BitPAC, a member of the United States Political Action Committee, is set to hold an ICO to support candidates for the House of Representatives, the lower house of the US Congress.
According to CoinDesk, founder and head of BitPAC Dan Backer said the group is going to conduct cryptocurrency crowdfunding to support candidates for the election. Initial Coin Offerings method of funding was popular during the 2017 crypto boom. However, with many exit scams coming up, many regulators and governments came up with measures to discourage investors from floating ICOs.
According to Backer anyone who has donated to the Political Action Committee can take part in it and in return, citizens will receive the Politicoin cryptocurrency.
The founder emphasized that the impending Politicoin is designed to operate as a utility token. As such, the coin has no value and cannot be used for value storage. Instead, the aim of the venture is to offer the token owners with some form of voting privileges.
Backer said that his committee does not prohibit anyone from trading the coin and exchanges are also free to list the coin but insisted that it has no value.
Furthermore, Backer also insisted that BitPAC has stored own money but was determined to conduct an ICO to ensure that everyone has an option to donate one Politicoin to his organization.
For now, donations will support North Carolina candidate Dan Bishop who is garnering for the US Congress in the upcoming special elections. In the future, BitPAC plans to significantly expand the functionality of its ICO, and provide citizens with the right to support all registered candidates from the two major parties in the US.
The report states that voters can donate using cash in the upcoming ICO. Nevertheless, it is mandatory for the voters to get in touch with Backer or any other member of his management team if they want to give away cryptocurrency. Contacting the team is essential because of the stringent measures stipulated by the Federal Election Commission (FEC).
In that respect, BitPAC was closed down last year because of ambiguity in recording of cryptocurrency donations. Backer says he decided to awaken PAC after noticing there were loopholes on reporting of crypto donations.