(via TheNewswire)
As of the end of Q1, the inventory held for Staking had appreciated by 151.9%, as compared to
Since the end of Q1, using additional capital from the Offering, the Company has acquired ETH (Ethereum token), DOT (Polkadot token), and BNB (Binance token), and initiated Staking of these crypto assets. In addition to Staked digital assets, the Company also holds a balance of 28.0 Bitcoin as of the date of this news release for the purpose of purchasing additional crypto assets for Staking.
Below is a table of the Staked Assets owned by
Tokens.com Staked Assets:
------------------------------------------------------------------ |Blockchain (Token)|Quantity |Current Price*|Simple Staking Yield| |----------------------------------------------------------------| |Polkadot (DOT) |228,963 |$37.56 |14.10% | |----------------------------------------------------------------| |Ethereum (ETH) |2,053 |$4,017.95 |8.20% | |----------------------------------------------------------------| |Binance (BNB) |4,946 |$667.56 |18.03% | |----------------------------------------------------------------| |Orchid (ROSE)** |9,123,200|$0.14 |18.00% | ------------------------------------------------------------------
Staking returns are subject to change and the figures above represent a current simple yield provided by each token.
* As of
**
“We are excited to be scaling our proven business model, and be putting capital to work efficiently during a time when DeFi and NFTs are at an inflection point in terms of global recognition, use, and adoption. We believe that the crypto assets being Staked by
The world is rapidly digitizing and digital assets are expected to play a key role in this global transformation. The COVID-19 pandemic has accelerated and brought increased awareness to this trend.
- The macro environment, fiscal stimulus and democratization of finance is accelerating adoption trends towards blockchain technology and the continued digitization of assets and financial products and services. The Company believes this movement is here to stay and still in its infancy when it comes to broad adoption. The leading use cases today are DeFi and NFTs, each of which have seen increased adoption and growth globally. As of this news release, there is
$80 billion locked in DeFi1and over$2 billion was spent on NFTs in Q1 20212.- A magnitude of applications for DeFi and NFTs are being built on programmable digital assets platforms such as Ethereum and Polkadot. These applications pay fees to Ethereum and Polkadot each time there are transactions.
Tokens.com plays an essential role through Staking or transaction validation services and is compensated in tokens for this service.- There are two primary ways to validate transaction blocks on a blockchain: crypto-mining or Staking. The Company believes all key new digital asset platforms are being built on Staking technology, not only because it is environmentally friendly, but because it is faster and has exponentially more throughput than traditional crypto-mining.
-
Tokens.com views Staking as a far superior model to crypto-mining because instead of expending computational energy that requiresexpensive hardware, Staking uses ownership to perform the exact same transaction validation service. Stakers get to own appreciating crypto assets while crypto-miners have to own rapidly depreciating hardware. This is why Staking is viewed as the environmentally friendly alternative to crypto-mining.
Pillars of Tokens.com’s next generation business model:
Ethereum:
Ethereum is not a currency; it is a decentralized computing platform that provides the infrastructure necessary for transformational trends and decentralized applications such as Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) through its programmable asset, ether (ETH).
Ethereum launched in 2015 as a decentralized, blockchain-based global supercomputer to serve as the foundation for an ecosystem of interoperable, decentralized applications powered by token economies and automated smart contracts. Assets and applications designed on Ethereum are built with self-executing smart contracts that remove the need for a central authority or intermediary. The network is fueled by its native cryptocurrency, ether (ETH), which is used to pay transaction fees on the network. Being open-source, programmable, private and censorship resistant, Ethereum forms the backbone of a decentralized internet, which has already spawned significant innovation like initial coin offerings, stablecoins and DeFi applications. The ETH token currently has a market cap exceeding
Polkadot:
Polkadot is a network for interoperable blockchains. The Polkadot blockchain network allows blockchains to be designed for very specific uses and still be able to leverage security and data built within the Polkadot framework.
Moreover, Polkadot is a blockchain network designed to support various interconnected, application-specific sub-chains called parachains (short for parallelized chains). Each chain built within Polkadot uses Parity Technologies' Substrate modular framework, which allows developers to select specific components that suit their application-specific chain best. Polkadot refers to the entire ecosystem of parachains that plug into a single base platform known as the Relay Chain. This base platform, which also leverages Substrate, does not support application functionality but instead provides security to the network's parachains and contains Polkadot's consensus, finality, and voting logic3.
Staking
In Proof-of-Stake (PoS) consensus mechanisms, nodes deposit tokens that are then used to validate transactions on the network. The nodes that are chosen are done so at random and are compensated in tokens in return. Staking is an alternative to crypto-mining on a Proof-of-Work network, where rather than expending computational energy, they give up the opportunity cost of capital. Staking requires a level of technical expertise4.
Some PoS networks allow the holders of the Staked coins to participate in major governance decisions of the network through a voting process. Generally speaking, the more coins that are Staked, the more power this individual has on the network4.
Decentralized Finance (DeFi)
Decentralized finance (DeFi) is a new class of financial applications that provides users with automated and transparent alternatives to traditional financial services without the need of financial institutions. The most popular DeFi applications include decentralized lending, borrowing, asset exchanges, and the decentralized creation of derivative assets. Once Ethereum migrates to PoS in connection with Ethereum 2.0, Tokens believes the vast majority of DeFi applications will be built on top of PoS blockchains. As the DeFi sector grows, the blockchains that power DeFi are also expected to scale, as are the rewards paid by those blockchains to secure their networks4.
Non-Fungible Tokens (NFTs)
Non-fungible tokens (NFTs) are a class of individually unique tokens frequently issued using the Ethereum ERC-721 standard. While cryptocurrencies strive to be fungible in that each token is interchangeable with one another, NFT’s are one of a kind making them particularly useful for the gaming industries. The standardization allows any in-game items or identity to be used across various applications, even if they were built by different companies. While gaming is one use case, there are others such as rare art that can benefit from provable digital scarcity for unique items4.
Sources:
1 https://defipulse.com/
2https://nonfungible.com/
3https://messari.io/asset/ethereum
4messari.com
About
Further information can be found on the Company’s website:
For further information, please contact:
------------------------------------------------------------------- |Tokens.com Corp. | |Katherine Sullivan , Head of Corporate Strategy&Investor Relations| |Email: contact@tokens.com | |Phone:(647) 578-7490 | |Media Contact: Megan Stangl– Talk Shop Media | |Email: Megan@talkshopmedia.com | -------------------------------------------------------------------
Neither NEO Exchange nor its Regulation Services Provider (as that term is defined in policies of the NEO Exchange) accepts responsibility for the adequacy or accuracy of this news release.
FORWARD-LOOKING STATEMENT DISCLAIMER
Certain statements in this news release have been derived from third party sources and have not been independently verifiedby the Company. In addition, this news release contains forward-looking statements and forward-looking information(together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as "plans", "expects', "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". Forward-looking statements in this news release include statements regarding: the Company's expected use of its bitcoin; expected annual returns and yields; the potential size of the crypto asset market; the impact of digital assets on the economy; expected adoption of blockchain technology and market opportunities related to same; and the Company's beliefs regarding the use of Staking technology by new digital asset platforms. Forward lookingstatements involve risks, uncertainties and other factors, that could cause actual results, performance, prospects and opportunities to differ materiallyfrom those expressed or implied by such forward-looking statements, including that: the Company's yields from Staking may not continue at the levels expected; competition or other factors may diminish expected returns; market adoption of blockchain may be slower than expected; the Company may need to deploy its Bitcoin in ways other than currently anticipated; the Company may be unable to raise financing needed to continue its business on terms expected or at all; the Company's business is subject to cybersecurity risks; and regulatory changes may impact the Company's ability to conduct its business as currently conducted, as well as other factors beyond the Company's control, and those risk factors included under the heading "Risk Factors" in the Company's filing statement dated
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