Swiss supply chain logistics startup Modum raised $4.2 million in the first 10 minutes of its initial coin offering (ICO). So far, the Modum ICO has attracted $10 million in contributions.
The Zurich-based startup aims to provide an Internet of Things (IoT)-based supply chain logistics solution to help European companies comply with European Commission regulations for pharmaceutical transport. Modum sensors will record environmental data during shipments to ensure they comply with both supplier-customer contracts and government regulations. So far, 43 different companies have pilot-tested Modum’s system with almost 1,000 shipments. The company anticipates the product will launch commercially during the first quarter of 2018.
The Modum ICO began on September 1. The price was pegged at 1 USD = 1 MOD for this ERC20 token, but early contributors received a discount of up to 30%. After 10 minutes, the Modum ICO had raised $4.2 million. Within 5 hours of the crowdsale’s opening, that number had swelled to $10 million, including the $1.25 million raised during a private August presale.
Modum CEO Malik El Bay was ecstatic at the crowdsale’s early success:
The goal of the MOD Token sale was to fundraise for the future development of modum.io. We are thrilled to have such a positive response and look forward to the feedback from our cryptocurrency backers at our predetermined milestones over the next few years. We have a solid product with several successful pilot tests completed, a working hardware prototype, a strong team of developers, a handpicked team of advisors, and soon we will have the funds to bring our innovative product to market.
Modum is one of a number of startups and established companies to turn to the blockchain to secure supply chains. Another Swiss supply chain logistics startup, the government-backed Ambrosus, has raised $30 million from venture capital firms ahead of its public ICO. Mega-retailers including Walmart and Kroger have joined an IBM working group that, like Ambrosus, hopes to use blockchain tech to secure food supply chains. Just this week, shipping firm Marine Transport International completed a blockchain pilot program designed to automate and digitize their supply chain process.