In fact China’s forgotten social community is doing an ICO • TechCrunch


ICOs had been one of many breakthroughs within the tech business in 2017. Initially it was simply these within the blockchain area who had been conscious, however because the yr went on plenty of present enterprise grew drawn to the concept of elevating cash with out the same old route of VCs and misplaced fairness.

The yr ended with greater than $4 billion raised through ICOs. It’s honest to say that the idea is widely-known and that has already been confirmed in early 2018.

Witness exhibit A: Renren, the corporate that was once-hailed as China’s Fb however has reinvented itself in current occasions after shedding China’s social battle, is doing an ICO — also referred to as token sale.

China banned ICOs (and bitcoin) last year, however Renren can qualify as a U.S. agency since it’s listed on the New York Inventory Alternate. Whereas which may circumvent the Chinese language ban, it’s certain to boost consideration among the many SEC, which has already taken motion towards ICOs that violate securities laws.

Renren didn’t reply to a request for remark and clarification.

The corporate’s Fb-like service ran out of steam in China as Tencent’s WeChat messaging app and Weibo’s Twitter-like service rose to dominate the nation’s social media panorama. Slightly than folding, Renren went after new areas together with logistics, funds and even {hardware} through a flurry of investments from 2014-2016.

Now it’s specializing in social once more with RRCoin, a token that it plans to promote through an ICO, according to TechCrunch’s Chinese partner Technode. The plan is to develop a platform for social media that can permit different apps to attach with customers in the end rewarded with incentives for engagements, though it seems that the complete whitepaper for the token sale has not been launched but.

That’s not in contrast to the methods behind Courageous (BAT) and Kik (KIN) which goal to incentive consumer engagement with “attention-based” tokens, however it’s arduous to see how this transfer will revive Renren given the corporate’s years-long droop.

WeChat and Weibo are simply too far forward at this level. For a Western perspective: Would the identical method breathe new and sustainable stay in Western social has-beens Friendster or MySpace? Unlikely, and that’s the identical subject right here.

One space the place Renren could also be on to a system with the next likelihood of blockchain-based success is trucking.

That’s sounds odd for an organization rooted in social media, however it’s doubling down on the trucking area after it acquired U.S.-based Trucker Path, a social platform for the trucking business with an obvious 600,000 customers. The corporate additionally affords an app that connects transportation brokers with carriers.

Renren had previously invested in the startup, however now it added a magic phrase to its future plans for the enterprise: “blockchain.”

That’s proper. Close to the tip of the brief announcement of Trucker Path’s acquisition is the next quote from Renren chairman and CEO Joseph Chen.

“At the moment, the 2 main rising know-how areas are synthetic intelligence and blockchain. With the acquisition of the Trucker Path social platform and the Truckloads freight market, the Firm might be well-positioned technologically to drive innovation inside this essential business.”

The corporate plans to give attention to the enterprise aspect of Trucker Path and introduce the blockchain.

To be honest, there are literally good uses-cases for the blockchain on this planet of logistics, from monitoring meals, to a world ledger for freight and basic logistics, so this isn’t fairly as absurd as the iced tea company that shoved ‘blockchain’ into its name for inventory value advantages. However nonetheless the plans are obscure at this level, though that isn’t deterring traders.

These two bulletins have despatched Renren’s share value upwards, with the inventory value leaping greater than 75 % since buying and selling resumed on January 2. That’s not fairly crypto-like positive factors — bitcoin jumped 18-fold throughout 2017 — however it’s one other signal that established companies are trying on the blockchain.

For extra perspective, a five-year view of the soar:



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