Spin, an electric scooter startup, is raising around $125 million via a blockchain-based security token offering (STO), TechCrunch has learned. Spin, which declined to comment for this story, has previously raised just $8 million.
The idea with Spin’s security token offering is to raise money from accredited investors, who will then be entitled to a portion of the revenue from Spin’s electric scooter operations, according to a source close to Spin. Last year, initial coin offerings were the hot thing in the cryptocurrency space. Now, STOs are starting to emerge, given that they provide more security for potential investors. With STOs, investors can buy tokens that are linked to real-world financial instruments. In the case of Spin’s offering, the tokens are linked to its revenue.
Spin has been one of the more quiet scooter startups in the industry after announcing its expansion into scooters in February.This comes shortly after electric scooter startup Bird raised a…