UK startup company 4NEW is generating electricity from waste to power plants to drive an onsite crypto mining farm. The company is raising funds by issuing KWATT tokens. 4NEW said it has raised more than $43 million USD in its initial coin offering (ICO), exceeding its soft cap.
According to a press release Friday, 4NEW claims it will turn waste into digital gold, by mining the top 20 cryptocurrencies, while making a positive contribution to the environment.
The company said electricity is a by-product, created from processing urban waste materials and the fees derived from its waste processing business offset all of the operational costs of running its processing plants, essentially making the electricity free.
The two power plants generate 10 megawatts per hour which will power the cryptocurrency mining operation. The company said it is capable of supporting up to 360 billion gigahashes per hour in mining capacity. This activity is used to generate wealth for /KWATT token holders, who can earn more by staking or loaning their coins, as utilized energy, for the processing of transactions in the mining farm.
Token holders will have the right to mine with 4NEW for a lifetime, without having to pay for the energy required, the company said. Any remaining surplus energy will be sold to the national grid.
4NEW also said it expects /KWATT to become a utility token, being used for global money transfer and bill payments for 4NEW services. As it evolves further, the company said it will act as a global energy index, capturing the weighted average value of electricity amongst various geographic locations.
“4NEW is setting up a new electricity generating industrial plant that will not just have a low impact on the environment, but will actually contribute to the plus side of the ledger, helping the environment by converting city waste to energy, with no harmful pollution or residue, thanks to a closed combustion chamber,” said founder Varun Datta, in the statement.
By applying a sustainable approach to producing electricity from waste to the otherwise unsustainable practice of crypto mining, 4NEW may have found an environmentally sound formula to create value in the cryptocurrency business. Its third processing plant is due for its operational launch in 2019, and more are also planned around the world, including in the US, Puerto Rico and St. Lucia.
“We expect rapid and significant economic success, not simply because we are so sure of our business model, but because of the size of the problems we are tackling, brought about by the past failures and polluting solutions of others, Datta said. “The vision is to contribute something really valuable, not just to the blockchain space, but to the world. And they all share it.”
As the company’s fundraising continues, purchases made before July 20 receive a 30 percent bonus, which then drops to 25 percent until the ICO ends on August 10, when all unsold tokens will be burned. The KWATT coin will then be listed on the HtiBTC, Exrates and HotBit exchanges