ZenSports Announces Dividend Payout on Its Cryptocurrency Security Token SPORT
ZenSports the 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.
A few months after ZenSports launched the beta of its peer-to-peer sports betting app to select customers in September 2018, it 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.
According to ZenSports Co-Founder & CEO, Mark Thomas, “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 its 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.