Q&A — 7: Primalbase ICO

1. Possibility of leasing, will it be only on the Waves platform? If my tokens are set ETH, I can not pass them on lease?

Leasing tokens is currently available only on Waves Platform, and is not yet possible on other platforms. If you want to keep or use PBT, it can live on Ethereum blockchain, however, if you would like to lease it to someone, it is only possible on Waves blockchain. Using gitwave, one can transfer tokens from Waves blockchain to Ethereum blockchain, and vice versa, and keep it in any wallet.

2. What’s the benefit to non-investor users to use your facilities over all the other ones already established?

If we are talking about the part of our project based on traditional real estate relationship, we are certainly competing with existing shared workspaces providers. We know that we should develop a product that will be interesting to all tenants, and we will try to do so. We have a goal — to establish tech hubs, as we are interested in development of blockchain technology, we are certain that we will manage to attract many tech projects in general, and blockchain-related projects

3. If a substantial number of TOKEN holders decide to rent out their spots but the actual number of offices is insufficient at the time… how will you decide who gets to rent out and who does not?

All transactions are peer-to-peer, besides, leasing of token will be done through a mobile application, which processes the data on availability of workspaces. Therefore there won’t be a situation that you showed up to the office and there is no spaces available.

4. I do not have a need in the “chair and table” in Amsterdam or Berlin. But I need a virtual office, simple maildrop solution + very rare access to meeting room. Maybe it is possible to offer people something like that?

It is worth mentioning that Primalbase infrastructure is not limited to office spaces only, it is extended to a number of other services and tools. Maildrop solution can be one of those services.

5. What about the blockswap technology you’ll use for swap the tokens between the chains?

As was mentioned before, we are not deploying blockswap. Transferring tokens between blockchains is done through gitwave.

6. What is the requirement for BTC to send a wallet? Can one send it from: https://blockchain.info online wallet? From myetherwallet?

You can make a payment from any external service, including light-weight wallets, hard-weight wallets, or any exchange platform.

7. I just want to know why the tokens should increase in value. How are profits from the company distributed to token holders? Using the space and leasing your tokens plays no role in this equation.

The only way for you to start using coworking space is to have a token. As number of locations open up and more people know about it — the value increases. On top of that we need to cover our operational expenses by renting out offices, which means advertising and sales, which results in people finding out about Primalbase, and wanting to get an access to coworking. There is a lot of marketing efforts that will be done on our side for operations by product of which becomes a marketing for PBT thus creating more value for investors. Either via new customers buying the token outright creating buying pressure or leasing the token for the period they need, generating dividends. Profits are not distributed to token holders, this is not an equity.

It’s really simple supply and demand, with capped supply and ever growing demand for the service due to location expansion (those who knew about it) and product discovery mechanisms (those who didn’t know before).

8. The terms and conditions do not specify the rights of the token holder with regards to the “functional” of the project. Could you elaborate on this point considering that the main website explicitly mentions specific access rights?

Functional of the project is described on the website, as it is not mentioned in the terms — website prevails here and describes what is not being described in the terms.

9. The token holder having no specific rights whatsoever to claim a share of the profits? Feel free to explain why one should buy those tokens, other than speculation = buy the tokens early with the hope of selling them at a higher price later. While Primalbase can cash the early token buyers’ money straightaway, with no obligation towards them. How is this not a negative sum game for the investors? How is this not a pyramid scheme?

It is illegal to give the specific rights for the profits share, that would be a security listing, and this is not our case. With regards to pyramid scheme, by definition a pyramid scheme is where early investors are rewarded with the money from new investors, which makes zero sense in our case as well, as there is no split or link between investors. In regards with the reasons to buy the token, there is a whole section of the website describing it, but in short — essentially 1 token gives you a right to book a place at any given date subject to availability.

Part of our business concept implies renting out the office spaces under traditional business model, tokenized coworking space is only available for those with the token,. There is a limited number of tokens, it makes sense to buy it for a few reasons depending on your goals. If you are travelling a lot in those cities and don’t want to have a permanent office in all of them but need a place where you know you can work with the same level of service you buy the token and use it for the rest of your life. If you are not interested in actually coming in and working, but rather lease that token to someone who would like to use the space — then you can generate some cash flows for yourself. As time progresses — the amount of people described in the first example (aka the demand) goes up but the supply still remains the same and never changes. Price goes up, whilst the token is generating revenues in a leasing market. You’re generating flow while also the capital is appreciating.

10. It seem to me that it involves a whole lots of trust to begin with. Or else, this will seem more to me like a gamble and not an investment. There are not enough figures to compare with. Just a general business concept how Primal base is going to move forward.

You have to remember that it is indeed a completely unregulated area, so in theory there are no guarantees given on anything here, that is why we have people coming forward and supporting the project that know it from the inside and know about the intentions. We strongly believe that we can deliver value to our participants but in an unregulated area — all of that is based purely on people’s reputation. This is not a regulated listing, or Venture Capital market, it is a crowdsale in crypto world, same rules do not apply, there are actually no rules hence the word ‘unregulated’, but if you are willing to take that calculated risk and judge for yourself then you can also be rewarded and we’ll put our best efforts on our side to do so.

11. So these tokens are for life, with no expiry date. Let’s suppose for a moment that you’re not going to run off with the investors’ money (even if there’s nothing preventing you from doing so) and you actually use it to purchase / rent office locations. How is the company going to stay in business in the long term, when faced with the recurrent costs of maintaining the purchased/rented office locations, other than by releasing new tokens, thus depreciating the existing ones?

Part of the space is dedicated for that. We rent out the offices for fiat currencies to the business, we’re doing so already at our location in Amsterdam. The money that we get from the rentals are paying the operating costs of the business.

12. In your business model, renting office space to non token holders is what keeps the business profitable, while no revenue comes from the tokens other than the one from their initial sale. Therefore, in the long term, the token holders will be a burden for your business, taking away otherwise rentable office space. How are you not going to find ways to get rid of them?

The whole project is based around the community, why get rid of it? For the sake of making few extra ‘000s a month? That makes zero sense. Reputation is key, if we do not reward our community properly, we will not be able to do any further expansion.

13. Exactly what property do you have title to? What do I own as an investor? What’s that-the token doesn’t represent any real world ownership in property or the business, you say. Then why would anyone give you a stupid amount of money in an irreversible payment system when I can just get a global 24/7 access WeWork membership.

There is no real asset ownership hence the word crypto. This is not a VC forum and it is not a raising series Z round under gazillion valuation. You can buy a token now, use it or lease it, then sell it (doubtfully at a lower price since the project will be already built). Scenario 1: you buy a token, use the space for 12 months in multiple locations, then lease it for 12 months and make money, then sell it (say even at face value). Scenario 2: you pay for 24 months at we work in different locations. In scenario 1 you’re not spending anything but potentially making good money. In scenario 2 you’ve spent anything between 5–10K depending upon number of locations.

We are looking to build a community of like-minded people. This is not “get rich quick” scheme.