ZenSports Announces Dividend Payout On Its Cryptocurrency Security Token SPORT

08 / 14 / 2019 By ZenSports Team

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ZenSports is pleased to announce today a set of quarterly dividend payouts that we will be making to all SPORT security token holders.

A few months after we launched the beta of our peer-to-peer sports betting app to select customers in September 2018, we created a security token called SPORT. SPORT was pre-sold in Summer 2018 and sold post-creation in December 2018 to accredited investors in the United States through the Regulation D exemption (SPORT has a Form D on file with the SEC) and to non-U.S. investors through the Regulation S exemption. The security token was created as a novel, blockchain-based asset which provides investment returns to investors without the need to wait for a formal exit.

As a decentralized platform, cryptocurrencies are at the heart of our philosophy of how we believe the world will eventually manage all securities and streamline utility payment functions. We saw that there could be a better way for private companies to provide returns to investors other than simply having to wait for an IPO or M&A event in 7–10 years. Security tokens offer a streamlined way for doing that. Yes, we also have a traditional stock structure for investors and employees, but the notion of a security token as a means to provide investment returns is near and dear to us, and we believe it’s the future of securities. That’s why we’re super excited for today’s announcement.

In addition to our SPORT security token, ZenSports announced a few weeks ago the launch of a separate, utility token usable for in-app betting called SPORTS (with an “s”). The purpose of ZenSports’ new utility token is to streamline the entire betting process for customers within the ZenSports mobile app, and to create a rewards and loyalty program for ZenSports’ top tier customers. The latter is done via a new “SPORTS Rewards Program,” whereby customers who bet with SPORTS are able to pay discounted betting fees, earn cash back for reaching certain betting milestones, and earn bonuses for performing other actions within the ZenSports app.

Structure of Dividend Payout

The structure of the dividend payout to SPORT security token holders will be as follows:

–5,021,280,835.52 SPORT security tokens exist in circulation. An equivalent amount of SPORTS utility tokens exist in circulation as well.

–All SPORT security token holders, but not including ZenSports’ reserve supply of SPORT security tokens, will receive quarterly dividends under this particular payout.

–For every 1 SPORTS utility token that gets wagered within the ZenSports app, the Company will issue 1 SPORTS utility token as a quarterly dividend to each SPORT security token holder. This is so that the dividend is tied to company performance and the betting volume that takes place in SPORTS tokens.

–The first dividend will be issued by no later than October 9, 2019 for the quarter ending September 30, 2019. After that, each remaining dividend will be issued within 9 calendar days after the end of the previous calendar quarter.

–After all non-ZenSports held SPORT security tokens have received an equal 1:1 amount of SPORTS utility tokens, this particular quarterly dividend payout will end. The exact amount of non-ZenSports held SPORT security tokens can be found at anytime HERE.

–ZenSports reserves the right to adjust or suspend dividends based on company performance at anytime, and reserves the right to update this blog post with any changes, modifications, or clarifying details.

SPORTS Utility Token vs. SPORT Security Token

The SPORT security token is completely different from SPORTS utility token, and we once again want to stress that the two should not be confused with each other. The security token, SPORT, is a financial instrument for investors to invest into ZenSports and receive investment returns. The sale of SPORT security tokens was completed earlier in 2019 and is no longer open to investors. SPORT is not integrated into the ZenSports app in any way, shape or form. No deposits, bets, withdrawals, or rewards can take place in-app using SPORT.

SPORTS, on the other hand, is currently being offered as a true utility token on a fully functional application and active network. It is only used as a mechanism for betting and earning rewards through the ZenSports app and network. SPORTS has not, nor ever will be, sold to investors as an investment or with the potential to receive investment returns. To buy the SPORTS utility token, ZenSports users are required to wager at least 50% of purchased tokens before they could withdraw or transfer them. SPORTS is for betting, not for speculation.

This blog post was last updated on January 10, 2020.

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