In this article, we explain the value of our upcoming STO to our investor community, and highlight what it means to become one of the first shareholders in the Blockport company by buying BPS tokens. When you haven't whitelisted yourself for our STO yet, you can do so here.
16th of April we launch the first round of our STO. Find out more on the website.
Key takeaway points:
- Blockport is one of the first exchanges in Europe to launch an STO.
- Investors receive Blockport Securities (BPS) in exchange for a minimum investment of EUR 500.
- Investors will receive (indirect) economic ownership of Blockport, as well as benefiting from a potential value increase in the Blockport company.
- Through BPS, investors are entitled to profit sharing via dividends.
- By holding BPS, investors will receive exclusive access to annual meetings with Blockport’s board and management team, including financial reporting.
- BPS holders will be included in key product development feedback processes.
On the 15th of April 2019, Blockport is launching a Security Token Offering (STO) in order to raise capital to fuel the platform’s growth and international expansion.
In this STO, investors can buy BPS tokens that are linked to equity in the Blockport company.
Why an STO?
The STO model builds on current fundraising methods by enabling businesses to sell securities that are for example backed by equity, indebtedness, or assets in a tokenized form. Using the STO, companies can raise capital in a way that may circumvent the traditional, often drawn-out venture capital route, whilst enabling them to democratize their equity holdings amongst a broad range of shareholders.
STOs also provide greater flexibility with respect to the type of security that can be offered, greater geographic reach and, potentially, greater liquidity.
Furthermore, the tokenization of shares can allow 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.
In our case, raising funds through an STO allows Blockport to be in control of raising capital in a sustainable and inclusive way, whilst also benefiting stakeholders in our community.
The strategy of tokenization allows us to distribute economic ownership of Blockport amongst the stakeholders in our ecosystem that share Blockport’s vision - and also helps Blockport to better match the demand Blockport received for a profit share model in the Blockport ecosystem.
As a company operating in the blockchain industry, we’re excited to be one of the first projects in Europe to be launching an STO!
What are we offering?
With Blockport’s STO, investors receive Blockport Securities (BPS) in exchange for an investment in EUR, USD, Bitcoin or Ethereum. The Foundation will accept investments from investors in the amount of 500 Euro or more (or the equivalent thereof in USD, BTC or ETH, as detailed in our Investment Memorandum). BPS is priced at 100 Euros per token.
What are BPS holders’ rights?
A BPS entitles the Holder to an (indirect) economic right to the proceeds paid out by Blockport Holding B.V. on the underlying non-voting shares over time.
A Holder is therefore entitled to (i) receive pro rata dividend payments on their BPS subject to the Management Board and the General Meeting resolving to pay out dividends to the Shareholders of Blockport Holding B.V. and, (ii) profit from a potential increase in value of the BPS over time. See the visual below on how the dividends structure works.
What are the benefits of receiving Blockport dividends?
Dividends will be distributed directly to the Holder’s wallet, in the form of cryptocurrency (based on the daily actual exchange rate), or to the Holder’s bank account in fiat currency.
The Management Board will prepare annual accounts and will decide whether to declare dividend payouts on a yearly basis. These payouts are based on Blockport’s net profit and amount to be reinvested in the company.
Additionally, if the value of the Blockport company increases, so could the value of BPS tokens, since they are linked to shares in the company.
Annual BPS holder meetings
By holding BPS, investors will receive exclusive access to annual meetings with Blockport’s board and management team. This includes being provided with insights into the company’s overall performance, financial reports, and other key management data.
Private product feedback group
Good product design is an integral value that sits at the core of our platform. As investors in Blockport, we want BPS holders to play a role in the decisions that determine the direction for our platform.
Therefore, BPS holders will be invited to engage with our product team, through which they will contribute to feedback processes. This enables them to directly provide feedback on key product decisions and our development trajectory.
The potential of BPS
As mentioned, BPS holders are entitled to dividend payouts on a yearly basis if and when they are declared, which will be based on Blockport’s net profit.
Additionally, BPS holders can benefit from a value increase in the Blockport company over time, since BPS tokens are linked to company shares.
Although it is not possible (from a regulatory standpoint) to provide financial projections of Blockport’s future profit and value, it is worth outlining one of our competitor’s performances as a possible benchmark.
Coinbase, our biggest competitor and best known exchange in the US, had an annual trading volume of 70 billion USD, generating 1.3 billion USD worth of revenue and 456m USD in profits for 2018.
In 2013, Coinbase was valued at between $15 and 25 million, a figure that isn’t far from Blockport’s current valuation for the first round of our upcoming STO.
In 2013, Coinbase launched a Series A equity raise, through which a total of $6.1 Million was raised. Five years later, Coinbase has completed its 8th funding round, raising $300 million, and achieving a valuation of $8 Billion (Source: Crunchbase). This means that within a five year timeframe, Coinbase’s valuation grew by approximately 40 000%
Note: The numbers provided in these calculations are rounded estimations, and are in certain cases from unaudited sources.
The Blockport STO
On the 15th of April, we’re launching our own equity-raise for the first time.
Based on the growth that we aim to achieve over the coming years, we’re excited to be launching this raise in the form of an STO, in that it enables a multitude of investors, both retail and private, to be a part of our journey and growth trajectory.
The Blockport STO is open to the general public in countries within European Economic Area (EEA), as well as accredited investors in the US.
Blockport is an Amsterdam-based, fiat-to-cryptocurrency trading platform that strongly focuses on usability and social trading features to provide a secure, efficient and enjoyable experience to its users.
The Blockport platform is connected to external exchanges and aggregates liquidity through its smart-order-routing system to automatically offer the best prices to its users.
In the coming year, Blockport is building on a hybrid-decentralized architecture that allows users to trade with high performance, whilst safely storing their funds on a blockchain wallet, meaning they own their private keys.