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Following the lack lustre performance so far of its PROPX initial coin offering (ICO) SA startup Prosperiprop has added a new offering to its current ICO.
The offering will allow investors to invest in software that will help financial institutions to offer property investment products via the blockchain.
Prosperiprop CEO Llew Morkel told Ventureburn on Tuesday that the new opportunity Nanochain PROPX will allow ProsperiProp to become the supplier of a financial technologies platform that will be implemented by licensed financial institutions.
The PROPX NanoChain will be developed for ProsperiProp by Lucid Ocean run by Jonathan Crossland and will be funded by a PROPX token sale currently running on the company’s website. PROPX tokens are the platform currency which clients will use to pay for platform services, creating demand for the token.
The introduction of the new offering follows the failure of the PROPX ICO to take off.
Morkel added that though the current ICO was initially intended to come to an end by 31 October, the startup plans to extend its current ICO on Prosperiprop.com by 20 days to allow the startup to introduce the new approach to the market.
The website will be updated from 25 October he said, adding that the new offering does not amount to a completely new ICO, but will rather form part of the existing PROPX ICO.
The new opportunity Nanochain PROPX allows ProsperiProp to become the supplier of a financial technologies platform that will be implemented by licensed financial institutions
Morkel said the new opportunity follows feedback the startup received from ICO market commentators and the realisation that the startup had made two key mistakes.
The first mistake was for the startup to position itself as a financial services provider. “This fact alone would make it very difficult and costly to penetrate, and serve global consumer markets,” he said.
Secondly, he said the PROPX product that the startup put forward was technically too complex. “ICO supporters struggled to understand the value we offer and how they stand to profit from an investment,” he added.
He said when corporates use the platform they will pay to use it with PROPX tokens. This creates demand for the token, he added.
In addition, unlike in the past where Prosperirprop would have to ensure the startup complied with regulatory compliance when running an ICO, the burden of regulatory compliance in each country now fall on the corporate client that uses PROPX’s software to create the investment opportunities, he said.
He said he believed the PROPX Nanochain option will also be easier to understand. “We create and supply managed software solutions. We get paid in PROPX for delivering the service. PROPX token owners benefit from the demand that is created when corporate clients use the platform,” he explained.
“We won’t need to win the trust of international consumers. Our clients will market to their customers,” he added.
When asked what would happen to the tokens taken investors bought in the current ICO, Morkel said the startup had sent out communication to investors on this.
“In fact, most of our supporters have a much better understanding of the product and how we plan to drive PROPX token value,” he said.