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.
The existing asymmetry of opportunities, legacy regulations with excessive protection of “orphans & widows” category of retail investors traditionally have put smaller investors at a disadvantage. Today, however, major advances in DLT technology and updates to the regulatory frameworks have triggered a massive disruption to the current set up in the industry, to improve existing financial markets and to enable the creation of the new markets. Sports D³ mission is to empower sports fans & investors around the world by introducing the power of “D3“ (“D-cubed”) to the sports industry, which stands for “Investments in Sports: Digitized. Decentralized. Democratized.”
THE POWER OF
Sports D³ is collaborating with sports clubs, leagues and individual athletes to digitize & securitize fractional ownership rights on the public ledger to make them equally accessible to every category of investors ranging from retail to larger institutions. All the investors are given the opportunity to benefit from the cost-efficiencies of tokenized assets and smart contract automation.
The distributed nature of the DLT technology provides a decentralized record of ownership on the public ledger, which effectively eliminates the need for a central authority to guarantee safety or accuracy of such a record. It creates an entirely new level of financial mobility for the investors and gives them the freedom to participate in world economy by-passing multiple layers of costly financial intermediaries, – all without sacrificing investor protection rights and asset security.
Sports D³ is determined to democratize the access to investment opportunities by offering fully decentralized digital assets to a broad pool of global investors without discriminating by geography, jurisdiction, size of the investable amount or other unfair criteria, while strictly following the applicable regulations and respecting investor protection rights.
“[Token Offerings] are quickly replacing traditional VC funding models, effectively cutting out the middleman by allowing companies to raise their own funds directly.”
“Initial Coin Offerings: A strategic perspective.” June 2018.
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.
World Economic Forum:
[Digitization could] “…unlock the estimated $100 trillion of value … over the next decade.”
“Unlocking $100 Trillion for Business and Society from Digital Transformation” May 2018.
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.
Who can be an investor
and how to become one
Membership registration on Sports D³ STO platform is open to investors around the world without any restriction. Residents from any jurisdiction are welcome to use the platform to the extent that is allowed by law in the applicable jurisdiction(s).
Our enterprise-grade platform is equally suited for use by Retail Investors and Institutional Asset Managers, providing them with an opportunity to diversify holdings in their portfolios with digital assets, participate in new markets created for previously inaccessible assets classes, develop new revenue streams, benefit from greater liquidity for alternative assets, – all with reduced friction and at a lowest possible cost of transactions.
To become an investor on Sports D³ STO Platform all investors are required to complete the following six-step process:
- Account setup and registration on the platform
- ID & investor accreditation status verification, KYC / AML screening
- Funding of the account
- Review of STO’s business and legal documentation, subscription to the offering(s)
- Participation in the offering
- Receipt of purchased Security Tokens in investor’s MultiSig crypto-wallet
Ready for the next step?
Join the #SportsDemocracy Conversation
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