Categories: ICO

China’s Version of Facebook Plans to Raise Funds via ICO

For a lot of companies today, innovation is key in order to survive. And for the likes of Renren, a company that has been dubbed as Chinese Facebook, it has now turned its focus on blockchain technology. Renren has declined in popularity over the last years. But recently, after announcing that it is going to start an ICO project called RR coin, its shares surged over $18 from $10 days just before 2018.

RR coin is said to be an open source blockchain platform for social networks according to the company. Another reason that has been attributed to the recent spike in Renren’s value is the acquisition of the American company Trucker Path. Trucker Path is an app meant for trip planning for truck drivers.

Decline of Renren over the Years

Renren started in 2005 as one of the first generations of social networks in China. It has pioneered real-name registration for SNS. It has become popular during its early years. However, it has lost traction since Sina Weibo and WeChat became the dominant options for social networking in China during the mobile era.

Jason Chen, the chairman and the CEO of Renren mentioned that “currently, the two major emerging technology areas are artificial intelligence and blockchain”.

He also added that “with the acquisition of the Trucker Path social platform and the Truckloads freight marketplace, the company will be well-positioned technologically to drive innovation within this important industry”.

What to Expect from RR Coin

In the white paper that was released by Renren, the RR Coin is a blockchain-based, open-source approach that hopes to eliminate information asymmetry. It records all interactions of participants using decentralized booking system. It also manages the trading behavior of users under through smart contracts.

RR Coins can be earned as tokens in a merit-based system designed for its users, content creators, as well as developers. The tokens can be sent as gifts to live streaming hosts, for instance. The gift will be shared with both the host and the developer that developed the live streaming system.

The plan is to launch the RR Coin by the second quarter of 2018. The RR coin will have a total of 1 billion coins. 40% of the total coins will be used for ICO sale, 25% will be allocated for the RR Coin Foundation, 15% for development marketing, and 20% for business expansion and its future partnerships.

Other Companies Innovate via Blockchain Tech

Renren is not the only company that is transitioning towards Blockchain tech. Xunlei Networking Technologies has launched the “Wanke coin mining” cryptocurrency project. After the announcement, its stock has spiked from $5 per share to $25 per share.

Another company is Qihoo 360 which is a leading antivirus software provider that has decided to enter the cryptocurrency and blockchain industry. It has launched a blockchain research center in order to explore how the tech can be used in order to improve financial services.

Do companies innovate and integrate blockchain technology in order to expand? And also, what could be the future of these companies using blockchain tech in China now that the country has been placing strict regulations in the industry?

Janneke Eriksen

Janneke is a writing ninja and has vast experience in journalism, specifically in the crypto space. As a blockchain believer and avid Bitcoin fan, she’s incredibly excited to share to our readers the latest news around so they are always updated wherever they are.

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Janneke Eriksen

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