'Decentralized Airbnb' Starts Charging Fees as ICO Model Falters

Bee Token - a crypto startup seeking to create a decentralized home-sharing platform - has begun charging fees for some customers as part of a pivot meant to boost revenues.

It's a significant development for the company, which raised millions in an ICO as an alternative to Airbnb that could cut costs for users by reducing fees and eliminating ads from online services.

The company announced the closure of its ICO in early February 2018, raising 5,000 ETH. Of the total supply of 500 million BEE tokens, 213 million are in circulation.

While Bee Token employed 20 people in the early part of last year, it's currently a team of just 10.

Bee Token set out to create a protocol for home-sharing, one in which the company's work building the system would be repaid through the rising value of its token supply.

Bee Token's website promises zero commissions on bookings through the site.

According to the Bee Token white paper, centralized services charge anywhere from 3 to 15 percent commission, depending on various factors.

The theory was that by eliminating these fees, Bee's home-sharing approach would be competitive with industry leader Airbnb and similar sites.

That's why Bee Token is currently working to raise a seed round.

"Most ICOs in 2017, the more decentralized you were, the more perfect you were," Chou said.