Blockport announces plans for tokenization of its shares and profit-sharing for its investor community

Blockport announces plans for tokenization of its shares and profit-sharing for its investor community

At Blockport, we’re excited to take the next leap in our company’s growth - launching multiple equity-based funding rounds in the form of a Security Token Offering (STO).

We have gone through tremendous growth in 2018, and we’re now preparing to fuel our growth for 2019 and beyond. Since launching our beta platform in August last year, our user-adoption ratios have been very promising, resulting in our paying-user activation ratios being four times higher than those of Coinbase. Now, we’re entering into a position in which we can scale this growth up rapidly.

In line with the growing trend towards digital marketplaces, we’ll be tokenizing a portion of our company’s shares - granting investors an opportunity to become shareholders of the Blockport company through a fully-compliant STO.

Contextualising the Blockport STO

Over the past few months, we’ve been talking with Venture Capital (VC) investors that want to take on the prospect of helping us scale. Throughout these conversations, we instead realised that the concept of raising funds through a public sale allows us to be in control of raising capital in a sustainable and inclusive way, whilst also being beneficial to everyone in our community.

The strategy of tokenization allows us to distribute ownership of Blockport amongst the stakeholders in our ecosystem that share our vision - and also helps us to better match the demand we’ve received for a profit share model in the Blockport ecosystem.

Tokenization also allows for investor participation based on lower barriers to entry, whilst making it easier for investors to buy, sell or trade their shares at a later stage - if they wish to do so.

The wave of security tokens is inevitable, and it’s been shown by the likes of Forbes, Entrepreneur and Nasdaq that tokenized securities will play an integral role in ‘decentralizing’ traditional finance.

Lastly, we believe that this fundraising approach is a faster, more efficient way of raising funds and distributing equity. As a company operating in the blockchain industry, we’re excited to be one of the first exchanges in Europe to be launching an STO!

Want to receive updates on our upcoming STO? Sign-up on our official page:


The Blockport STO is planned to launch in March, and whitelisted participants will have the opportunity to purchase Blockport Securities (BPS).  

Throughout 2019, our aim is to raise between 15 and 30 million Euros by issuing Blockport Securities (BPS) in a fully compliant security token offering (STO), held in multiple stages and jurisdictions.

For our STO, we’re excited to be partnered up with Tokeny, a compliant security token issuance platform based in Luxembourg.

Tokeny is a member of ABBL (The Luxembourg Bankers' Association), EU Blockchain observatory forum, EEA (Enterprise Ethereum Alliance) and the Bitcoin foundation. Their platform has facilitated over 18 token sales across five continents, and has been used by more than 50.000 investors.

Information regarding company valuation, exact dividend structures and other key variables will be publicly announced before the sale starts.

First round: March 2019

The Blockport STO plans to include separate offerings to (i) accredited investors in the United States and (ii) to participants in Europe and other jurisdictions.

In the first round of our STO, we aim to leverage the ’small offering exemption’ of the European Prospectus Directive, which allows everyone within the European Economic Area to participate.

At the same time, accredited US investors will be able to participate in our STO under Rule 506(c), Regulation D and a separate offering under Regulation S under the Securities Act to investors in Europe and other countries. Our objective for this first round is to raise 5 Million Euros.

The reason for doing a smaller first round is mainly because of upcoming changes to the European ‘small offer exemption’, which include a lowering of the maximum amount allowed to be raised from 5M to 1M Euros. At Blockport, working within the lines of existing and future regulations is something we place a lot of emphasis on, whilst we also value the chance to offer our community an opportunity to invest in the Blockport company.

Regardless of whether you’re a professional and/or accredited investor, you’re able to participate in the first round of the STO, as long as you’re based in the European Economic Area. This exemption is not applicable to investors in the US, which means that only accredited investors in the US (under Reg D 506 c) can participate in the first round of the Blockport STO.

More detailed information about participating in the STO will be shared in the upcoming weeks.

* The execution and characteristics of this round depends on the outcome of previous rounds.

Second and third rounds

The second round is planned for relatively soon after the first round, with a preliminary starting date set in Q3 of 2019. In this round, we plan to allow investors from in- and outside Europe to participate in a 10m - 20m raise.

Additionally, we have planned a third fundraising round to be launched at the end of 2019. The exact timing and deal structure of this round depends on our upcoming raises, as well as our 2019 growth trajectory. It is expected that these subsequent rounds have a different valuation than the first round, and they are likely to be more closely positioned towards strategic, institutional and VC investors.

What are the characteristics of BPS?

The newly issued token, Blockport Securities (BPS), is a security token that is linked to a stake in Blockport. Each security token represents a 'depositary receipt' or 'certificate' for a corresponding share and, thereby, an indirect ownership stake in Blockport. This entitles holders to the dividends paid out on the underlying share if and when they are declared.

The BPS token grants owners no voting rights, as these vest with the intermediary issuing the BPS's, but will enable the token holder to profit from dividends payments paid-out by Blockport to its shareholders and to profit from the increase in value of the business of Blockport overtime.

Characteristics:

  • Fully compliant security token
  • Right to dividends / profit sharing
  • Linked to company shares
  • ERC token standard

Blockport Token (BPT)

The currently available Blockport Token (BPT), is a utility token that is used to access multiple features and benefits within the Blockport platform. It is designed as a strict utility token and will continue to play an integral role within the Blockport ecosystem and platform.

BPT’s value (utility token) is derived in terms of users and usage (network effects) and will drive the platform’s features, whilst the BPS (security token) is directly linked to our company’s financial performance (revenues & profits).

In other words, the STO takes place externally from BPT, and both tokens have completely different characteristics, use-cases and ecosystems. As such, the two tokens will coexist in harmony.

BPT buy program

Furthermore, Blockport intends to allocate a certain amount of funds raised in the STO to buy Blockport Tokens (BPT). The exact amount and timing of the BPT buy program will be disclosed at a later stage. This is an exciting component of our STO and is aimed to benefit all our users.

Keep an eye out on our announcement channel for more information.

Why are we raising funds now?

Our upcoming growth strategy is multi-faceted. This means that on the one hand, we’re gearing up to fuel our growth in other jurisdictions like the United States. We’ve seen that over 40% of our online traffic is from the US, a market with vast potential for our platform. At present, however, we cannot onboard users from the US onto our platform due to legal & regulatory limitations.

In order to accept US citizens as users, additional resources are required to cover the necessary legal, regulatory and operational costs for every specific US state that we would like to operate in.  

At the same time, funding is planned to be used to further grow our carefully-developed brand and presence within the European cryptocurrency retail market. Within this context, funding is planned to be mainly used for highly customised marketing campaigns across multiple retail channels, as well as product development and market localisation in specific countries.

This also includes localising our platform and implementing support for countries globally, with user from over 150 new countries being on-boarded onto our platform over the coming weeks.

These fore-castings aside, we’ve experienced first hand how hard it is for a company that deals with cryptocurrencies and fiat money, such as ourselves, to secure banking partners willing to break barriers and innovate alongside. The challenges of working with banking partners range from client acquisition policies to outdated technology stacks, badly documented APIs, and extremely high fees.

Thus, as a logical next step in our business strategy, we will apply for all necessary licensing to support fiat-to-crypto services, accommodated by our internally-built technology solutions. This will provide us with the necessary regulatory flexibility to optimise our solutions for both the ‘centralised’ and ‘decentralised’ worlds, whilst making us significantly less dependent on legacy banking partners.

How can I participate in the Blockport STO?
If you are not yet registered, and would like to receive updates about the upcoming Blockport STO, please visit our website below.



After registering, you’ll receive several emails with more information. When we disclose the official offering, you will receive instructions about signing up for the STO on our token issuance platform, powered by Tokeny. When you’re whitelisted for the token sale, you will get access to additional classified information about Blockport, as well as the detailed terms.

All personal communication regarding our STO will be done through email. Please make sure to register with the correct email address.

IMPORTANT NOTICES

This announcement is not for publication or distribution, in whole or in part, directly or indirectly, in any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction.

The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.  

This announcement and our official website does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, the securities referred to herein to any person in any jurisdiction, including the United States or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities discussed herein have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent an exemption from registration under the Securities Act.

For more information about this exemption statement visit this site: https://www.afm.nl/en/professionals/doelgroepen/aanbieders-beleggingsobjecten/conditions-using-exemption-notice
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