$125 Million: Orchid Is Raising One of 2018's Biggest Token Sales

A startup with the aim of building a private, peer-to-peer browser using cryptocurrency has told the SEC it plans to hold a $125 million SAFT.

AccessTimeIconApr 23, 2018 at 6:30 p.m. UTC
Updated Sep 13, 2021 at 7:51 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Orchid Labs is raising $125 million in a SAFT sale, filings from the Securities and Exchange Commission (SEC) reveal.

According to a Form D published on April 20, Orchid has raised roughly $36.1 million out of a planned $125.59 million. Per the Form D filing, 42 investors have taken part in the sale of SAFTs – or Simple Agreements for Future Tokens – thus far. The SAFT gives accredited investors the right to claim blockchain tokens at a later date, and the investors involved must meet certain SEC-mandated income or asset thresholds in order to participate.

The startup is seeking to build an alternative to Tor, the anonymous browser software – Orchid's white paper argues that Tor can be compromised due to a lack of network nodes. It also aims to provide an alternative to virtual private networks (VPN), which require users to trust the provider.

Orchid's solution allows bandwidth users and providers to exchange ethereum-based Orchid tokens, which the firm hopes will incentivize greater participation than the Tor network has enjoyed. By executing these micropayments through the ethereum blockchain, Orchid has designed its network to be decentralized, in contrast to VPNs.

The firm raised $4.7 million in October from a raft of top-tier venture capital firms, including Andreessen Horowitz, Blockchain Capital, Polychain Capital and Sequoia.

Orchid's co-founder and CEO Steven Waterhouse told CoinDesk at the time:

"This is about anti-surveillance and anti-censorship, the ability to not be tracked. We see this not just in China or the Middle East, but in this country, in states that are considered to be free. If you go back in history, there was a lot more concern about privacy on the internet before Facebook."

Waterhouse told CoinDesk in October that his focus on private internet browsing began with the personal experience of being hacked.

"That really woke me up," he said.

Orchid image via Shutterstock.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.