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Provenance.io Completes $20 million Security Token Offering

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Provenance.io Completes $20 million Security Token Offering

Mission Complete

Provenance has announced the successful completion of their recent security token offering. This event, which saw the sale of ‘Hash Tokens’, took place as a Regulation D offering. It attracted $20 million worth of investments from qualified investors.

This funding is intended to be used for the continued development of the Provenance blockchain. This blockchain utilizes Proof-of-stake, and facilitates the securitization on loans.

While Provenance has specialized in loans to date, they indicate their eventual expansion into various levels of finance – all the while, utilizing blockchain to bring new levels of efficiency.

Now that their STO has been completed successfully, Provenance lists various noteworthy events expected to occur throughout the remainder of 2019.

  • Q3, First hedge fund on blockchain
  • Q3, First real estate title entirely on blockchain
  • Q4, First digital mortgage on blockchain

Hash Tokens

The security tokens, which were distributed throughout the offering, are known as ‘Hash Tokens’. Each of these tokens serve as a means for governance, and value transfer for fees accrued through the Provenance blockchain.

These tokens have a fixed amount (100 billion), with value being derived through usage on the Provenance blockchain.

Commentary

In their press release, multiple representatives spoke on the potential of Provenance. The following is what each had to say on the matter.

Sheila Bair, former Chairwoman of the FDIC, stated,

“This is a seminal moment for the blockchain industry in financial services…Provenance.io has the potential to bring massive improvements to the industry, across asset originators, the buy and sell side, as well as regulatory benefits and better consumer protections.  In particular, it will provide loan-level transparency around the quality of securitized assets and a clear, unalterable record of ownership—two things that were sorely missing during the financial crisis.”

Jenny Johnson, President and COO of Franklin Templeton, stated,

“Blockchain technology will disrupt financial services in ways that unlock tremendous value through improving current processes but also introducing new ways to do business…We are excited to facilitate and support blockchain adoption because change will happen when the technology is embraced by the market. The technology platform combined with the ecosystem makes Provenance stand out.”

Provenance

Upon completion of the STO, Provenance has now become an independent company. Formerly a product of Figure Technologies, Provenance now has the means to develop and grow on its own accord.

Provenance was originally created and launched in 2018, with a focus on financial services, such as loans and financing.

In Others News

With the announcement of the Provenance STO being a success, promise is now afforded to various other companies looking to replicate these results in the coming months. Below are a few articles detailing upcoming security token offerings.

Kriptomat to Become Second Security Token Offering through DESICO

VMC – Connecting the Dots of Urban Mobility

Healthereum Announces Security Token Offering

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Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Security Tokens

VeVue Signs Partnerswith CBX for Token Launch

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VeVue Partners with CBX Exchange for STO

The blockchain-based social media platform, VeVue announced plans to host an STO in the coming weeks. The company intends to expand the platform’s capabilities with the funds raised. Now content creators have a more lucrative alternative to consider moving forward.

News of the company’s intentions first broke via an October 14 press release. In the post, the company announces its new strategy and partnership. As part of the firm’s new crowdfunding approach, VeVue partnered with the hugely popular CBX exchange.

CBX Exchange

For its part, CBX will be responsible for the sales, token issuance, and distribution of the VUE token. CBX is one of the largest crypto exchanges based in the Middle East. The firm operates a fully compliant EU exchange. Developers integrated both AML and KYC protocols directly into its trading platform.

VeVue via Homepage

VeVue via Homepage

CBX recently launched a campaign with Alibaba competitor GoJoyin in which the platform secured over $10 million in funding. The experience gained in this campaign will be critical for VeVue STO’s success.

VUE STO

The VeVue STO will commence on October 28, 2019, at 4 pm PST. Interestingly, the event is scheduled to only last 48 hours. CBX intends to issue 5 million VUE tokens to qualified non-US investors. Vevue also announced that there will only be 100 million VUE tokens in total available to investors. Of these tokens, 35 million are reserved for investor purchases.

Vevue and CBX Unique Strategy

CBX and Vevue have a unique strategy for their crowdfunding efforts. The company intends to host an STO monthly moving forward. Additionally, these auctions will be Dutch-style. Basically, the official token price is set after taking in all bids.

Highest-Price VeVue STO

This strategy enables the firm to receive the highest price for the total offering. For example, investors place their bids which include the price and quantity they desire. The firm will then accept the top 5 million bids for the tokens.

VUE Token Benefits

VUE token holders receive a portion of gross revenue collected via the VeVue social media app. Consequently, investors actively earn from VeVue’s ecosystem. The App provides content creators with a revenue-generating outlet. Here, users can create and monetize content such as videos easily.

VeVue Transaction Fees

Vevue charges a 5% transaction fee on the monetized content. This fee then enters into the dividend pool from which STO investors receive payments daily. Importantly, dividends are paid in VUE tokens. This unique strategy encourages users to create high-quality content to earn more tokens.

Next Level Social Media

Traditional social media doesn’t allow users the opportunity to earn from their content contributions.  In fact, the current social media giants provide content creators with zero payment for their efforts.

Social Media Heat

VeVue’s timing is impeccable as social media giants such as Facebook continue to confront lawmakers over a myriad of concerns. Facebook, in particular, appears to be in the target of regulators after announcing plans to issue its own native cryptocurrency called the Libra.

A Better Social Media Alternative

VeVue appears to have unlocked a better way to social media for everyone. Providing users with an opportunity to earn tokens for their content is a smart concept that has proved to be a great alternative in the past. You can expect to hear more from VeVue in the coming weeks as its STOs hit the market.

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NBA Quickly Shuts Down Dinwiddie Contract Tokenization

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NBA Quickly Shuts Down Dinwiddie Contract Tokenization

Not So Quick…

In retort to the highly publicised decision by Spencer Dinwiddie to tokenize his contract, the National Basketball Association (NBA), commented in a conversation with the New York Times.

Unfortunately for Dinwiddie, it would appear as though he is fighting an uphill battle in achieving his goals. The following is what the league has to say on his plans.

“According to recent reports, Spencer Dinwiddie intends to sell investors a ‘tokenized security’ that will be backed by his player contract. The described arrangement is prohibited by the C.B.A., which provides that ‘no player shall assign or otherwise transfer to any third party his right to receive compensation from the team under his uniform player contract.’”

Commentary

In response to this decision, Dinwiddie did not seem phased. Again, speaking with the New York Times, he had the following to say.

“When I was on the phone with the league, I told them it wasn’t an assignment. And they invited me to sit down with them and explain the offering, which is what I’m going to do.” He continued, What better way to be invested in a player as a fan than to have some level of skin in the game,” Dinwiddie told The Athletic. “With the way mine works, if I play well in that player option year and we split the profits up the first year of my new deal, it greatly appreciates the return on this investment vehicle.”

Tokenizing Contracts

While Spencer Dinwiddie represents the first athlete to actually attempt the tokenization of his contract, the idea is not brand new. There have been instances in the past where the idea was floated, to no avail.

If successful in his mission, Dinwiddie is, potentially, on the cusp of unlocking new forms of financial flexibility among athletes. For those looking to take an active role in securing their future, tokenization has the potential to make them more money. Interestingly, this stands to benefit the league, as well, as it opens a brand new avenue of fan participation.

Blockstation to Host DSO in Attempt to Lure Kawhi Leonard

Spencer Dinwiddie

At age 26, Spencer Dinwiddie is a 6’6” point guard for the Brooklyn Nets. A public proponent for blockchain technologies, this rising NBA star looks to help himself, and his peers, through financial flexibility.

Dinwiddie recently signed a lucrative contract with the Brooklyn Nets, which will see over $34 million paid out over 3 years.

In Other News

Over the past few weeks, we have touched on the topic of tokenizing sports contracts multiple times. The announcement, and subsequent release of details surrounding Spencer Dinwiddie, can be found in the following articles.

NBA Point Guard, Spencer Dinwiddie, to Tokenize Contract

NBA Guard Spencer Dinwiddie Tokenizes Contract

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NBA Guard Spencer Dinwiddie Tokenizes Contract

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Spencer Dinwiddie Tokenizes His Nets Contract

Sports fans could get a taste of blockchain tech much sooner than they planned thanks to one ingenuitive player’s strategy. This week, Brooklyn Nets guard, Spencer Dinwiddie announced plans to tokenize the first year of his contract. The news demonstrates how tokenization continues to create new asset classes in every market.

Dinwiddie seeks to raise $13.5 million to launch the DREAMS fan share platform via an STO. The concept is simple. The platform allows fans to own a share in their favorite entertainer or athlete’s career. Basically, you purchase a share in the profit-generating potential of a particular entertainer.

Dinwiddie – Tokenized Contracts are Better for Players

Players often receive large multi-year contracts. In many instances, especially the NFL, only the first year of the contract is guaranteed. Consequently, when a player gets injured or retires early due to unforeseen circumstances, the player loses the balance of the contract.

Spencer Dinwiddie via Elite Sports NY

Spencer Dinwiddie via Elite Sports NY

Tokenizing the contract allows players to get more funds upfront which allows them to do more with their earnings. Dinwiddie believes this strategy can give entertainers a more stable financial opportunity when compared to the traditional business structure.

What Do Fans Get?

Investors receive SD8 tokenized shares. These shares represent a piece of Dinwiddie’s contract and are named after his initials and jersey number. Each SD8 token represents a share in the first year of his 3-year $34.5 million agreement with the Nets.

Investors get paid dividends for their investment directly out of Dinwiddie’s bi-weekly paycheck. Importantly, investor’s earnings are secure because the Nets guarantee the first year of his contract. Also, Dinwiddie explained that he would give investors the option to extend for additional years if the strategy proves successful.

Investor Protections

The shares have several fan protections integrated as well. For example, if a player retires early, they forfeit their earnings to their shareholders. Consequently, the player would leave the league with nothing.

Exclusive Investors Only

Unfortunately, most NBA fans won’t get a chance to buy SD8 tokens. Only accredited investors may participate at this time. Accredited investors can show at least $1 million in the bank. Notably, the minimum investment is $150,000.

Speaking on his concept, Dinwiddie pointed out some key reasons behind the maneuver. For one, he believes that SD8 tokens provide investors with a safer alternative than traditional fiat during global recessions. He envisions a day when all athletes use this strategy to better hedge their earnings.

Dinwiddie spoke of a near-future where fans could trade contract shares of different players. Imagine trading your Dinwiddie contract share for a share in LeBron’s earning potential. The potential for this new asset class is extraordinary.

Paxos Trust Company

The Paxos Trust Company partnered with Dinwiddie to bring this unique strategy to the market. Paxos was the first regulated trust company to enter the blockchain sector. The firm handles the custody, escrow, and payment of investor’s dividends. As part of the concept, investors receive dividends in the Paxos stable coin – PAX. PAX is traded on numerous exchanges including Binance.

Dinwiddie is a Blockchain Pioneer

One thing is for sure, no matter how Dinwiddie’s NBA career turns out, he is always welcome in the cryptocommunity. This out-of-the-box strategy could provide a revenue boost to both players and fans very soon. At the very least, you got to give it to him for creating more liquidity in the market.

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