Energi Mine ICO targets energy markets
ETK coin raised US$15 million but will that power it into the market?
International energy markets are entering a period of mass disruption. Alongside market and political forces that are making energy makers reconsider the rules they use - Elon Musk's deal with the South Australian government is a good example - we are seeing energy markets evolve as traders look for new ways to take advantage of emerging technologies.
One such company is Energi Mine. This UK-based firm is involved in energy market trading and incentivising customers to reduce power use. The company has successfully launched a US$15 million initial coin offering, raising US$4 million last week on the back of $11 million raised during a pre-sale.
The company says its new Energi Token (ETK) will use blockchain to reduce the carbon footprint and increase transparency of the world's energy systems.
Users of the platform will be rewarded with Energi Tokens when they opt for power-saving behaviour such as reducing energy use and choosing public transport, and when they buy power-efficient appliances.
Energi Mine founder and CEO Omar Rahim said: "Investors have bought into our vision to revolutionise and reinvigorate the stagnant energy market using blockchain".
ETK tokens can then be used by people participating in the market to purchase new appliances, to pay their energy bills or in a new payment system being deployed at electric vehicle charging points.
The company currently has about 1,100 customers across the UK, France, Belgium and The Netherlands and manages over US$140 million of energy contracts for its customers.
While similar moves haven't yet been made in the Australian market, energy retailers are looking for ways to incentivise users to reduce consumption, particularly during periods of extreme demand. Some, such as Powershop, offer discounts for customers who reduce consumption by a set amount while others are subsidising or financing the installation of solar panels and batteries.
The use of cryptocurrency of Energi Mine will likely get some attention although the highly regulated industry here is likely to make such a scheme challenging to instigate. Locally, startup Power Ledger is also aiming at the energy sector with its cryptocurrency.