Berkeley city has been at the forefront in many societal changes in the history of United States and again it is planning to launch its own cryptocurrency. According to the member of City Council, Ben Bartlett, since the city has been at the forefront of resistance as well as innovative ideas and concepts, it is imperative for the city to actually be at the forefront of the cryptocurrency revolution and launch its own coin as well.
The coin would actually act as a municipal bond. It would help the city raise funding for the homeless in the city. If further continued that since the federal government is actually not helping the city gain funds they would be taking the right steps on their own in order to do so.
The city is going to rope in two cryptocurrency and blockchain-based companies Neighborly and UC Berkeley Blockchain Lab in order to roll out the ICO. The main advantage of this ICO is that the coins would be backed by an actual security rather than a digital one. This would actually help the investors gain some security by investing in this ICO.
The city is preparing for the fight against the federal government as it had not received any federal funding. This is the reason why the city is gearing up for alternative sources of funding.
Rather than raising money the traditional way that is in way of debt, it is planning to use this innovative way in order to raise money. It remains to be seen what the reaction of the investors is, when it tries to raise money with the help of this unique method.
Considering the fact that there are many retail investors who are looking to invest in a good ICO, the prospects of the city to raise the entire funding with the help of this ICO are pretty bright. It remains to be seen whether the launch is glitch free or not. Also, lot would be dependent on the way in which the ICO is marketed. If indeed, the ICO is marketed the right way, the city would be able to easily get high-profile investors back in the ICO. This would make it a huge success and set a precedent for the others to launch their own ICO. In this way, it would be able to not only raise money with the help of ICO but develop an alternative source of funding for most of the cities.