Wegogo Eyes $88 Million In ICO To Build First Travel Blockchain For Aspirational Travel In Asia
Wegogo has embarked on an ambitious project as it seeks to become the world’s first travel blockchain, for aspirational travel in Asia. To achieve this, the company intends to raise $88 million through an Initial Coin Offering ICO.
What is Wegogo?
Wegogo is an online travel startup that targets Chinese users via WeChat. The startup is in the process of making its services available to more users, mostly through online booking platforms in addition to WeChat and IOS. Plans are also underway to roll out in Android apps
The venture is backed’ by a group of Singapore investor’s, led by Farsight Capital’s managing director, Wong Toon King.
The Social travel app strives to make it easy for Chinese tourists to discover and book travel experiences with Aspirational Service Providers. The app essentially acts as a platform for matching travel suppliers with new Chinese travelers.
The platform also ensures operators get noticed amongst app users in additional to making it easy for them to showcase their most authentic experiences to potential customers.
Wegogo makes money by receiving a fee on processing transactions upon connecting travelers to their preferred Aspirational Service Providers, paid via Alipay or WeChat Pay.
Wegogo Blockchain Aspiration
Asia’s travel boom presents unique opportunities that Wegogo plans to take advantage of. Thanks to higher disposable incomes, increased tourism offerings and low-cost carriers, Southeast Asia has become the world fastest growing region for outbound travel.
Wegogo believes it has found a way to curve for itself a big piece of the $38 billion market opportunity in the fast-growing aspirational travel space. By leveraging blockchain technology, the social travel app hopes to play a pivotal role in the evolution of Asia tourism industry and in the process generate significant returns.
Pursuit of blockchain technology is part of the company’s ambitions to bring smaller travel providers closer to merchants who have yet to come online and start transacting with global travelers.
Wegogo big plan is to use blockchain technology to execute a peer-to-peer ‘PathFinder model’ as well as operate a reward system for all people who take part in the ecosystem while using its cryptocurrency. The reward system is centered on PathFinders who love traveling, discovering, sharing and guiding others to share the travel experiences.
Whenever PathFinders upload or share their unique activities or destinations on the platform, they will be entitled to a reward paid with WeGold. Should other users be motivated by the reviews and make bookings through Wegogo, the PathFinders would be rewarded further.
Aspirational Service Providers that strengthen partnerships within Wegogo ecosystem and promote the platform on their respective social media channels will also be incentivized by the reward system. Travelers who make purchases through the Wegogo app will also be incentivized through earning incentive points for their purchases.
All transactions will be captured on the blockchain to allow for a transparent ecosystem whereby people are rewarded based on what they bring to the table. The fact that WeGold tokens run on an Ethereum-based network means holders of the tokens will be able to cash them out whenever they wish. Holders will also be allowed to hold on to the coins as a form of investment.
Wegogo ICO Offering
Given that the company is still in the early stages of growth, the management has resorted to raise funds through ICO to advance development projects. The ICO route provides the most transparent and efficient way of raising funds, at such a pivotal time.
To be able to build a robust travel ecosystem within blockchain, Wegogo intends to raise $88 million in the offering. The online travel startup is to issue 3.4 billion WeGold tokens at a value of 0.00006866 ETH each or $0.037.
ICO Proceeds Usage
Technology Development 30%
Wegogo is to use 30% of the total ICO proceeds to develop the blockchain technology platform. Top of the agenda is to come up with a platform that is robust and scalable in all aspects, able to support more users while providing a vibrant experience on the aspirational travel platform.
Operating Expenses
Given that the company is still in the early phases of growth more manpower in the form of developers, marketers, designers and other professionals are needed to support the growth strategy. That said, Wegogo is to use 25% of the ICO offering proceeds to cater for any operational expenditures.
Reserve Funds
Wegogo is to set aside 20% of the ICO proceeds to cater for any additional expenditure that might come into being, as a result of economic and demographic changes.
Pathfinders Loyalty
Following the ICO, Wegogo is to recruit up to 1,000 PathFinders in China, tasked with the responsibility of discovering places that travelers can visit as well as tell stories in the effort of marketing the locations. 15% of the ICO offerings is to go towards building a robust Pathfinder network for marketing Wegogo
Ecosystem Expansion
Wegogo intends to use 10% of the ICO proceeds for business development strategies, mostly focusing on platform evangelization activities, marketing, and public relations activities.
ICO Timeline
The token sale will open to the public on May 15th, 2018 at 02:00 UTC, to the public. It will run until May 30th, 2018 at 09:59 UTC. No limit has been set on the amount of tokens that one can purchase at the offering.
Wegogo plans to Beta release a PathFinder Management module in the third quarter that will enable PathFinders to upload newly discovered travel experiences on the platform. Focus in the fourth quarter will be on the launch of a marketing campaign, to target key Asian cities
(By Neha Gupta)
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