For Fans & Investors
Investing in Tokenized Assets in Sports like never before
FOR FANS & INVESTORS
Over the past century, financial markets have been shaped with unequal access to investment opportunities by its participants. The current industry set up in many jurisdictions is perceived by retail investors as discriminatory. By default, Venture Capitalists, Institutional investors, accredited investors and High Net Worth (HNW) individuals have either exclusivity to certain asset classes or priority access to lucrative opportunities, such as Initial Public Offerings (IPOs) or promising new ventures at their early stage of development.
The sports industry is not an exception. With only 22 football clubs in the world traded publicly on the exchanges, average fans and investors are excluded from participation in this closed industry. Sports D³ mission is to empower fans & investors around the world by giving them access to investment opportunities that were not possible before DLT technology. Specifically,
- New Asset Class: investors can diversify their portfolio with regulatory compliant digital assets in the sports industry.
- Profit Participation: Fans get a REAL share by participating directly in the economic benefits of their team’s or athlete’s performance expressed in financial terms.
- Fan engagement: Fans reach a new level and participation once they become investors.
How Security Tokens are different from "sports fan coins"?
Security Token Offerings vs. the ICOs
In 2017-2018 experienced an explosive growth of ICOs. Due to the lack of regulatory oversight from government institutions, such as FCA, ESMA or SEC, a massive proliferation of “utility tokens” and “sports fan coins” took place among the general public. While some of these tokens may serve the marketing purpose to improve loyalty and engagement of sports fans, none of them represent a true financial instrument or investment vehicle as defined by the securities law.
Unfortunately, with a lack of oversight and driven by hype these “utility token” projects have received inflated valuations, that were not justified by their underlying business models, … and many of them turned out to be a pure fraud or exit scam. In fact, the study conducted by two researchers from Boston College, Hugo Benedetti and Leonard Kostovetsky, revealed that 81% of ICOs were scams.
In contrast, by definition, all STOs are subject to the existing securitization legal frameworks to ensure full legal protection of the investors as mandated by the regulator in the applicable jurisdiction, including 28 countries in the European Union, United Kingdom, the United States, Canada, South America, and Asia.
of ICOs in 2018
Investor rights protection and regulatory compliance
On a mission to fix the damage of ICO-mania
Sports D³ is determined to fix the broken crowdfunding model!
By focusing only on regulatory compliant financial instruments and applying traditional business logic & valuation techniques, we are excited to offer to millions of sports fans and investors around the world direct participation in investment opportunities in the sports industry via Security Token Offerings (STOs): e.g. invest in a tokenized share of a football team, digitized sponsorship or broadcasting contract, participate in crowdfunding of a football player or construction of a new stadium construction, etc.
To ensure regulatory compliance and full legal protection of the investors, wes developed SS-20 Token Standard and compliance protocol. It is leveraging smart contracts for the automation of compliance procedures on the STO platform. The database with business rules ensures adherence to the applicable security regulations while keeping transactions seamless during all stages of Security Token lifecycle starting with the issuance on the day of the initial token offering and continued with transactions on the secondary market.
Sports D³ STO platform is a marketplace where sports fans and investors are able to participate in investment opportunities in the sports industry ranging from objects of infrastructure to acquiring shares in their favorite team or a player.
The platform’s easy to use interface enables, retail or institutional investors to explore the available investment opportunities and review legal and business documentation of the offering. An investor is able to participate in the Private or Public Security Token Offerings from the Main Dashboard on the platform, based on their investor accreditation status, investment maximums, geographic restrictions or other preferences or as required by law.
Transactions records of the purchased security tokens are placed on the public ledger protocol for full transparency and protection of the investor’s ownership rights without violating the privacy of their information. Platform integration with a public blockchain via MetaMask wallet or similar provides Investors with freedom, mobility and 24/7/365 liquidity for their digital assets.
All users registered on the platform, including token issuers, investors and third-party service providers are required to complete the identity verification process, KYC/AML procedure, etc. This way Sports D³ is able to provide all market participants with a safe and regulatory compliant investment environment while reducing transaction or counterparty risks.
Ready for the next step?
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