Finom Closed Largest Ever Stock Capital Increase Using Cryptocurrency
Originally published on: CoinSpeaker
Read the original article
December 29, 2017
Switzerland-based financial corporation has become the first company in world history to form its share capital using second largest digital currency.
Blockchain company Finom has announced it invested 7,760 Ether in its share capital, what marks the largest increase in stock capital with cryptocurrency. This is the first time the digital currency was pledged as an asset of a business in Switzerland’s Appenzell-Ausserrhoden canton.
The funding, that was equal to 2,4 million Swiss Francs (СHF) at the time of incorporation, was registered on the Swiss Commercial Register Zefix. Finom has booked ETH as an intangible asset of the company, raising authorized stock capital from 0.1 to 2.5 million CHF.
Stock capital refers to the money or property invested by stockholders to establish a business and guarantees the insured minimum necessary for settling accounts with suppliers.
Finom’s share capital is now 7 times higher than the share capital of JSC LukOil and 1.6 times higher than that of X5 Retail Group.
“At Finom, we are interested in bringing blockchain to the masses and legitimizing cryptocurrency as a form of stock capital in an innovative manner,” said Denis Suslov, Chief Financial Officer at Finom.
“This alternative method is fully compliant with current tax legislation. An independent auditor registers the value of the assets in the wallet under company’s control in fiat equivalent according to the current exchange rate. Thus, cryptocurrency can be contributed to share capital as an alternative asset.”
Finom aims to make financial operations available to everyone by offering an integrated financial ecosystem with a single entry point and an intelligent AI-based assistant. The company is going to introduce digital currency wallets with linked debit cards in 2018 and to form a cryptocurrency bank with a network of terminals by 2020.
The project includes both a security token (FIN) and a utility token (NOM), which serves as an internal currency within the Finom ecosystem. Investors who buy FIN tokens receive a corresponding amount of NOM tokens as a bonus.
In November, Finom launched a token sale with plans to raise $101 million and has already raised more than $40 million. The project includes both a security token (FIN) and a utility token (NOM), which are offered during a crowdsale. The offering closes on December 30, 2017.
Finom has been operating since 2012 and serves more than half a million users through its five business units, which include TabTrader, Nanopool, Cryptal Mining Centers, Cryptonit, and Beetle.io. Nanopool is the third largest ethereum mining pool in the world, while TabTrader offers trading on almost every major exchange such as Bittrex, Poloniex, Bitfinex, and Kraken.