Renrenbit is a China-based startup that deals with loans and peer-to-peer wallets and has just raised $3 million from major VCs such as Dragonfly Capital and Zhao’s own DFund, as well as from Bitfinex, of which Zhao is a shareholder. According to the official Telegram channel, the company is currently valued at 16 million dollars.
The company was founded in late 2018 to operate as a broker for credit institutions and borrowers who need to borrow Chinese yuan or cryptocurrencies using other crypto assets as collateral.
The token sale has put on sale a total of 21 million tokens at the price of 1 USDT, all sold within four hours. However, the company allowed investors two days to withdraw their purchase orders in the event of second thoughts.
These newly issued 21 million RRB make up only half of the total supply, while the remaining tokens are still held by the Renrenbit team. 2.1 million of these will be unfrozen and available for trading, although for now, this is only possible within the proprietary app.
RRB is an ERC-20 token that can be used to pay fees on transactions within the Renrenbit platform, which allows crypto-to-crypto and OTC trading. It may also be used as collateral for cryptocurrency lending services provided by the company.
Despite the fact that already in 2017 the Chinese central bank had banned ICOs and fundraising through token sales, Zhao said on the company’s Telegram channel:
“Renrenbit held talks with the financial regulators and the central bank as early as January this year. We are clearly aware of the legal boundaries”.