Beyond Global Trade AMA (07/13/18)

Will there be a BGT Stratis Sidechain?

Yes, we are planning on a Beyond Global Trade Sidechain on the Stratis Platform.

Can you elaborate on the various ways BGT will use different blockchain implementations? What role will Stratis play in this?
 
By using the (Stratis) ICO Platform as well as using Stratis on our blockchain platform.

Why does BGT need blockchain implementations? What problem will blockchain solve for BGT?
 
Blockchain aids in our Track & Trace platform as well as counterfeit prevention, Provence, product and factory compliances problems. BGT is a simple but POWERFUL total solution for Global trade.

What did you have to change from you initial idea once you chose to register with the SEC? Or was that your plan all along?
 
Considering that we are a U.S. based company, we had to comply with U.S. regulations (registering with the SEC).

Is BGT working with Stratis or also with other blockchains?
 
Correct, we are working with Stratis and we may use other blockchain platforms as well.

Referring to the Whitepaper: Page 31 — VIII. Technology => Smart Contract: Stratis Platform and Ethereum EVM. My question is to what extent or how is the Stratis Platform used/combined with Ethereum EVM?

The extent of both platforms (either used separately or in combination) are entirely dependent on customer needs.

I imagine counterfeit problems will be hard to fight if you can’t trust the entity to first put the data onto the blockchain for 100%. How will BGT deal with this?
 
In order to prevent counterfeiting, the process has to involve more than just technology. Our white glove service is key in dealing with counterfeits.

For the tracking you’re using a ‘Shield’ like the QR-Code (to retrieve all information from shipping, etc.). Does this shield have a patent or can it be licensed in the future? Or how will it reach the market?
 
A company that we are partnering up with has a patent scan code in the U.S., EU, and China that we will be using.
 
 
What’s your outlook on the recent U.S. regulations?
 
Compared to what it was a short time ago, it’s a bit more clear now with what the requirements are. However, there are still a number of uncertainties that need to be made clear with regards to regulations of cryptocurrencies (and ICOs). We do believe that the S.E.C. is moving towards the direction of recognizing pure utility tokens, but only in limited and strict circumstances. Our legal advisors are following these trends closely and we will continue to comply fully with S.E.C. regulations at their current state.

How are you going to attract investors? Some of your social media channels are low traction as of lately.

Correct, we have decided to take the path of raising funds privately now as opposed to what we were doing before — hence the slight change in investor involvement.

The private sale is only for accredited investors, correct?
 
Yes, actually all of our contributors must be accredited. Once our platform is completely built out and our token satisfies the S.E.C. utility token guidelines (as published by the S.E.C. last month), and applicable common law tests such as the federal Howey Test and state-level risk-capital tests- then we may be able to offer a utility token to non-accredited investors. However, at present we plan to do only accredited investors with our platform actively being developed.

Do you have a timeframe on the development of your platform?
 
About 6–12 months. But this may vary based on Company’s budgetary status and other relevant business or technical circumstances. 
 
 
Since you’re doing a two-token model (equity token and utility token) I see similar questions regarding the difference between them. Can you give us a brief summart on that?
 
The Equity token is a security and it provides investors with the same rights as holders of Company’s preferred equity. Currently, in the U.S., all tokens are considered securities until the the conditions exist to develop a true utility token that satisfies the guidelines listed in the S.E.C.’s latest announcements relating to utility tokens, and does not satisfy the Howey Test (and state-level risk capital tests).

There are no platforms that can currently (legally) trade securities, correct?
 
There are a couple security exchanges in the works. One of which is the Start engine — which I’m told will be ready to launch in Q3. There are also broker-dealer platforms that are awaiting approval as alternative trading exchanges such tZERO and few others. As of today, there are no security token platforms that can trade securities on an exchange.

What are some of the specific privileges/rights to the company that equity token holders have with BGT?
 
Preferred dividends, voting rights, ownership stake in the company (to name a few). We want to incentivize our investors to hold their security tokens.

So this is a true two-token model then. You aren’t raising funds for a security and then trying to use it as a utility right?
 
Correct, we’ll have the Security(Equity) token, and the Utility token once our platform is completed. That’s currently the problem with all ICOs, most companies do not understand that a two-token model is a potentially viable structure that offers significant value-add to investors.
 
 
For contributors outside of the U.S., are we allowed to invest?
 
Yes. We will also be conducting KYC/AML as well. We’ll file a Reg S so international investors are fine with us.

Regarding the utility token, scarcity is a very effective strategy to help with its value. Are there any future plans to introduce some sort functionality in your platform to increase scarcity of your tokens?
 
Yes! We will have an awesome gamification for our utility tokens. Some potential examples include limited edition merch, incentives, gifts, added services, etc. To add to that, our background is within the promotional, incentive industry. So we definitely know how to gamify a token.

Will you be marketing more to crypto once you get closer to finishing your platform?
 
Yes, however our main focus is really to build the ‘business’ and generate revenue and profit while also taking blockchain technology mainstream. We have the clients to potentially achieve this goal.

What is the biggest hurdle that BGT has had to overcome when trying to implement blockchain within your business process?
 
Great question! Getting the right talent to work on it in this field.

Speaking on that (the right talent), has the BGT team expanded since trying to implement blockchain?
 
Our core team has remained the same but we’re collaborating with other companies. We’re doing this on purpose to keep the overhead low which is much more effective. We just let the experts do their thing!
 
 
Can you give any insight to how knowledgeable some of our clients are about blockchain & how positive/negative they are about how it will affect their businesses in the future? Just want to gauge how far we are from mainstream adoption.
 
To be brutally honest, they don’t know the slightest truth about blockchain. HOWEVER, that’s great for us because once we display the technology and how they can benefit from it, they will likely not go anywhere else for business in this field.
 
 Are there any comments you’d like to close out with for this AMA? Anything in the near future?
 
We are continuing to build out platform and will be making announcements in the near future with major clients utilizing our technology (platform).