Unicoin is such a fresh project that this is probably the first cryptocurrency profile you’ll read about it. That’s good ‘cause this is the point when you want to find out about upcoming projects — before they’ve blown up on all the major exchanges. So let’s talk about Unicoin.
Most crypto holders are familiar with proof-of-work coins like Bitcoin that have a starting value based on the work done to create them. The value increases, as Bitcoin has, with demand. We also have stablecoins that are pegged to the value of fiat, other cryptos, or assets like gold. But what if a coin’s value was equity-backed and tied to a VC portfolio? And what if it created a new kind of TradFi/crypto crossover. What would that look like?
What is Unicoin?
Unicoin is an equity-backed token with a unique cryptocurrency profile that was released last year by Steve Wozniak’s Unicorn Hunters project. If you haven’t heard of it, Unicorn Hunters is a streaming business reality show similar to Shark Tank. But there’s a twist: anyone can invest. Promising businesses looking for investment capital pitch to a panel of judges including Wozniak, former US Treasurer Rosa Gumataotao Rios, singer Lance Bass, and others.
The way Unicorn Hunters is doing venture capital aims to bring in smaller, retail investors, allowing them to get in on investments that are usually only accessible to people with lots of capital. Unicoin is part of the plan to implement that.
As a securitized token, Unicoin is SEC compliant from the get-go. Part of the money raised when investors buy it will go into a VC fund that returns dividends to token holders. This is what makes it an equity-backed token.
Back in March, Unicoin reached $375M in sales on it one year anniversary.
It’s not yet available on crypto exchanges because another goal of Unicoin is to combat the extreme volatility cryptocurrencies are known for and protect against inflation. Right now, there’s a $1,000 minimum investment with the goal of bringing Unicoin’s price to $1 before it’s officially minted later this year.
Why it’s different
If you ask anyone whether they would go back and invest in Amazon or Apple or Tesla when they were first starting, everyone would say yes. Who doesn’t want to invest in unicorns (companies valued at more than $1 billion) before they skyrocket? The problem for the “normal” or “average” investor is that those early, ground-floor opportunities are often restricted to people who are already rich.
Unicoin wants to change the game. It’s harnessing the clout and influence of big investors like Wozniak and bringing investing opportunities to everyone else in a new way. An equity-backed token with founders that are known and trusted — unlike many anonymously created cryptos — can bridge the world of traditional venture capital investing to those who have been kept out until now.
How will Unicoin evolve?
Once enough accredited investors buy in, it will be released on exchanges for anyone to invest and dividends will be paid to token holders from equity stakes. Alex Konanykhin, CEO of Unicorn Hunters, says, “our shareholders-only $10M round was oversubscribed within 3 business days. We received over 1,300 purchase requests, ranging from $10,000 to $1 million, prior to making any public announcement.”
Part of the goal, prior to releasing Unicoin on exchanges, is to create brand visibility, equity, and trust so Unicoin won’t just fade into the sea of cryptocurrencies being created every day.
Summary of Unicoin’s cryptocurrency profile
This new kind of equity-backed cryptocurrency could potentially be an innovative hybrid model for traditional investing and crypto. With a centralized structure, SEC compliance, known and trusted founders, and use cases in traditional venture capital funding, Unicoin has one foot in TradFi. But as a cryptocurrency that anyone will be able to buy, hold, and receive dividends for, its other foot is stepping into the innovative FinTech world that has infinite potential.
Because of its hybrid nature, it may be a hard-sell for the average crypto investor who is looking for decentralization and the pure, unregulated nature of the crypto market today. Unicoin is definitely not a standard cryptocurrency, but it has a use case and investors who want to make a play on it will need to understand its unique value proposition.
About the Author
Michael Hearne
About Decentral Publishing
Decentral Publishing is dedicated to producing content through our blog, eBooks, and docu-series to help our readers deepen their knowledge of cryptocurrency and related topics. Do you have a fresh perspective or any other topics worth discussing? Keep the conversation going with us online at: Facebook, Twitter, Instagram, and LinkedIn.
