What It Means For Kraken to Start Selling Stock to Investors via Bnk To The Future Investments
Kraken, one of the world’s biggest cryptocurrency exchange firms, has concluded plans to begin selling stock to investors through the “Bnk to the Future” platform, a service that allows any qualified and accredited investor, buy shares and stock in cryptocurrency companies and projects.
How Will It Work?
Investors are first to be registered on Bnk to the Future after which they will have to make a minimum payment deposit of $1,000. After making this payment, Bnk to the Future allows until the 20th of June for interested people to invest into Kraken.
It has however been noted that even though Kraken is interested in pretty much any individuals who can drop at least $1,000, Bnk to the Future doesn’t make it so straightforward. Apart from the initial $1,000, a net worth of at least $1 million and income of at least $200,000 is required of prospective investors.
Sometime in December last year, Kraken was seeking investors as it was trying to raise $4 billion. This year, the San-Francisco based exchange firm has raised at least $100 million.
Special Purpose Vehicle
Investing through Bnk to the Future would be done by buying shares in a “Special Purpose Vehicle.” On one hand, this method easily protects investors in the event that the company goes bankrupt and has to liquidate.
The con here is that it is easy for the managers to hide very important data from investors leaving them in the dark in the event that a dire situation rears its head.
This has happened before when Enron – the now defunct American energy, commodities and services company – did the same thing using a Special Purpose Vehicle, ending up in a really terrible situation.
Bnk to the Future So Far
So far, this platform uses tokens which use the Ethereum network where prices of shares are tracked regularly. Using Ethereum also ensures that funds belonging to investors cannot be tampered with.
The platform’s website records an interesting $769 million in investment so far and also shows that investors have already begun receiving considerable dividends.