Micropayments platform Tagcash is seeking to raise up to $16 million (P800 million) through its initial coin offering (ICO).
In an interaction with DEALSTREETASIA, Tagcash founder Mark Vernon said, the funds raised in the digital token sale will be used to back Philippine-based startups.
Tagcash recently posted online a draft of its ICO white paper following the announcement by the Banko Sentral ng Pilipnas (central bank) last January of the regulatory guidelines for virtual currency (VC) exchanges in the Philippines.
Vernon noted the token sale is likely to take place in January 2018, unless there is interest to buy before the date.
A total of 80 million TAG tokens will be sold, priced at P10 or around $0.20 cents apiece. The Fiat currency to back it will be held by either Unionbank or Sterling Bank of Asia, both large banks in Philippines.
Some of the proceeds will be used to build more apps and APIs (application program interface) that use the TAG Blockchain.
Vernon said, the community of TAG currency holders will decide on prospective startups as they will be the ones voting for their projects.
“The average project will need one to two million pesos each, and the aim is to help at least 500 startups,” he said. “It makes sense that the projects supported will be anything that benefits the platform and will increase the usage and price of the TAG currency.”
Created by Vernon in 2014 in the Philippines, Tagcash builds apps, websites and APIs for fintech, working with regulators to allow easy management of money and private currencies used for rewards and tokens in games and apps.
The British serial entrepreneur said, the TAG platform offers decentralized trading between any asset. This opens up new avenues for usage by the general public as TAG connects with gateways to Fiat digital money issuers around the world.
Tagcash operates from its own offices in the financial district of Makati City with a staff of 20. It also owns and operates a development company based in Kochi, India with 10 developers.
“Tagcash Ltd has its applications for VC licence and EMI (E-Money Issuer) in process at the BSP. The EMI license is needed to issue Fiat currency as a token on the blockchain, something that has not been done in Philippines yet,” Vernon said.