South African startup Advertiza is to launch an initial coin offering (ICO) in the third quarter of this year in a bid to raise funds for the completion and marketing of its advertising mobile app.
Advertiza is a digital advertising company that helps small and medium enterprises (SMEs) find innovative and affordable ways of advertising.
Founder Jabu Masombuka said the idea behind the startup is to allow everyone in the advertising value chain to benefit from campaigns, and help SMEs take an active part.
“In the past, many businesses were excluded from using advertising to expose their products and services to large target audiences due to expensive investments needed to advertise on traditional media platforms such as radio, newspaper, TV and outdoor billboards,” he said.
Advertiza was developed to help businesses reach their target audiences at a minimum cost, with Masombuka saying the app will go even further by implementing a loyalty programme that pays cash rewards to users.
He said an ICO was the most lucrative manner in which to raise funds for the app. Investors will purchase a crypto-currency called Tizacoin, developed on the ERC-20 standard.
“At this point, we have decided that only 50 million Tiza tokens or coins will be issued during the ICO sale phase in the third quarter of 2018. The holders of Tizacoins can expect to make a profit from the appreciation of the value of the Tiza tokens in circulation,” said Masombuka.
The app will enable users to transact with Tizacoin.
“The coin will be used for the purchasing of ad space and for the payment of claims to app users. As more businesses and consumers use the app, the demand for the coins will increase, pushing up the value of the coins and placing Tizacoin holders in a favourable position,” he said.
The first phase of the app development, which includes services such as publishing adverts, scanning QR codes, and redeeming Tizacoins, is underway.