Why the Token Exchange Campaign?
Our Token Exchange Campaign will deliver the funds for us to complete the development of our unique technologies to deliver Blockchain real world solutions. When looking for a funding source, this was the one we chose. Why?
Start-ups have traditionally relied on seed funding with investors to provide initial working capital. The organisation provides a share of the equity in return for the funding and then will agree a set of milestones. The aim is then to grow the company rapidly either for acquisition or market domination. Normally only a few investors will be involved. Therefore, the future success of the company is shared amongst these shareholders.
Funding by the crowd
This has become popular through Kickstarter and other locations. Here, there is an agreement to deliver a particular product by a fixed point in time. Whilst equity shares are available, often it is merely to fund development and production. In this scenario, the risk is with the funders (though there are mechanisms to get the money back) and the rewards are gained by the developers and producers of the product.
In the past, we have seen most cryptocurrency based fundraising occur through mining. Therefore, those with the most powerful, bespoke computer equipment have been able to rapidly dominate a cryptocurrency. This gives them a large say in the blockchain. We do not think that is ideal. A small group of people can determine the price.
We have decided to deliver a fixed number of tokens. They will be converted into our BPL cryptocurrency after the Token Exchange Campaign is finished. We will forge the currency and then determine the number of BPL coins to be delivered to each investor who has invested their money (either traditional or existing cryptocurrency). We have also decided to restrict the growth of BPL to 5% in year one, reducing each year until it reaches 1% and then sticking to that level.
For us these are the benefits:
- We have expanded the range of potential investors by allowing traditional and crypto currency payments.
- A 5% share of our net profits will be shared amongst our BPL holders, we are spreading around any gains. The profits are distributed as more BPL and divided on the basis of the current coin holding of each BPL holder. Those who believe in our technology will share in our successes.
- We will let traditional market forces determine the value of stake of each investor in BPL.
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.