H3O — Europe’s first compliant security token

May 15, 2018 · 4 min read

Austrian-based HydroMiner issues H3O, a token similar to a traditional share.

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One of HydroMiner’s GPU Containers mining Ether and Ether Classic fueled by the river “Ybbs” in lower Austria

Many leading figures in crypto and the institutional investment sector agree that the future belongs to security and equity tokens. HydroMiner designed a security token for its investors for several reasons. HydroMiner’s H3O token introduces a model where mining profits from the operation go to the company, funds will be distributed for reinvestment and growth, in a tax friendly environment. With cheap energy and an effective cooling solution we have an average profitability ranging from 20%-30%, based on past figures. HydroMiner’s aim is to offer investors the best possible way to participate in the mining process, in terms of technical expertise, lean management, tax and legal status. We believe that cryptocurrencies should be as open and inclusive as possible. This is all in line with our attempt at creating a token which is a hybrid of traditional securities and cryptocurrencies in that it offers the rights, security, and protections of traditional securities as well as the flexibility of crypto-tokens. The H3O Pre-Sale starts on 29th May 9:00 am UTC, find out how to participate on our website.

That’s why the H3O-token will be one of the first tokens relying on a full capital market prospectus in accordance with European financial law, making it one of the most transparent, safe and open tokens. H3O will be Europe’s first security token that at a later stage will be convertible into an equity token fully compliant under EU regulations.

Features of H3O

  • It’s the next best thing to a traditional share
  • Continuous voting on operative decisions
  • Tag-along right

In case the shareholders sell off their company-shares, up to 80% of the profits are distributed to the H3O Token Holders

  • Option of dividends

It’s not a dividend token in the first place. For a growing company and its investors it is not advisable to distribute the lion share of the profits, because funds are needed for reinvestment. When the company succeeds, the token will grow in value and investors will benefit since we expect the mining business will remain profitable into the future. This assumption is based on our current mining operations numbers and track-record.

  • H3O will be traded on security exchange platforms in a compliant high-liquidity environment.
  • Full regulatory compliance as H3O relies on a full capital market prospectus under EU financial law.
  • Aligned interests between company management and token holder, the valuation of the token is tied to the performance of the company.
  • When the company IPO´s the underlying of the token will be changed into a real share of the company

Who can participate in the H3O Pre-Sale?

The tokenized H3O securities will combine the legal characteristics of participation rights with the advantages of the blockchain. Tokenized securities — unlike utility tokens — don’t give the investor access to a future product or service of a company. The investors participate in the performance of the company itself. Thus, the H3O token will be subject to the Austrian Capital Markets Act which results in compliance with Europaen capital market regulations. This is why HydroMiner will release a full prospectus during the ICO, following approval by the Austrian Financial Market Authority (FMA). Therefore Pre-sale Investors underlie certain restrictions (please visit our website for more information).

H2O Token Swap

The H2O token swap will be available with the start of the Pre-sale, to an exchange rate of 1 H2O : 50 H3O. If you would like to convert your H2O, please hold it in your wallet until main sale starts, which will be probably in Q3 this year, after the capital market prospectus is approved.

H3O Main Sale

After the presale, as soon as the capital market prospectus is approved by the Austrian authorities, the H3O main sale will begin, approx. in Q3 2018. The prospectus is currently under review. Due to regulatory requirements, the exact details and timing of the upcoming main ICO are subject to the prior approval of a capital market prospectus by the Austrian Financial Market Authority (FMA).

H3O Pre-Sale 29th May 2018 9:00 am UTC–31th July 2018 9:00 am UTC.

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