7. The IOB TokenWhat is the IOB token?IOB Token is a security, or asset, token. While not the equity of the company, its’ investors are entitled to receive certain profit distribution in the form of a dividend and to have rights to certain other privileges the company offers.
What is it used for?IOB Token is ever evolving. It will fulfill several functions during different phases of our business development. It is:
- a tokenized investment capital
- a reward mechanism on the Social Investment Platform (SIP)
- a reserve requirement and trading discount using IOB tokens on the International Regulated Exchange Network (IREN) and
- the “gas” or “power” for the ONE Finance Network (the IOB Mesh).
Although IOB Token functions as a utility on our SIP, IREN and Mesh, we still consider it an asset from our investors’ point of view and will manage it in the regulated manner.
Once the ONE Finance Network goes live, IOB Token will effectively be transformed from a security token into a cryptocurrency.
Why is IOB a Security Token instead of a Utility Token?All token with a fundraising activity and expectations of a profit by its investor should be classified as securities. Therefore, it is in fact a security token.
Securities laws have been developed and continuously refined for decades. Security tokens would inherit a wealth of legal precedents that would illuminate tokenholders’ rights, protections and expectations. Additionally, they would clarify duties and obligations of the issuer.
The IOB’s Smart VC™ is an improved model over existing VCs that brings profitability to individual and institutional investors.
We acknowledge that IOB token is a security, and we acknowledge it as an investment. We therefore provide tokenholders with benefit of dividend and other rights. IOB security token still features significant “utility” attributes; it will still be used in native transactions on our Social Investment Platform (SIP), International Regulated Exchange Network (IREN) and The ONE Finance Network (the IOB Mesh, 1fin.network).
Moreover, the recognition of such a security token compels us to be transparent with our tokenholders, and to be held with the same disclosure and governance standards and requirements as a listed public company such as AAPL and AMZN.
Which wallet is used for IOB Token?At present, IOB Token is using ERC20 standard. It could be stored in any ERC20 wallet, such as IMToken, MyEtherWallet and major brand-name hardware wallets. It may be swapped to Universa mainnet and our own IOB MESH network in the future. We also consider cross-chain compatibility.
Does IOB make dividend distribution every few months?Unlike bonds with a fixed interest payment schedule, our dividend distribution are not set at a predetermined schedule. However, we are committed to distributing 100% of the net profit generated from our investments and operations. Also unlike most VC funds that usually take 3–6 years to see first profitable exit, our blockchain-related investments might have the potential to shorten the profitability cycle from several years to several months.
As we make more (good) investments and expand more profitable operations, our net profitability may be more and more predictable. We can therefore be able to make more frequent profit distributions with better guidance.
When will IOB be listed on exchanges?At this time, there is not a single exchange in the world that can legitimately list or trade security tokens. We are in touch with several trading system builders who are applying for official trading authorization with SEC or the European financial authority. Moreover, we are very encouraged that several foreign stock exchanges are now actively conducting token transactions in Gibraltar, Germany, Stuttgart, Canada and France. Even Nasdaq made a statement to do so in the near future. We expect to be listed in Q3.
How can I open a trading account when IOB Token is listed?The exchanges set their own KYC and trading account requirements. The IOB will be listed on multiple exchanges and you need to contact each exchange to set up a new account.
Can I use fiat currencies to trade IOB tokens on the exchanges?Many “exchanges” today cannot accept fiat trading, because they are unlicensed and are not qualified to handle money, or do not have a broker-dealer or authorized forex dealer licenses. We expect the security token trading platforms/exchanges are to be fully licensed and will be able to handle fiat currency trading. Some of the exchanges under discussion with IOB can even support fiat trading with foreign investor accounts.
Do you have a whitepaper?We upgraded our original Whitepaper to a long-form Offering Memorandum in October, 2017. Currently, it is currently being reviewed by lawyers in the US and Germany. We will re-publish it once the lawyers give us the green light.
Where do I fill out the KYC forms?We have closed our in-house KYC processing at the end of our pre-sale last year. As we are filing for the official approval of our public ICOs, we have hired third-party compliance firms to process any future KYC applications. Stay tuned.
Can I still buy IOB Tokens?Yes. We are currently planning the first round of public offerings in the US and Germany to institutional investors, and general investors once the prospectus filings are approved subsequently.
How many tokens will be issued overall?The total supply of IOB tokens is 1,000,000,000. Similar to the Total Authorized Shares in the listed companies, it does not mean that the “hard cap” is 1,000,000,000 as it is almost impossible to issue this many tokens in 10 years. The amount and each “hard cap” during each phase to be raised depends on the demand for the investment projects and our business needs at that time. So far IOB has issued approximately 14 million IOB Tokens. The most recent (June 2018) ICO plan is issuing 10 million with an estimated circulation of 20–30 million in 2018.
How many ICOs will there be?5–7 in the next 3–4 years, depending on when and how much we need for investments, and how many good projects we have access to. We do not want to hoard money, and this is why we abolish the ‘Annual Management Fee.’
So many more times! How will IOB protect earlier investors like me?When more IOB Tokens are being issued, you are not simply being diluted. We call each of our offerings an Interactive Crypto Offering. We will consider the value of such a new offering and what kind of additional returns it will bring to our business, the new created value for the existing tokenholders, the current trading price, and many other factors to make sure that each new offering is not a dilutive action.
With each new offering, we want to create more value for you.
Can Chinese investors participate in the ICOs?No. According to the Chinese regulations, Chinese investors are not allowed to participate in any ICOs at this time.
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