The Initial Coin Offering (ICO) frenzy seems unstoppable since more and more established entrepreneurs are using them as a scheme to crowdfund their projects. The latest significant development is a new crypto coin called MovieCoin, the brainchild of Christopher Woodrow, producer of award-winning movies like Birdman and The Green Inferno.
The 40-years old acclaimed producer plans to create MovieCoin, a new cryptocurrency that will be used as a means to democratize filmmaking. To do that, Woodrow wants to raise $100 million through an ICO. These funds will be used to fund the production of new films.
Just as other ICOs enabled people to invest in new ambitious projects, a right previously restricted only to venture capitalists, Woodrow expects MovieCoins to enable ordinary people to invest in new movies.
As the US Securities and Exchanges Commission (SEC) has ICOs under scrutiny, the Moviecoin ICO will surely be compliant with SEC guidelines. The coins will be traded on the secondary market, and their value will vary according to the success or not of these films.
Woodrow joins the ICO bandwagon at a moment when this type of crowdfunding is becoming ubiquitous. As JustCryptoNews.com has reported, ICOs have been executed or announced for a vast variety of applications: from Virtual Reality in concerts to cybersecurity, app stores, and blockchain banking.
Talking to Bloomberg, Woodrow said:
“We’re trying to revolutionize the way films are financed... We’re in the process of putting together a slate of projects that will include A-list movie stars, top-tier directors, seasoned and established producers, and that will form the initial slate for MovieCoin.”
Woodrow co-founded Worldview Entertainment in 2007 and has secured more than $150 million in equity and debt financing for the company. He has financed and produced over 20 major motion pictures including Birdman, Child 44 and The Green Inferno. He left his position at the company in 2014.
Will Woodrow Succeed?
Whether Woodrow's attempt will succeed or not, remains to be seen. Nevertheless, MovieCoin is not the first foray to bring cryptocurrency to show-business. AudioCoin, which aims to be the cryptocurrency of the digital music industry, has already launched and has a market capitalization of $2.8 mln, at the time of writing. Also, as JustcryptoNews.com has reported, Bjork's latest album -to be released on Nov 24- will be available for purchase through cryptocurrencies with 100 Audiocoins as a reward. And finally, various celebrities have endorsed or promoted ICOs, which prompted SEC to issue a warning for celebrities endorsing ICOs.
An ICO it different from ordinary crowdfunding (i.e., Kickstarter) as a cryptocurrency such as MovieCoin enables the project to accept Bitcoin or Ethereum in exchange for tokens, tapping a global investor base larger than that of crowdfunding models. Further, issuing a cryptocurrency token through an ICO increases liquidity for investors as they would be able to trade these in secondary markets worldwide.