The tokenization of the BitTorrent file download platform was successful. This Monday, the tokens sold in an Initial Currency Offer (ICO) in a matter of minutes. It raised 7.1 million USD despite faults during the sale and community doubts.
Here are the data from Binance blog. At 2:00 UTC two simultaneous rounds started for the purchase of 62.4 billion MTB , which sold in approximately 14 minutes. One of the rounds allowed the purchase of BTT with Tron (TRX) and the other with Binance Coin (BNB). The limits were set at 100 thousand MTB as the minimum amount for purchase and about 167 billion MTB as the maximum amount. In this ICO, users from countries such as the United States, Ukraine, Venezuela and North Korea could not participate.
Each BTT token had a value of 0.00447261 TRX, equivalent to 0.00012 USD. According to the data provided by the platform for the collection of Binance.
However, during the ICO, the purchase confirmation button was “locked” and delayed the sale, according to Binance CEO Changpeng Zhao. He estimated that without this failure, the sale of the BTTs would have taken place in 18 seconds. The CEO also stressed that Binance’s platform for selling tokens is totally transparent. He said that recently the company made stress tests for the purchase process.
Bittorrent and Tron
BitTorrent Inc. is the company behind a file-sharing protocol (P2P) of the same name. The Tron Foundation acquired it in June of last year . BitTorrent is born in 2001, its creator is Bran Cohen. The Tron Foundation acquired this protocol in order to launch a project on Tron’s blockchain. The goal was to allow content creators to distribute their work to other users on the web. The BTT token would facilitate users to encourage a better exchange of files, through the use of faster networks and stable costs, according to the expectations of the company.
However, the outlook behind this ICO was not the best. After the announcement, a former employee of Tron publicly denounced that the network would not have the necessary capacity to support the BTT tokens. Similarly, members of the crypto world such as Elizabeth Stark, co-founder of Lightining Labs, said that Tron was making a second ICO using BitTorrent as an excuse .
The CEO of Binance cataloged the demand of the BTT tokens on Monday as “astronomical”. This fact indicates that a kind of “fever for the tokens” is still alive, which had its biggest boom in 2017 and 2018 with the realization of large ICO. Unfortunately, many took advantage of this fever to commit scams against users who bought tokens that later would have no value, or that sometimes did not reach the hands of their buyers. On numerous occasions, these crimes resulted in class actions.