”Facebook of China” Renren to Stage ICO

Renren, the first generation of Chinese social media, has announced its plan to start an ICO project called RR Coin. In reaction to the news, its shares spiked 13.57%.

From Renren to RR Coin

”Facebook of China” Renren to Stage ICO

Launched in December 2005, Renren has been dubbed “The Facebook of China” with its Facebook-like features and its popularity among students in the early years. It represents one of the most important and successful “real-name registration” SNS companies in China.

Over the years Renren has seen rise of new players such as microblog platform Sina Weibo and Tencent’s mobile app Wechat. Unlike the two blooming products, Renren is losing traction in appealing to the new masses of Chinese Netizens. The only solution is constant product innovation. And the social company decided to turn its strategic attention to the blockchain industry.

According to the whitepaper released by Renren, they will develop a blockchain-based open source platform that can record user interactions and trading behavior. And the token RR Coin will be used in multiple scenarios from rewarding users who contribute content to charging for advertising.

The Facebook of China RenRen Is to Stage an ICO

RR Coin has 1 billion coins in total, among which 40% will be used for ICO sale, 25% for the RR Coin Foundation, 15% will be given to the team for marketing and development and the remaining 20% for business expansion. “The project is going to raise 100,000 ETH,” said a Beijing-based ICO investor. “I think it’s highly overvalued. RR Coin is more like QQ coin of Tencent that is totally centralized. They are just selling a new concept to make users active again.” But it seems that new concepts work. Renren’s stock (NYSE: RENN) spiked around 19% in reaction to the news.

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