Binance has raised $12 million in commitments for a token presale via its crowdequity platform, Republic which helps ICO issuers manage token sales that were spun out of AngelList.
The money raise program was led by NEO Global Capital, an affiliate of the public blockchain project of the same name, and Binance Labs, the investing division of cryptocurrency exchange provider Binance.
The program also drew support from East Chain Co., Jeffrey Tarrant, and Passport Capital.
The initial raise is part of Republic's interest in raising as much as $92 million total selling regarding its crypto token, which is yet to be announced a public sale.
A statement released by Kendrick Nguyen, Co-founder of Republic, states that "Essentially it's us going IPO without going IPO. We will be doing a combination of Reg D, Reg S and Reg A+ to make sure our tokens are widely available, irrespective of income or net worth in the U.S. and beyond."
Republic's whole schtick will offer equity options, including tokens to any investor.
In an email, written by Ella Zhang, head of Binance Labs, to CoinDesk states that "Republic brings new investment opportunities for retail investors to participate in well-curated startups. Binance and the Labs' teams are working towards the freedom of value-exchange, which we believe Republic will shed light on."
But still, none of the investors have their Republic crypto tokens yet. Any investor can buy token through the mechanism known as mechanism known as Simple Agreement for Future Equity and Security Tokens (SAFEST).
SAFEST work through a process that includes, first when the token is ready, then the pre-sale investors will have the option regarding taking their full investment in token form or up to 20 percent of their investment in equity. Further, if for any reason Republic fails to launch the token, then investors can convert all their investment into equity.