Dubai-based cryptocurrency exchange BTSE plans to raise $50 million through the sale of tokens in the Bitcoin Liquid Network sidechain developed by Blockstream.
BTSE plans to sell 50 million tokens worth $1 each. The launch of the offer is planned for March 2020, and a total of 200 million tokens will be issued, of which the company plans to eventually buy back and burn 100 million tokens in circulation.
“The funds raised will be used to attract users to increase overall revenue and develop the platform, increase liquidity, and expand the lending and OTC markets. The minimum investment amount is $150,000, ” the company says.
With sidechains such as Liquid and RSK, an asset can be locked in the main Bitcoin network and then sold in the child network, and Vice versa. This allows you to perform complex operations, such as creating smart contracts and issuing tokens in the sidechain, without interfering with the Bitcoin blockchain.
“Liquid Network provides a reliable platform for issuing tokens that takes advantage of the stability and security of Bitcoin,” said Lina Seiche, marketing Director at BTSE. “Issuing tokens on Liquid is less complicated than on Ethereum, which reduces the risk of smart contract errors and simplifies integration with our platform.”
BTSE will use revenue streams generated from platform usage fees and other operations to buy back tokens by the end of 2021.
“Three months after the token issue, we will use 30% of all revenue to buy back and burn tokens. BTSE will eventually destroy one hundred million BTSE tokens, with one hundred million remaining in circulation, ” BTSE said in a statement.
BTSE expects the site’s revenue to grow to $103.5 million next year and reach $323.4 million in 2021. BTSE currently supports trading BTC, ETH, LTC, and XMR, as well as tusd and USDC stablecoins.
In the summer, it was reported that another version of the usdt stablecoin of the Tether project will appear
on the Bitcoin liquid Network sidechain. In July, Blockstream launched
atomic swaps on the Liquid sidechain. Last fall, Blockstream announced the launch of payments via Liquid, and in March, The company released a wallet for sidechain users.