5 mins

The Investor Journey: How the Pro-rata discount works for the Bitbond STO

Mollie Thick
March 11, 2019

At 12 noon CET Bitbond STO opened up to EUR, XLM, BTC and ETH investments for the first regulated STO in Germany.

This article will give a brief overview of the investment process and what you can expect to happen next if you subscribed to the BB1 token today.When we announced the Bitbond STO and the discounts that would be offered on BB1 we explained that 30% discount would be available up till 1st April 2019. As well as setting a €1M maximum for investments at this tier.

So far today, March 11th, we have seen that the Bitbond STO is extremely popular, and we may reach the €1M maximum in the first 12 hours. We were prepared for this, and our community managers in our Telegram have been explaining how this would work in the past few days.Now we want to lay it out in this blog article so that even those who were not following every Telegram conversation can clearly see how the allocation will work out.

Pro-rata Discount

The way that we decided to make things as fair as possible is to offer a pro-rata discount to everybody that subscribes in the first 12 hours, and then after that every 24 hours on a daily basis.

The very first window is between 12:00 CET on March 11th 2019, and 23:59 CET the same day

  1. If we have less than €1M investments, then you will get the 30% discount of the first tier.
  2. if we are oversubscribed, and you initiated your payment on day one, i.e. before March, 11th 23:59:59 CET. Then you will be part of the first discount allocation, pro rata.

As an example: let's say you want to invest €1,000 and we have subscriptions of €1.2M total by midnight on the 11th.

Then each investor will get the 30% discount on 83% of their investment amount (because the first tier goes up to €1M, which is 83% of the €1.2M invested), so for you it would be:

  • a 30% discount on €830 of your investment.

and on the remaining €170

  • you would benefit from a 10% discount.

In total you would get 1,364 BB1 for your €1000 investment. With an average price of €0.73 per BB1.

What about the Whales?

We did not let any of our big ticket private investors jump the queue or get additional discounts simply because they planned to invest more than the average retail investor. Everybody is in the same boat, and we are happy with our decision to offer a level playing field that isn’t based on the method of sending money or the currency you chose to subscribe with.

ICOs in the past would not disclose their pre-sales, and it was unclear who got a discount and who did not. We have been very careful to offer a process that would not allow anybody to join early, or anybody to be punished because one chain, or one method of payment, is faster than another.

What if I was really early?

We’re very pleased to see how keen some investors were, and how many of you were ready to send crypto or subscribe with EUR in the first few minutes after noon today. If you completed your transaction correctly this means you are guaranteed to be in the first tier of discount, and your exact number of BB1 will be communicated by email and in your dashboard as soon as we have checked all the incoming funds in the next five days.

At the time of writing this article, the €1M maximum has not been reached, so it is possible that you will receive the full 30% discount on your investment.

When will I find out how many BB1 I will be issued?

Bitbond STO will allocate your BB1 after five days has passed, as this will mean we will be certain that every transaction that was sent correctly has arrived with us. You will be notified within the next three days of your exact amount - this will be eight full days from when you receive the Deposit Confirmed email. This is really the maximum time we will take with this, if we are able to calculate things more quickly we will of course communicate this to investors.

What if we don’t reach the €1M subscription in the first 12 hours?

Then everybody who subscribed between noon and midnight CET on March 11th will get a 30% discount on their investment into BB1.

After the first window ends tonight at 11:59 CET March 11th, we will group subscriptions in 24 hour windows.

So everybody who subscribes between 00:00 CET on March 12th and 23:59 CET March 12th will qualify for the next round of pro-rata discounts. In this example where the €1M is not reached in the first 12 hour window, the next days subscribers would receive some discount from the 30% tier and then the next level of discount, 10%, if this March 12th group takes the value of total investments above €1M.

We will continue like this throughout the entire subscription period, or until we have confirmed that €3M total has been raised and that the discount has been exhausted.

We will also announce as soon as possible if we can clearly tell from received funds that a discount tier has been filled.

Once again - thank you for everyone who has participated so far.

Get an instant loan for your business

Bitbond is a leading platform for small business loans. Founded in 2013, we have funded over 3,000 loans to entrepreneurs all over the world.
What sets us apart:
  • Easy online application
  • Instant loans available
  • Transparent pricing
CHECK YOUR RATES
Fill out the form to qualify for a consultation
GO TO FORM
Related Articles
*Bitbond Finance GmbH is a Bitbond GmbH subsidiary. Bitbond GmbH owns 100% of Bitbond Finance GmbH. This content represents solely a nonbinding preliminary information which serves exclusively advertising purposes. The content is neither an offer nor a solicitation of an offer to purchase token or securities issued by Bitbond Finance GmbH. The information in these pages does not constitute investment advice or investment recommendation. The greatest possible care has been taken in the preparation of this content, but errors and omissions remain reserved.

Please find the binding Bitbond STO prospectus here.

A non-binding English translation of the Bitbond STO prospectus could be found here.