Swissquote launches an ICO for startup Lake DiamondWednesday, 24 October 2018
To develop and diversify itself, LakeDiamond has launched a fundraising campaign in the form of digital tokens with the collaboration of online bank Swissquote.
Not unlike a crowdfunding campaign, Swissquote’s clients can finance an ICO (Initial Coin Offering) directly on its online platform. This first ICO concerns LakeDiamond, a startup originating from EPFL, and Swissquote claims to be the first bank to offer this method of financing.
Based in Lausanne in the canton of Vaud, LakeDiamond manufactures synthetic diamonds used in industrial applications, like watch movements, lasers and transistors. As part of its ICO, the startup sells diamond production minutes on its machines in the form of digital tokens. “When LakeDiamond receives an order, investors can commit their tokens to “buy” a certain amount of work time, which will allow us to complete the order”, explains Pascal Gallo, director of LakeDiamond.
Converting tokens to diamonds
With an initial investment of about 33 francs, Swissquote’s clients can acquire a minimum of 60 LakeDiamond tokens (LKD). The contributors will then be able to convert their tokens directly into synthetic diamonds, or by appropriating a share of the worth of the contracts secured by LakeDiamond.
The startup plans to raise the equivalent of 60 million francs by emitting 110 million tokens, which will go towards the acquisition of 50 new reactors and the development of its two existing production units. The company aims to become the world’s number two in the field of diamonds geared towards the high-technology industry.