Why has it taken 2 years to unlock and list your token? What challenges have you needed to overcome to get Current where it is today?
The most prominent challenge for us has been the regulatory environment and how quickly it changed from the beginning of our project to where we are now. Fortunately, we had the foresight to use a SAFT for our token sale which helped us avoid a plethora of issues that we have seen many other projects face including most recently, Enigma and their lawsuit with the SEC. (For further context, we also filed a “Form D” with the SEC, a required step that many token projects failed to do.) Since the token sale in 2017, we have greatly changed our model, however, we are still very confident that it not only is compliant with all regulatory policies but also will provide value back to our investors.
One of the other biggest challenges for us is that there are so few exchanges that have been granted the appropriate licenses to trade securities in the United States. Fortunately, however, we do have a partnership with OpenFinance, and other large exchanges like Coinbase are in the process of building out infrastructure and acquiring licenses to support the trading of securities in the United States. So while it has taken 2 years to unlock the token, we are doing our best to do so in the most effective and speedy way possible to ensure the best type of launch not only for our investors but also for the company and the large user base we have built up.
Can you clarify why $CRNC is a security token?
One of the issues that we are facing as an industry is that a lot of people built a lot of tech, and they did so without thinking: “What’s the market for this product? Who’s going to want to use this?” I think that one thing we are seeing with a lot of these companies is that the products that they built are having issues with adoption with their target user base. Ultimately, for any company to be successful, it needs to provide value to its target market. If you look at a company like Binance, for example, their product not only provides value to its target market of cryptocurrency traders, but their token helps to facilitate this as well. Looping back around to the question of why we are a security token, many of the mechanisms that Binance’s token uses like token buybacks are properties of a security. Likewise for us, building a token model that supports proven and successful token economic mechanisms like token buybacks and dividends means that the token must be classified as a security.
Are you evaluating other exchanges?
We have relationships with a large number of exchanges, some which support securities, and some which don’t. Some of their CEOs are also close to platforms that support traditional securities that may be able to also list crypto. For example, while they haven’t listed many altcoins, Robinhood does support Bitcoin and Ether. So we have a variety of different options and we are always looking into the opportunities available to us.
How can people trade the token if Openfinance doesn’t support their country?
Right now Openfinance supports 50+ countries and they are constantly adding more. If your country is not supported by then, you will still be able to register with Securitize and trade the token P2P. If you are a SAFT holder in a country not supported by OpenFinance, we do have an OTC provider that we would be happy to make introductions with.
What is the difference between Securitize and OpenFinance?
Securitize is a transfer agent, which means their basic job is to ensure that we remain compliant across all jurisdictions. (Further, as a transfer agent, Securitize verifies and keeps a record of anyone who holds our token at any time.) Users will need to register with Securitize if they want to become white-listed to hold the token. For example, if someone is in a country not supported by OpenFinance, but they want to buy or sell the token, they can register with Securitize and they will be able to trade the token peer-to-peer. OpenFinance is our first listing partner for secondary market trading of our security token. They are the furthest along in the digital securities space, and you would go to OpenFinance if you wanted to trade the token like you would on an exchange like Binance or Coinbase. You can sign up for OpenFinance here. Even if you aren’t in a country supported by them right now, I would recommend that you sign up anyway, because as they add more countries to their list of supported countries, they will send you an email letting you know when you are able to trade on their platform.
How often would dividends be distributed, and will they be paid in $CRNC tokens?
We are still evaluating the regulatory requirements to be able to issue dividends, however, we will always disclose the final details of any distribution before it occurs. These dividends would likely be paid in either ETH, BTC, or a token tether to the value of USD.
Who qualifies for a dividend?
Anybody who owns the $CRNC token will be eligible for a dividend. It works very similarly to staking and how much you earn from the dividend is proportional to how much you are holding.
What is the lockup for team tokens?
Team tokens are vested for 4 years, and even after the time restrictions, we are not just able to sell them on the market. Because we are classified as a security, there are several hoops we would legally have to jump through to sell them, one of which would be making a public disclosure beforehand. (For example, most of our team tokens are still considered “restricted” and certain steps are required to make these tokens unrestricted and ultimately sell them, such as filing a Form 144 with the SEC.)
What conditions must be met before the token is unlocked?
One of the main ones is opening up exchange support for jurisdictions where we have a large number of investors. We are also refining components of our buyback and burn plan. One of the things we do quite a bit of is thinking through what regulators will want to see and what disclosures we need to make, and this is not a trivial task. Creating these plans appropriately is very important to us and should be important to all $CRNC holders as it will ultimately impact the underlying value of the token.
When will bounty and airdrop tokens be unlocked?
Last November, we wrapped up the KYC process for these participants on Coinlist. Since the issuance around bounty and airdrop tokens is considered a new issuance by regulators, there is a mandatory 1-year lockup on these tokens, which means that they will be unlocked by November 2020 at the earliest. We will be putting out a notice with more information on this ahead of the issuance.
How many total downloads do you have on iOS and Android?
We are currently sitting between 2.5–3 million downloads. We have recently had a ton of traction on the app and our reviews have skyrocketed in the last few months. Some other interesting statistics that we have mentioned before is that the average number of tracks played per day is sitting around half a million which translates to several millions of minutes of music listened to every day on our app. We fill approximately 150 million ad impressions every month and our users open up their screen to our lockscreen music player over 30 million times a month. We have quite a bit of usage within the product and have many clear indications of product-market fit. In 2020 we have many plans to improve the app around user retention, lifetime value, and virality, all of which should help improve the value of the $CRNC token due to its direct tie to the usage of our app.
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[PLEASE READ] Important legal disclaimer: No money or other consideration is being solicited by this communique, and if sent in response, will not be accepted. Our discussion may contain forward-looking statements that are based on our beliefs and assumptions and on information currently available to management. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “is designed to,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
These statements involve risks, uncertainties, assumptions, and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each such forward-looking statement, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. Forward-looking statements include, but are not limited to, statements about: developing and designing the Current network, including the $CRNC token and its future utility; the anticipated development and growth of the Current Network; maintaining and expanding our base of users; our anticipated growth and growth strategies and our ability to effectively manage that growth and effect these strategies; our expectations regarding regulatory developments and their effect on the Current Network, including the ability of applications on our network to develop a user base and a successful business model; and potential future listings on an exchange or ATS. We cannot assure you that the forward-looking statements will prove to be accurate. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. We undertake no obligation to update any forward-looking statements publicly, whether as a result of new information, future events or otherwise, except as required by law.