICO to Remain Compliant with Regulators

LGBT Foundation Avoids ICO to Remain Compliant with Regulators

The LGBT Foundation, a Hong Kong-based not-for-profit which “aims to harness the power and potential of blockchain technology ” for the benefit of lesbian, gay, bisexual, and transgender communities worldwide, has reneged on its original plans to run an ICO fundraiser for its new, upcoming platform. 

Having explored the ICO option it has decided to instead partner with blockchain platform OST to launch its token to market directly.

For Christof Wittig, president of the LGBT Foundation, skipping on the ICO means “we’re saving a ton of time, money and technical resources.” Teaming up with OST means that they “launch and manage the LGBT Token rapidly, safely, and securely.” As well as being able to get to market quicker, Wittig feels that this method is “safer and fully compliant with financial regulations.

$4.6 trillion “Pink Economy”

The foundation hopes its token will gain broad adoption in the LGBT+ economy, currently estimated to be as large as $4.6 trillion. As well as allowing community members to support LGBT+ businesses, it will also allow for identity verification and safe interaction between “LGBT people in countries where it’s illegal to be ‘different’.”

One of the general benefits of an ICO is that, as well as raising funds you can also build a community and initial user base. It seems, however, that the LGBT Foundation believes that it will be able to compensate through a series of partnerships which it has signed ahead of launch. 

These include Hornet networks, the world’s “premier gay social network”, which is thought to bring access to 25 million potential users. Other partners include Revry “the LGBT answer to Netflix,” which reaches 70 million homes in more than 100 countries.

Jason Goldberg, the founder and CEO of OST said that he was “thrilled to announce our support for LGBT Token during Pride Month 2018” and that his team are “humbled and excited to support the LGBT Foundation’s mission to make our world a better place for all members of the LGBT+ community.”