In the summer of 2014, Ethereum was funded by a crowdsale. Crowdsales are a type of funding where instead of going to VCs or banks, a project raises money by selling tokens to the public. In Ethereum’s case, these tokens were called “Ether” and were sold in exchange for Bitcoin.
The Ether sale raised 31,591 BTC, which was worth around $18.4 million at the time.
Ethereum’s founders, Vitalik Buterin, Mihai Alisie, Anthony Di Iorio, and Charles Hoskinson, were all involved in Bitcoin before they started work on Ethereum. They saw Bitcoin as a great way to send money around the world, but they also saw its limitations.
They wanted to create a platform that would be more than just a digital currency; they wanted to create a platform that would allow people to build decentralized applications.
The funds from the Ether sale were used to pay for the development of the Ethereum platform and to fund early projects built on top of it. The Ethereum Foundation, a non-profit organization that supports Ethereum’s development, still holds some of the Ether that was raised in the crowdsale.
The success of Ethereum’s crowdsale showed that there was demand for a platform like Ethereum and that people were willing to put their money behind it. It also showed that ICOs (initial coin offerings) could be a viable way to fund projects in the blockchain space.
Since then, ICOs have become a popular way to fund blockchain projects; in 2017 alone, ICOs raised over $5 billion.
Ethereum’s funding was an important moment in the history of blockchain technology. It showed that there was interest in this new technology and that people were willing to invest in it.
It also set the stage for the explosive growth of ICOs in 2017.