How does our Token Exchange Campaign work?
You may be familiar with crowdfunding, but our Token Exchange Campaign (TEC) is not that. Nor is it a traditional investment round. This is a way of exchanging currency (either traditional or crypto) for Blockpool’s new cryptocurrency, BPL. The funds raised will be used to deliver proof of concept and contract work.
A new way to crowdfunding
Traditional fund raising often involves either delivery of a specific product (common on Kickstarter-style crowdfunding) by a set date in time or equity stakes via investment. Our Token Exchange Campaign is Blockpool’s route to an Initial Coin Offering.
All Blockchain solutions have a cryptocurrency as part of the technical infrastructure. For Blockpool our BPL control Blockchain is fundamental to all aspects of our business and the solutions we will deliver. We will also provide a net profit share every year to BPL holders.
The market sets the price
Cryptocurrencies have a value. That value can go up and down according to many factors and variables. Early blockchain cryptocurrency holders gained large stakes for little effort by being first in the mining route (that is by operating the blockchain at an early stage and processing more blocks, they earnt currency which gives them a higher stake and therefore more blocks to process and so on). A TEC, like ours, gives everyone the opportunity to take a stake.
We are distributing a fixed number of BPL coins — 25 million. The amount of money that we receive through the TEC will be used to determine the value of each token once the currency is forged and goes into circulation. So, a worked example would be:
Assuming all the money we receive (both traditional and crypto) totals the equivalent of 5,000 BitCoins at the close of the TEC, 30th June 2017. Dividing the amount raised by a number of coins by our total raised (5,000/25,000,000) gives a value of 0.0002 BTC per token. Each token will become a coin.
How our tokens will be distributed
Blockpool will start with a supply of 25,000,000 BPL, of which 20,000,000 will be distributed directly to those exchanging currencies for our tokens during the TEC. Blockpool’s shareholders (the founders) will receive 3,500,000 between them, 1,000,000 will be distributed for advisors, contractors, and then the remaining 500,000 tokens will be distributed for Campaign Bounties.
To find out more about the Token Exchange campaign which closes on 30th June 2017, please see https://blockpool.io/tec.html. Our full prospectus is available at: https://blockpool.io/docs/BP_ICO_A.pdf.