ZenSports Announces Dividend Payout on Its Cryptocurrency Security Token SPORT
SAN FRANCISCO, August 14, 2019 (Newswire.com) - ZenSports, the decentralized peer-to-peer sports betting mobile app where anyone can create and accept sports bets with anyone else without the need for a bookmaker, has just announced a set of quarterly dividend payouts that it will be making to all of its SPORT security token holders.
A few months after ZenSports launched the beta of its peer-to-peer sports betting app to select customers in September 2018, it created a security token called SPORT. SPORT was pre-sold in Summer 2018 and sold post-creation in December 2018 to accredited investors in the United States through the Regulation D exemption (SPORT has a Form D on file with the SEC) and to non-U.S. investors through the Regulation S exemption. The security token was created as a novel, blockchain-based asset which provides investment returns to investors without the need to wait for a formal exit.
According to ZenSports Co-Founder & CEO, Mark Thomas, “As a decentralized platform, cryptocurrencies are at the heart of our philosophy of how we believe the world will eventually manage all securities and streamline utility payment functions. We saw that there could be a better way for private companies to provide returns to investors other than simply having to wait for an IPO or M&A event in 7-10 years. Security tokens offer a streamlined way for doing that. Yes, we also have a traditional stock structure for investors and employees, but the notion of a security token as a means to provide investment returns is near and dear to us, and we believe it’s the future of securities. That’s why we’re super excited for today’s announcement.”
In addition to its SPORT security token, ZenSports announced a few weeks ago the launch of a separate, utility token usable for in-app betting called SPORTS (with an “s”). The purpose of ZenSports’ new utility token is to streamline the entire betting process for customers within the ZenSports mobile app, and to create a rewards and loyalty program for ZenSports’ top tier customers. The latter is done via a new “SPORTS Rewards Program,” whereby customers who bet with SPORTS are able to pay discounted betting fees, earn cash back for reaching certain betting milestones, and earn bonuses for performing other actions within the ZenSports app.
Structure of Dividend Payout
The structure of the dividend payout to SPORT security token holders will be as follows:
- Approximately 5B SPORT security tokens exist in circulation. ZenSports currently holds approximately 3B of the SPORT security tokens in reserve. The remaining 2B SPORT security tokens are held by token holders outside the company.
- All SPORT security token holders, not including ZenSports’ reserve supply of SPORT, will receive dividends.
- For each $1 worth of the SPORTS utility tokens in betting volume that transpire within the ZenSports app, the Company will issue a dividend to each SPORT security token holder. This is so that the dividend is tied to company performance.
- Dividends will be payable in SPORTS (at an exchange rate of $1 = 400 SPORTS, the exchange rate currently offered by ZenSports to customers in-app), other cryptocurrencies, or some combination thereof.
- The first dividend will be issued by no later than Oct. 9, 2019, for the quarter ending Sept. 30, 2019. After that, each remaining dividend will be issued within 9 calendar days after the end of the previous calendar quarter.
- ZenSports intends to continue dividend payouts indefinitely to security token holders on a quarterly basis, but reserves the right to adjust or suspend dividends based on company performance.
SPORTS Utility Token vs. SPORT Security Token
The SPORT security token is completely different from SPORTS utility token, and Thomas stressed that the two should not be confused with each other. The security token, SPORT, is a financial instrument for investors to invest into ZenSports and receive investment returns. The sale of SPORT security tokens was completed earlier in 2019 and is no longer open to investors. SPORT is not integrated into the ZenSports app in any way, shape or form. No deposits, bets, withdrawals, or rewards can take place in-app using SPORT.
SPORTS, on the other hand, is currently being offered as a true utility token on a fully functional application and active network. It is only used as a mechanism for betting and earning rewards through the ZenSports app and network. SPORTS has not, nor ever will be, sold to investors as an investment or with the potential to receive investment returns. To buy the SPORTS utility token, ZenSports users are required to wager at least 50% of purchased tokens before they could withdraw or transfer them. SPORTS is for betting, not for speculation.
ZenSports is available for download in both the App Store and Play Store, and is headquartered in San Francisco, CA.
Media Contact:
Mark Thomas
Email: mark@zensports.com
Source: ZenSports
