With cryptocurrency mining becoming an ever-popular venture within the space, we take a look at one such mining company who will use security tokens as a means to provide a share of the company for token holders. By literally allowing people to own a piece of the company that owns and operates everything, Minedblock is enabling a new level of access to cryptocurrency mining. To be abundantly clear, this is not a service that rents out mining rigs long term or another service selling “mining contracts” popular with amateur home miners, this token offering comes with a whole lot more than just a token!
With token holders legally entitled to a portion of ownership in the company itself, Minedblock becomes the first to use the security token model to fund a cryptocurrency mining operation and the first to file with the SEC, this can be proved here.
So how would it work exactly? Token holders are sent their cut of the profits at the beginning of each month, paid in ETH for now, but the company says they’ll have several payout options in the future. The token itself, the MinedBlock ‘MBTX’ is an ST-20 token built on PolyMath platform, which is in turn built on the Ethereum blockchain.
Also interesting to see, but actually makes a lot of sense – the fundraising caps are totally open-ended, with no limits. That wouldn’t sit well in the whitepaper of a typical ICO, but in this case, the amount they raise simply determines how many mining rigs will be running at the start. The percentage someone earns isn’t based on the number of tokens, but the percentage of the total token supply someone is holding instead.
Security tokens cannot thrive on hype alone, for obvious reasons, and the token holders know exactly how well the company is doing at all times due to monthly updates as well as the amount of their payouts.
So the Minedblock team is going to be feeling the pressure, and mining isn’t a risk-free business – the reality is far from ‘free money’ like some try to describe it. Thankfully, the Minedblock team seems to have been taking notes on what has and hasn’t worked for others.
The largest expense of course – electricity. To lower that cost they’ve chosen Iceland as the first location, which has been consistently been drawing in miners with their low-cost electricity. They’re also not just mining Bitcoin, they’ll go wherever the highest profits are.
You can participate right away because the token sale has just begun! They’ve already earned some impressive evaluation scores from ICOBench with a 4.3(out of 5.0), as well as 9 (out of 10) on ICOMarks. Head over to their site to learn more https://www.minedblock.io/
Useful Links:
| Official Site | https://www.minedblock.io |
| https://www.facebook.com/MinedBlock/ | |
| https://twitter.com/mined_block | |
| https://www.reddit.com/r/MinedBlock | |
| Telegram | https://t.me/minedblockofficial |
| Contact Email | contact@minedblock.it |