Hooch, a New York-based startup company that has built a subscription-only cocktail app, announced this week that it has closed a $5 million seed round and has plans to launch its own cryptocurrency.
Hooch is a membership app that offers users the option to pay a $9.99 monthly subscription fee to receive one free drink a day at thousands of participating bars and restaurants from across the world. Prior to the fundraising announcement, Hooch had been generating buzz around its upcoming premium feature launch, Hooch Black. As the name might suggest, Hooch Black offers an elevated membership and in-app concierge service, which includes everything from travel and dining deals to access to celebrity events.
The seed round was led by Revelis Capital Group and Blue Scorpion Investments, with participation from Access Industries Holdings and Warner Music Group, which has plans to work with Hooch to promote content and events. While Hooch chose to leverage traditional capital for its seed round, the startup is now planning to stage an ICO to launch its own platform utility token, TAP.
This new digital token will be used for all in-app purchases and will offer unique access to ‘VIP experiences.’ Additionally, each in-app payment, whether done with TAP or by credit card, will pay out transaction rewards to the users in TAP.
While the Tap whitepaper is not yet available, it is safe to assume that it will be an ERC-20 token built on the Ethereum blockchain, given a description provided on the TAP landing page.
“Consumers purchase histories provide valuable insight for brands. Data is encrypted and only consumers themselves hold the access key and can opt-in to grant specific brands access via Smart Contract and receive TAP COIN in return directly from brands.”
For restaurants and other venues, Hooch is currently taking sign-ups for integration of TAP into their payment options. While not explicitly stated, there will likely be an incentive system built in for these businesses to accept the new token.