Mark Little
Jul 26 · 7 min read

Mark Little | CMO/co-founder

For as long as 18 months now - early supporters of the Pynk project have been making price predictions via our Price Prediction Tool.

In return for investing their time and prediction data, Crowd members have been earning Wisdom Points (WPs) with the promise of exchanging them for a share of Pynk’s profits in the form of Pynk Security Tokens.

With sincere gratitude to our Pynkster community from more than 50 countries across the globe (!!) - we are very happy to announce the process for converting WPs to Pynk Security Tokens.

Let me caveat this by saying the exact timing is dependant on a number of factors outside of our control such as sign off from lawyers and regulators. That said, we are fairly confident at this stage and are working hard to ensure we deliver on time.

PEOPLE POWERED INVESTMENT

The Pynk Community is a close knit group of like minded individuals and Pynksters are working together to create a new investment model.

While your claim to Pynk profits is relative to the performance and contribution of all other Pynksters in the community; we urge you not to think of other Crowd members as competition.

Afterall, the better your fellow Pynksters become — the stronger the data feeding our proprietary AI ‘Rose’, which in turn leads to higher returns for all.

The higher the Pynk profits, the more Pynk Security Tokens Crowd members stand to earn and the faster the value of your Pynk Security tokens will increase.

In addition, investors of money will see higher returns also — meaning the Pynk co-operative will grow faster as more money comes into the platform.

Pynksters are working together to build a People Powered Investment platform since ‘none of us is as smart as all of us’.

WHAT IS A SECURITY TOKEN?

Following the heady ICO days of 2017 and 2018, most of us in the crypto and blockchain space are fully aware of what a Utility Token is. For those who are not; Utility Tokens represent the utility of a company and access to the network. Following the introduction of smart contracts on the Ethereum network, they quickly became a favoured mechanic for blockchain startups to raise funding from early adopters - making ICOs the crypto version of Crowd Funding.

Unlike Crowd Funding however, ICOs do not leave investors with a legal claim to shares in the company. In many cases, ICOs were based on little more than empty promises soon to be broken.

Before we talk about Security Tokens, let’s understand what a Security is. For an investment to be classified as a Security under the landmark 1946 Howey Case — it must meet 3 criteria:

i. be an investment in money

ii. be within a common enterprise

iii. there is an expectation of profit from the work of the promoters or the third party

Once defined as a Security, the implication for Security Tokens is that they are ‘asset backed’ and this is a key differentiator from Utility Tokens. Security Token investors have a legal right to the underlying asset class. So for example, in the case of one of the very first Security Token Offerings (STOs) The Art Token — investors have legal ownership of a fraction of the underlying art collection.

For more on the future trend of Security Tokens, this recent panel discussion from the recent Barcelona Trading Conference is well worth watching and features Yoni Assia (eToro), Carlos Domingo (Securitize) and Philipp Pieper (Swarm).

Barcelona Trading Conference 2019: The Present and Future of Security Tokens

WHAT IS THE PYNK SECURITY TOKEN?

Pynk Security Tokens represents the underlying assets (money) under management by the Pynk trading company. Investors receive Pynk Security Tokens (or fractions thereof) in return for their money.

While today our proof of concept approach focusses on short term trading activities, the Pynk Security Token represents all investments made by the Pynk company which generates revenue by using Crowd Wisdom, AI and Expert Insight. Pynk also generates revenue streams by selling Wisdom of Crowd data to funds, governments and agencies to help predict the future.

Pynk Security Token

From Q3 2019 — every $1 of investors’ money represents 1 Pynk Security Token. As the value of the underlying assets increases over time, so the value of Pynk Security Tokens will increase correspondingly i.e. 1 Pynk Security Token > $1.

For more information on the model, please read the Pynk Paper.

CONVERTING WISDOM POINTS TO PYNK SECURITY TOKENS

Our global Crowd of price predictors who invest their time and data (rather than money) will convert earned Wisdom Points (WPs) for a share of Pynk profits. This share of Pynk profits is used to pay for the Pynk Security Tokens issued back to our Crowd.

The process of conversion from WPs to Pynk Security Tokens will be automatic and happen at the end of every quarter. The first conversion is planned to occur at the end of September 30th 2019, the second on Dec 31st 2019, the third on March 31st 2020 and so on.

Crowd members will be sent a unique code which represents the number of WPs they have earned and the exchange rate to Pynk Security tokens at that point in time. Note the exchange rate will vary each quarter based on the number of Pynksters in the Crowd (currently capped to 10k globally) and the performance of the Pynk profits for that quarter.

On receiving their unique code, Pynksters will be asked to complete the KYC process in the Pynk wallet (see ‘$ Invest — coming soon’ on left hand side of Beta Price Prediction Tool, launching early September 2019) and by submitting their unique code will convert their WPs to Pynk Security Tokens. For now, Pynk Security Tokens will sit inside the Pynk wallet.

Please note, under no circumstances will transactions be possible without first completing the KYC process.

HOW MANY PYNK SECURITY TOKENS WILL I RECEIVE?

In order to indicate how many Pynk Security Tokens you will receive — I will use a theoretical value of 19,386 Wisdom Points. According to our forecasts, we estimate this will be the average number of WPs earned across all Crowd members at September 31st 2019. According to our forecast on Crowd growth and Pynk trading profits for Q3 2019 — we estimated the value of these 19,386 WPs to be 11.6316 Pynk Security Tokens.

Please use this calculation to calculate the approximate value of your Wisdom Points. Note that this is an estimate only and subject to change based on above mentioned factors.

WHAT WILL BE THE FUTURE VALUE OF MY PYNK SECURITY TOKENS?

If that doesn’t sound like many Pynk Security Tokens to you, then bear in mind Pynk is building a new investment model with the ambition of managing $2bn within the next 5 years.

We have already seen the rapid rise in value of early Digital Assets such as Bitcoin ($10k at time of writing) and we are firm believers in the forthcoming growth of Security Tokens and other financial uses of blockchain technology, among institutional and retail investors alike.

Source: Pynk Pitch Deck 2018

CAN I SELL MY PYNK SECURITY TOKENS?

We are working on a private exchange within the Pynk Wallet that will be able to match you with another buyer from within the Pynk community i.e. a private sale. Both buyer and seller would need be verified via KYC process before the transaction can take place. If not available from the launch of the wallet, we anticipate this mechanism will be ready before end of 2019.

In the longer term, the Pynk Security Token is planned to be listed on Security Token exchanges. We are reviewing which exchanges are suitable for Pynk — but listing Pynk Security Tokens on a public exchange is not an immediate priority for us.

WILL MY PYNK SECURITY TOKENS BE SAFE?

Safety is of paramount importance to us here at Pynk. The central promise of Pynk is to give Pynksters the world over access to high returns while reducing the risk.

Example of myStake platform (Pynk wallet will be pink instead of blue!)

We will be issuing the Pynk Security Token via the myStake platform. These are ERC-20 compliant tokens sitting on a permissioned blockchain. These tokens can be cancelled and re-issued in the event hacking or theft. Furthermore, the underlying assets (money) are not sitting in the myStake platform and so cannot be stolen.

Our AI is constantly monitoring for cheaters within the Crowd and cheaters will be blocked from the Crowd with any tokens cancelled.

IMPORTANT NOTICE FOR PYNKSTERS FROM USA, CANADA AND NORTH KOREA

Due to regulatory reasons, members of the Pynk Crowd from the USA, Canada and North Korea will not be able to convert their WPs to Pynk Security Tokens in 2019. We are working with the relevant bodies in the USA and Canada to find a solution — however this is unlikely to be in place until 2020 (more details on this to follow). We expect that US and Canadian citizens will be able to receive competition payouts in cash (USD) in return for their WPs.

There may be other jurisdictions unavailable at launch (to be confirmed).

We hope the above explanation is clear, however in the event of questions and suggestions (which are always welcome from our Pynkster Crowd), please leave comments below or ask our admin team in our Telegram and Facebook Groups.

A BIG THANK YOU again to all who make up or incredible army of Pynksters — the driving force behind the social experiment that is Pynk. All at Team Pynk are excited to now be in a position where we can give back to our early supporters. Let’s do this!!

Mark Little

Twitter | Linkedin

Pynk

Pynk’s ‘Crowd Wisdom’ system combines our crowd, experts and A.I. to make smarter investment decisions. People Powered Investment.

Mark Little

Written by

FinTech entrepreneur, CMO & co-founder (pynk.io). https://www.linkedin.com/in/markdmlittle/ @mark_little2

Pynk

Pynk

Pynk’s ‘Crowd Wisdom’ system combines our crowd, experts and A.I. to make smarter investment decisions. People Powered Investment.

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