An Australian 'crypto for cars' company just raised $6 million in an offshore ICO

SuppliedBitCar co-founder Gov Vak Ek

A Perth-based business that wants to use cyptocurrency and blockchain to create shared investments in luxury sports cars has managed to raise around $AU6.1 million in a pre-Initial Coin Offering (ICO) in Singapore.

Blockchain company is seeking to raise $25 million for its project and sold 75 million BITCAR tokens, worth $SG6.5 billion, before the ICO begins in Singapore this afternoon, offering a maximum of 175 million tokens.

The business will now set up in Singapore for tax and regulatory purposes as regulators in Australia still grapple with the burgeoning cryptocurrency market.

BitCar is developing a Blockchain platform that offers cryptocurrency payments for fractional ownership of collectible hyper and classic car brands such as Ferrari, Lamborghini and Bugatti.

The business plans to store or display the cars it buys on behalf of investors for up to 15 years, hoping they will appreciate in value before selling them.

BitCar co-founder Dr. Gov Van Ek, who was involved in Australia’s first ICO, a $AU34 million raise by Perth-based solar energy trader Power Ledger last year, via a blockchain business he also co-founded, Ledger Assets, has signed partnership deals with luxury crypto investment traders such as UK-based Moonlambos and Dadiani Syndicate, which deal in everything from private jets to superyachts, art, watches and gold bullion using cryptocurrencies.

Moonlambos currently accepts Bitcoin and Ethereum, and will take on Eltcoin and BitCar in early 2018.

BitCar’s goal is to be the automotive industry’s main cryptocurrency.

“BitCar’s platform is designed to allow users to peg their crypto to scarce hard assets, like rare and exotic cars, some of which have outperformed gold, stocks and property over the past decade,” Van Ek said.

The business was targeting high-end vehicles for their relative price stability.

“The high-end car sector is generally more stable than the cryptocurrency market, which is why BitCar believes luxury vehicles are a good investment in an otherwise volatile market,” Van Ek said.

Of course supercars are also the dream of nearly every budding cryto-mining billionaire.

The BitCar technology platform has been in R&D for more than two years and the business is also investigating applications targeting shared economy, autonomous vehicles and related IoT uses.

The company said a mechanism for returning asset appreciation to owners is the next phase of development for the platform.

BitCar’s advisor for the ICO is ASX-listed DigitalX.

NOW READ: Facebook is banning all ads for bitcoin, cryptocurrencies, and ICOs

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