This week, the blockchain-based mobile betting app, ZenSports announced the issuance of quarterly dividend payments to SPORT security token holders in the coming days. Notably, ZenSports was one of the first betting platforms to embrace security tokens. Importantly, the dividend token payment amounts correlate with the platform’s total betting volume. In this way, ZenSports is able to anchor payment levels to company performance metrics.
Discussing the developments, ZenSports Co-Founder & CEO, Mark Thomas explained that his firm is a supporter of security tokens. He went as far as to state that “we believe it’s the future of securities.” He also spoke on why the company took this strategy in the first place. Thomas described how security tokens provide a better way for private companies to issue returns to investors. Consequently, security tokens streamline the entire crowdfunding process when compared to IPOs. Thomas believes that eventually, the entire world will utilize these unique financial instruments to streamline utility payment functions.
Notably, ZenSports also retains a traditional stock structure for investors and employees. This dual-use scenario provides the firm with more flexibility in the market. Additionally, it allows ZenSports to retain its decentralized philosophy, which is at the core of the firm’s business philosophy.
SPORT Security Token
The SPORT security token was available to a select few accredited investors in the United States through an SEC-filed Regulation D exemption. Also, non-U.S. investors were able to participate in the crowdfunding event thanks to a Regulation S exemption obtained by the firm. The tokens pre-sold in Summer 2018 and sold post-creation in December 2018.
In total, 5B SPORT security tokens exist in circulation currently. The token data breaks down into 3B held by ZenSports, and an additional 2B held by investors. Importantly, SPORTS security tokens are no longer available to investors from the platform.
ZenSports entered the market in 2018 as one of the first decentralized peer-to-peer sports betting mobile apps. The platform gained instant success due to a combination of factors. Anyone can create and/or accept sports bets with anyone else globally using the platform. This system completely removes the need for bookmakers. Consequently, the entire process is more secure, and efficient for all parties involved.
ZenSports Future Plans
According to company executives, there is much more crypto integration ahead. The company now plans to issue a utility token named SPORTS. Unlike its security token counterpart, SPORTS will function within the platform to facilitate a better UX. Users can make bets, deposits, and withdrawals using the token. Also, bonuses will be paid in SPORTS moving forward.
ZenSports – The Future of Betting
You got to hand it to ZenSports on their ingenuitive approach to the market. The company is sure to enjoy an additional confidence boost after issuing this latest round of dividends. You can bet to hear a lot more from ZenSports as they continue to pioneer blockchain solutions for the market.
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