As you may know, after our successful pre-sale, we have delayed the ICO to fine tune our token model to work with Austrian regulations and consider all legal and tax implications. Today, we are happy to announce that we are going ahead with our token sale on October 18th!
Background - securities and their headache
Recently, many ICOs have come under scrutiny for being a securities offering. Offering securities publicly is heavily regulated in many countries. Many countries, for example the US, Singapore, but even “ICO-friendly” countries like Switzerland, have taken the position that ICO offering securities fall under these regulations - this would make offering and investing in them illegal in many cases.
So what are securities? Basically, they are promises of shared profit in exchange for an investment. You can see that a token promising a “dividend” would fall under that.
Crypto exchanges have started to pay attention to this as well and will not list tokens that could potentially be classified as securities.
We are happy to have recently found a capable legal partner in Dr. Oliver Völkel, LL.M. from the law firm Stadler Völkel, who is now working to get our ICO on solid legal footing. ICOs are widely unchartered territory and it is difficult to navigate the landscape of regulations and legal and tax frameworks. It’s important for us and our community to have the token sale stand on solid legal ground.
Based on this, we have made some important changes to the token model to make sure it is not a securities offering.
H2O is a voucher for mining time
Tokens acquired in the Token Sale can be exchanged for mining time starting from February 2018.
In order to exchange H2O tokens for mining time, H2O token holders have to register on our platform. H2O tokens can then be credited towards mining time. Each H2O token can be exchanged for a specific period of time (and a specific energy consumption) in which you will be able to use our mining farm. You may choose to use the mining farm for any coins that we offer on our platform.
- H2O token holders can now choose which currency to mine! Initially, we will offer BTC, ETH, ZEC, and a basket of altcoins.
- H2O token holders can also chose to exchange their H2O to mining time at a later time, not necessarily in February 2018 - this may actually be more profitable as hardware gets more energy efficient over time!
- Payouts will be made via the HydroMiner platform to the web wallet, from which they can be withdrawn to your wallet.
All contributors need to whitelist the Ethereum address that they will use in the ICO. The whitelisting form will be available ASAP on our website. The required information is email address and Ethereum wallet address. All non-whitelisted contributions will fail. Whitelisting had to be implemented to comply with European consumer protection laws.
We removed the token buy back program, as this may be deemed a sort of profit sharing. Also, we cancelled the allocation of tokens to the team.
What does not change
The Tokens Sale will still have 25 million tokens and the same discount levels.
Most importantly, HydroMiner is still the same eco-friendly mining project… but better!