ICOs have been executed for cryptocurrencies with diverse applications - from supporting the cannabis industry (PotCoin) to Trump's election campaign (TrumpCoin). The latest to join the ICO bandwagon is Christopher Woodrow, who has produced movies like the Oscar-winning Birdman and Hacksaw Ridge.
The cryptocurrency Christopher Woodrow plans to create is aptly called "MovieCoin". He aims to raise $100 mln through its Initial Coin Offering, which will be used to fund a portfolio of films. The ICO will be compliant with Securities and Exchanges Commission guidelines.The coins will be traded in the secondary market and are expected to appreciate based on the success of these films. Christopher Woodrow expects these tokens to democratize filmmaking - just like other ICOs have enabled common people to invest in early stage projects which were previously restricted to venture capitalists.
In a telephone interview to Bloomberg, Christopher 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.”
Blockchain in show business
This isn't the first attempt to merge the cryptocurrency and show business worlds. It has long been speculated that the Blockchain model could be used to cut out the middlemen in showbusiness and give artists their fair share of earnings. AudioCoin, which aims to be cryptocurrency of the digital music industry, has a market capitalization of $2.8 mln. Musician Bjork's latest album, Utopia, will be available for purchase through cryptocurrencies (Bitcoin, Litecoin, DASH, and AudioCoin). Various celebrities including Paris Hilton have endorsed ICOs. The glitz and glamour of show business seem to be a natural fit to the new age cryptocurrency businesses.
How is it different from crowdfunding?
The Blockchain and ICO model have disrupted multiple industries and Christopher Woodrow wants to do the same with Hollywood. However, movies have been produced through crowdfunding efforts before. Kickstarter lists 23,892 funded projects under the category ‘film’. So how is an ICO different?
If Woodrow accepts Bitcoin or Ethereum in exchange for MovieCoin, he would be able to tap a global investor base unlike crowdfunding models, which tend to be restrictive. Issuing a token also increases liquidity for investors as they would be able to trade these in secondary markets worldwide.