Zensports, a decentralized peer-to-peer sports betting mobile app has announced a set of quarterly dividend payouts that it will be making to all of its SPORT security token holders.
Headquartered in San Francisco, ZenSports is a marketplace where anyone can create and accept sports bets with anyone else in the world, without the need for a centralized bookmaker. It is available to download in both the App Store and Play Store. 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 and to non-U.S. investors through the Regulation S exemption.
SPORTS Utility Token v/s SPORTS Security Token
SPORT security token is completely different from SPORTS utility token. It 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 (security token).
SPORTS utility token, 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. 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.
Dividend Payout Structure
- Approximately 5B SPORT security tokens exist in circulation. ZenSports currently holds 3B of the SPORT security tokens in reserve and remaining 2B SPORT security tokens are held by token holders outside the company.
- Every other token holder other than the reserve token holders of the company will receive dividend payouts.
- For each $1 worth of the SPORTS utility tokens in betting volume, the Company will issue a dividend to each SPORT security token holder. Meaning the dividends are direclty related to the performance of the betting app.
- Dividends will be payable in SPORTS (exchange rate of $1 = 400 SPORTS, exchange rate offered to customers in-app), other cryptocurrencies, or some combination thereof.
- The first dividend will be issued by Oct. 9, 2019, for the quarter ending Sept. 30, 2019.
ZenSports Co-Founder & CEO, Mark Thomas said, “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.”