Sweetbridge Launches Token Crowdsale Platform With Focus on User Incentives and Regulatory Compliance

by PaymentsJournal 0

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Binkabi, Dcntral, and BuilderChain join as initial partners that will operate on platform

Phoenix, Arizona — January 9, 2018 — Sweetbridge Inc., the global blockchain alliance that is developing protocols to enable frictionless commerce and interest-free financing for individuals, businesses, and enterprises, has today announced that it has released its crowdsale platform. Blockchain-based companies Binkabi, Dcntral, and BuilderChain have joined as the first companies that will use the Sweetbridge platform to launch their crowdsales. Details on the economic structure, methodology, and processes available to Sweetbridge Alliance members are outlined in two newly-released whitepapers covering the Sweetbridge Crowdsale Platform and the Discount Token crypto-economic model, which can be downloaded from the company’s website.

Sweetbridge CEO and Chairman Scott Nelson said: “An important component for the success of industry companies is the establishment of a crowdfunding structure and methodology that is fully compliant, tax-efficient, and fair to investors and users. After conducting extensive legal and regulatory research, we have designed an economic framework that meets all of these requirements and will enable blockchain startups to conduct their token crowdsales with the utmost efficiency and compliance. We have created an optimal platform for projects to conduct their token sales with a focus on long-term growth.”

The Sweetbridge platform will create an incentive structure, giving discount tokens an intrinsic value based on their customer utility, in a similar way to traditional assets like commercial real estate. Based on a “social capital” methodology, companies that conduct their crowdsales on the platform must use an incremental token release, called a “slow drip,” in which additional tokens are only added when the network grows. The slow drip of tokens holds the company accountable for delivering value, aligns the incentives of stakeholders, ensures that tokens are not classified as securities, and protects them from “pump-and-dump” trading techniques.

Aleksandr Bulkin, co-author of the whitepaper and co-founder of CoinFund, a blockchain advisory firm, said: “Decentralized finance offers a significant promise to create new types of incentive alignment between organization’s stakeholders. In my view, Sweetbridge is uniquely positioned to lead the charge in this effort by offering a holistic crowdfunding and economic model that ensures ongoing long-term customer-driven cooperation within and around blockchain projects. Because correct incentive alignment ultimately offers a boost to any effort, the value of the Sweetbridge approach is to propel the best projects forward to create significant value in the real world.”

To ensure regulatory compliance, Sweetbridge is creating non-profit and corporate entities in Canada, Estonia, Gibraltar, Hong Kong, Japan, Liechtenstein, Singapore, Switzerland, Taiwan, the U.K., and the U.S. to create flexibility for changing regulatory requirements. In addition, crowdsale participation requires a rigorous AML/KYC process and secure login key with two-factor authentication. These steps will facilitate the process of finding global banking services to work with crypto-focused projects.

Binkabi, a blockchain-backed platform for cross-border agricultural trading; Dcntral, a blockchain-based software platform that enables cyber-secure exchange of value and automated transactions for the machine economy; and BuilderChain, a marketplace for the construction industry powered by blockchain, have joined as the first companies to use the Sweetbridge model to conduct their token crowdsales. Their use of Sweetbridge’s innovative platform represents a significant step in advancing this sustainable and compliant method of conducting token crowdsales.

Binkabi CEO Quan Le said: “As a Sweetbridge Alliance partner, we are able to leverage and contribute to the best thinking in the space of global supply chain on the blockchain today. We benefit from best practices and common infrastructure that Sweetbridge has created for the alliance. In addition, Binkabi will greatly benefit from Bridgecoin being used as a stable token for settlement on our network as we work to solve long-standing supply chain challenges, like funding costs and liquidity, in developing countries.”

Dcntral CEO David Cohen said: “The Sweetbridge Alliance allows Dcntral to concentrate on building the best cybersecurity products in the world, while Sweetbridge brings us under their compliant framework for a token crowdsale. Our membership in the Sweetbridge Alliance also provides us with the opportunity to network with the best companies in the world who are building secure state of the art blockchain based supply chains. This allows us to concentrate on building great products, while the Sweetbridge Alliance helps us raise money and find customers and business partners for our products.”

BuilderChain Founder Don Bowden said: “The ability to fund and build a pipeline of future projects using the Sweetbridge discount token economic model and go-to-market methodology offers a unique and compliant new path to capitalization for real-world businesses.”

In order to conduct a token sale over the Sweetbridge crowdsale platform, a selected project must restrict spending of funds raised in the crowdsale to the manner outlined in its original ICO documents, and any material changes to crowdsale fund spending must be approved by token holders. In addition, 10% of the initial crowdsale release must be sold to professional or industry investors who perform extensive due diligence on the project in addition to that conducted by Sweetbridge.

About Sweetbridge

Sweetbridge sponsors the development of blockchain-based economic protocols and applications to transform high-friction global supply chains into Liquid Value Networks. The Swiss-based non-profit foundation is gathering interested industry technologists, blockchain projects and open-source contributors from around the world to form a blockchain alliance. The shared goal is to transform brittle, industrial-era commerce through decentralized industry ecosystems that create a faster, fairer value exchange, unleash working capital, better utilize resources and optimize talent for the benefit of all participants. To learn more, visit Sweetbridge.com or follow @sweetbridgeinc on Twitter.

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