Please Wait....

    SA’s Wealth Migrate to launch $30m ICO aimed at global property

    By Stephen Timm: Editor on 7 December, 2017

    South African based global real estate platform Wealth Migrate plans to run an initial coin offering (ICO) early next year, to raise $30-million in an offering that will allow investors to invest in global property portfolios.

    Speaking to Ventureburn yesterday, the company’s founder and CEO Scott Picken said the ICO will allow investors to build “real wealth”.

    “People are getting tired of ICOs with wasteful dreams and want it (the tokens) to backed by something tangible,” he said.

    Picken wasn’t able to confirm a date when the ICO will open to investors, but was able to say that the ICO will be run through a company registered in Malta and will utilise its WealthE Coin.

    He pointed out that as the token doesn’t amount to a security, but rather that of a utility, Wealth Migrate won’t require a license from the Financial Services Board (FSB) to run the ICO.

    In all 20% of the tokens will be made available to be used as utility tokens, but 80% will be used as a store of wealth. Phase one of the ICO will involve putting the utility coin on offer, while Phase 2 will kick in when cryptocurrency exchanges are up and running, he said.

    People are getting tired of ICOs with wasteful dreams and want it (the tokens) to backed by something tangible, says Wealth Migrate founder

    Added to this, the ICO will also include elements of gamification, he said. For example, investors will be able to earn coins by participating in certain activities, such as training courses, he pointed out.

    In addition, he said documentary film maker Jeff Hays is working with Wealth Migrate to shoot a documentary on wealth creation.

    Wealth Migrate was founded in 2010 and has 60 employees at present. The company has since facilitated 1500 investment transactions totalling $66-million and involving investors from 46 countries, through its blockchain platform.

    Picken said a number of South Africans have also participated in these transactions — via Wealth Migrate’s partner, business advisory service PKF, which is registered with the FSB.

    While he conceded that this isn’t the “ideal way” to carry out equity crowdfunding in South African, it is the only way to do so under the current regulations.

    South Africa at present has no specific regulations on equity crowdfunding. Picken is one of the founding members of the African Crowdfunding Association, which is seeking to advocate for crowdfunding regulation on the continent.

    Story Page