On October 8th, blockchain company and mining pool ViaBTC ended their ICO, the first large offering to date using the Wormhole protocol and the Bitcoin Cash chain. In just over two hours, the ViaBTC raised $30m — a number that is hard to ignore, especially in such a brief period of time.
First proposed by developers for Bitmain, the leading ASIC chip designer, the Wormhole protocol was created to implement smart contracts and issue tokens on the Bitcoin Cash blockchain. Wormhole Cash (WHC), the native token of the Wormhole protocol, is based on the Omni Layer protocol, a platform that performs a similar function on top of the Bitcoin blockchain.
According to the Wormhole Cash whitepaper, “The introduction of WHC is necessary because Wormhole protocol layer has no control of BCH layer when executing smart contract and in this case there is no way to realize transaction. Besides, we need WHC to serve as gas when executing smart contract to prevent abuse of BCH network.”
The success of the ViaBTC ICO will be viewed by Bitcoin Cash believers as proof that its protocol, which is designed to carry out the original vision of Satoshi Nakamoto and referred to as “Real Bitcoin” by its community, is robust enough to compete with the likes of Bitcoin.
The total number of VIAT, the token issued by the ViaBTC ICO, is fixed at 2 billion. However, according to ViaBTC’s whitepaper, “ViaBTC will buy back and ‘burn’ VIAT with 20% of its quarterly revenue at the end of each quarter” on a “benign deflation model.” The coin itself is described as “an official value-added services and privileges scheme and it is used as ‘gas’ and value transfer tool.” These privileges include a fee discount in the mining pool, exclusive customer support, transaction acceleration, and more that have yet to be rolled out.
On October 9th, customers of Coinex, the exchange owned by ViaBTC, who trade VIAT received an airdrop of CET tokens (the native coin of Coinex) from the company’s holdings. CET is trading at around $0.03 per coin and VIAT at around $0.04.