Origin Protocol, a start-up building a white-label platform for sharing economy-based businesses, has raised $28.5 million from strategic partners.
This follows an initial investment round of $3 million in December last year which was led by Pantera Capital. The latest funding round means the company now counts many of the most respected investors in the crypto industry amongst its investors including BlockTower Capital, Garry Tan, Kamal Ravikant, BlockAsset and Spartan Group.
No Public Sale Announcement
Despite the fact that it has still not announced a public sale, Origin has amassed a large following amongst retail investors. Its Telegram group now includes 23,000 members, many of whom are wanting to know if and when they can buy tokens.
It appears that regulatory uncertainty may be the principal reason for which the project team appears reticent to proceed with details on a public token sale. Origin is located in the US and its tokens may be at risk of being classified as securities.
The latest announcement stated that “in order to stay fully compliant with all US and international regulations, our Strategic Sale was unfortunately limited to accredited investors due to the fact that our platform is still under heavy development.”
It went on to say that “…we have multiple projects currently in play that are focused on giving the broader community an ability to participate in our platform in a meaningful way. More details will be shared in the coming weeks and months as our platform approaches a Mainnet launch.”
This may point to an airdrop, or to a public token sale after the platform has been launched. Presumably, once a decentralised platform is operational, the tokens are no longer at risk of being classified as securities.
However, if that is the case, it implies that only accredited investors can invest during the development phase of a project, leaving retail investors out in the cold.