RenRen is planning to raise funds through an ICO. This is interesting for a couple of reasons:
- China previously banned ICO’s
- First large listed company doing an ICO
The market seems to have reacted positively to the news with the stock price increasing by 47% on the news. The new token will be the RRCoin. More information about the RenRen whitepaper seems to only be in Chinese.
This is inline with our 2018 ICO predictions in that this is the start of the larger businesses doing ICO’s.
This is also a signal that the Chinese market will soon open up again and should signal a possible boom in ICO activity if this does open up again as the Chinese market was a huge contributor to the ICO market until the ban. RenRen is listed on the Nasdaq in the USA and therefore may be circumventing this but the fact is that the whitepaper is all in Chinese and this is a good indicator that the focus will be on the Chinese market.
Some pundits are skeptical about this ICO as they say that RenRen is not doing well and this is something of a money grab by a listed company however the fact that this is happening is overall positive.