Initial Coin Offerings are steadily outperforming venture capital funding these days.
Startups and companies are entering this arena to raise investments for their businesses.
It’s quick and there are less regulations and less brokerage fees to be paid.
Like in any investment, there’s an element of risk but some ICOs have great potential to outperform returns from traditional stocks in your portfolio.
HDCoin is an interesting ICO we’re watching out for.
Early next year, the HD Group will be issuing 10 million HDCoin tokens, each priced at US $2.
The launch is in three phases.
5 million HDC will be released in the presale where investors will receive a 100% bonus.
2.5 million HDC in the second phase with 33% bonus.
The remaining 2.5 million HDC will be in the third phase.
What makes HDCoin different from the rest?
Established and growing company: HD Group, the company behind HDCoin, is a successful tech startup that has grown in the last decade. They’re in the information and communication technology market and provide Internet services, Telecommunication, Cloud and Datacentre services.
Their brands, HD Net, Unlimited Internet and Hardware Hub have made year-on-year profits and occupy a substantial section of the New Zealand market. The company is now ready to move on to the next level.
Stable: HD Group has millions in real fixed-assets including commercial property, investments, datacentre and network assets and high level of liquidity with cash in bank. Investors will have a hard time finding a more stable ICO.
Future-oriented: This is a company with a vision. The funds raised from the ICO will be used to expand the HD Group’s existing businesses, marketing activities and their upcoming projects.
They’re long-term players in cryptocurrencies and will soon be launching ICOex, a platform to raise ICO capital. HD Group will also be using its expertise to provide services to companies wanting to launch their ICOs.
Their other projects include HD Cloud, a cloud service using OpenStack portal, similar to Amazon’s AWS, is in development. They’re also working on a cloud-based accounting solution, Robotic Accounting software. They have plans to expand into the mobile services market and eventually into the power sector. They hope to offer bundled services by 2020 to customers including phone, mobile, 4G, power and maybe even TV - all on one invoice.
Transparent: HDCoin has an emphasis on transparency. Company ownership documentation is published via their Information Memorandum. There’s also an emphasis on published annual returns and regular commitment to blog updates for investors.
ICO linked to company Share capital: Unlike other ICOs, HDCoin is linked to shares in the HD Group. 10 million HDCoins constitutes 10% of the shares of the companies. This is an opportunity for investors to get a slice of the action in a growing tech firm.
Unique buy-back/burn policy: The buy-back/burn policy is another factor that sets this ICO apart. HDCoin holders will together form the HDCoin Trust, a body that will regulate the relationship with the HD Group. When dividends are published, HD Group will use 10% of the dividends to buy back/burn HD Coins.
No reserves: Another rare feature of this ICO is that the HD Group is not holding any reserves of HD Coins. The market will own 100%. Hence, there’s no scope for the company to manipulate the market for HDCoin, or pump and dump schemes like some ICO’s.
HDCoin is setting a new trend for ICOs. It’s a model that other investor seekers may want to replicate.
Besides, the HD Group has grown consistently and made profits year-on-year so investor confidence should be high.
Techday recently had the opportunity to sit down with and spoke to HD Group founder and CEO Ben Simpson about his vision and future plans for the company.
You've been known to be a disruptive innovator. Tell us what motivates you.
My self-belief, energy and passion. I've been self-employed since I was 15 and I've always pushed the boundaries. I'm entirely self-taught and in the cutthroat world of tech business, I’ve broken all the norms.
In 2006, when I came up with the idea of a company providing free server hosting services, nobody had thought of it.
A year later, Daniel Tanner joined me and we were able to launch a company. Since then, we've put a lot of time and money into this venture and it has paid off. I’m a proud Kiwi and I like to keep my talent, products and services local.
We have plans to develop the HD Group into a 150-million-dollar company in the next five years.
How has the HD Group grown in the last decade?
In the last eleven years, we’ve been able to win the confidence of our clients. Our brands, Unlimited Internet, HD Net and Hardware Hub have done well.
The key to our success has been our ability to provide future-focused, flexible and customised services.
In fact, we’re always on the lookout for ways to capitalise on new technologies to benefit our clients.
We’ve invested millions of dollars into our infrastructure so our clients can on sell our service or build a stable business around our business ecosystem.
We’re improving and upgrading our services continuously. Technology never stands still and we’re committed to ensuring that the HD Group is always one step ahead of that curve.
Data centres are another competitive industry HD Group is in – how do you differentiate your offerings in this industry?
Data centres provide a framework for the rapidly expanding digital world.
The New Zealand data centre services market is expected to reach $272 million by 2020 and according to analysts, the country has the potential to be a safe haven for data storage in the Asia-Pacific region.
There are over 29 large data centres in New Zealand and this business is growing.
We understand the importance of continuous computing and we've been successful in providing the 'always on’ capability.
With multiple redundant systems for electricity, connectivity and cooling, our datacenter continues to thrive. Besides, we monitor and address faults 24/7/365.
What is your advice to startups?
Three things: Behind every successful business there are unsuccessful efforts.
Just because you're struggling, doesn't mean you're failing.
You will need a good team and reliable partners around you.