Neds, an Australia-based bookie, is preparing to launch an ICO, which aims to raise $55 million. The goal is to raise funds to expand the company further without having to rely on venture capital, etc. But ICOs are no strangers to frauds, and you can never be too careful when investing in any of them. However, Neds ICO is a bit different.
First, they are an already established and profitable business. Neds platform launched in October last year and it quickly became the go-to place for sports betting fans, especially if you like to wager on horse races. The founder of this company is Dean Shannon, an industry veteran and former chief executive of Ladbrokes.
Second, they have already dipped their toes into Bitcoin betting, so they are familiar with cryptocurrencies. You see, Neds integrated Bitcoin payments into their gambling platform in February this year, but had to shut this option down due to legal problems with the Northern Territory’s Racing Commission. The NT commission prohibits betting with cryptocurrencies, so Neds had to pause this service until they resolve the issue. This is currently in the review process, and Neds’ chiefs hope that they will get Bitcoin payments back soon.
Finally, Chris Ward, the chief digital officer of Neds, said in a recent interview that they were thinking about an ICO since launch. Therefore, this is not a rash or desperate decision.
Chris said, “We launched in October, and I think it was in December the idea came up. A lot of people in the business are in the tech space and have an appetite for crypto, and some of the team bought into Bitcoin and Ethereum years ago, so it’s something we followed.”
About Neds ICO
As we said before, Neds aims to raise $55 million from this ICO. They are asking their users to exchange their dollars for tokens called “nedscoins.” These tokens have two uses. Primarily, backers will be able to place bets with them. However, the other purpose will allow investors to rake in quarterly dividends. The amount they receive will be equal to 0.25% of Neds’ quarterly turnover.
We must say that all this sounds too good to be true. But then again, Neds is a legitimate company with a clean track record. I guess we will have to wait and see what becomes of this campaign.