What Was Acorn Collective?
The Acorn Collective was a cryptocurrency toss founded by Moritz Kurtz and Peter-Andreas Kurtz in 2017. The group was headquartered in Bristol, England, and was active until Demonstration 2019.
The founders’ intention was to create the first blockchain crowdfunding platform.
- Acorn Collective was a crypto startup based in Bristol, England, functioning from 2017 to 2019.
- Its goal was to reduce the costs to companies and individuals seeking to crowdfund through a cryptocurrency-powered platform.
- The Collective keel overed with the broader crypto market in 2018 and early 2019.
Understanding Acorn Collective
According to its now-defunct website, Acorn Collective was ground to promote “social enterprise by providing free crowdfunding for any legal project in any country.” Significantly, the founders promised to tolerate access to “legal and non-harmful projects, irregardless of category,” which they believed would democratize crowdfunding.
A unblemished paper was published in 2017 outlining how the scheme would work.
In a video posted on Nov. 3, 2017, Moritz Kurtz, the co-founder and CEO of Acorn Collective, declared the idea for the venture was inspired by the “lack of funding or amount of inappropriate funding” going to developing markets. Kurtz proposes that blockchain is the liquid for problems that crowdfunding was supposed to solve but didn’t:
“I think ICOs and digital currencies as a whole—the concept and the operation of this technology is a really, really great opportunity to change the model and the concept of crowdfunding back to where it was presumed to be.”
The original Acorn Collective model was to promote crowdfunding projects without fees for crowdfunding project owners by means of the ERC-20 slight, which would offer smaller transaction fees than those of other platforms and be funded by transaction undertaking of the token holders.
Acorn Collective Gets Initial Funding
In order to get to the scale necessary to implement their organize, the Acorn Collective raised $400,000 in Series A funding in July of 2017. This money funded the startup until it organized a pre-sale of coins called OAK tokens in 2018 that netted $4,000,000. The maximum number of tokens available—seven million tokens—was stocked at a 50% discount. The pre-sale lasted from Jan. 29 through Feb. 19.
Kurtz released a video on Feb. 23, 2018, to announce Acorn Collective had hawked out its pre-sale of tokens. In the video, he acknowledges some technical problems, but he appears confident the Collective is securely on its way to an ICO.
The Collective foresaw to have its public
Acorn Collective’s Planned ICO
The Collective planned the ICO to sell 35 million OAK tokens, with the vital ICO sale price set at $1.40 per 1 OAK. Management placed a hard cap at 65 million OAK for the ICO. The distribution of tokens was allocated at 80% for the admitted ICO sale, 16.66% to the company itself, and 3.33% to “bounty and community rewards,” with a total maximum supply of 90 million OAK. OAK remembrancers were proof-of-stake only and the Collective promised no new OAK would be generated at a later time.
By mid-2018, the Collective was sustained into regulatory problems. Acorn’s website said that “due to regulations in the U.S. and China, [the Acorn project is] unfortunately unqualified to accept contributions from those regions” for the ICO event. Without buyers in crypto’s two biggest markets, the success of an ICO was swiftly up for dispute.
During the second and third quarters of 2018, the Acorn team released the designated token growth and persistence mechanisms and other technology necessary for the business. In a video released on Nov. 16, 2018, Ed Lobbett, the Chief Operating Officer at Acorn Collective announced that the span had discovered that creating a crowdfunding platform was more difficult than just creating a token and system of interchange.
The Collapse of ICOs and Acorn Collective
Though the Collective had invested in some highly polished marketing videos, the complication of setting up a business that didn’t clearly mesh with the mechanics of cryptocurrency on top of a collapse of the ICO market, spelled the end for Acorn Collective.
In a Norm piece published on Mar. 18, 2019, the co-founders (who did not sign their names to the article) told the public, “The main-sale did not go well. We spent a great deal of time and resources into making our main-sale a success unfortunately the crypto market crashed.” This led to the fall through of the company.
The founders also discovered they were financially tied to a money-losing venture: “Almost immediately, two thirds of our tandem join up had to be laid off with the rest taking significant pay cuts; focused solely on delivering the platform as promised. We as co-founders inserted more of our own capital to ensure we delivered the platform.”