- Blockport won’t launch the highly anticipated Security Tokens Offering (STO)
- The retreat is due to the failure of reaching the threshold of 1 million euro, set as a soft cap
- STO participants will get a refund with one euro bonus without the issuance of BPS, Blockport Securities
On May 16, 2019, Blockport announced that they wouldn’t be able to launch the eagerly anticipated STO. Despite the market upswing, Blockport reported that this setback is due to the insufficient fundraise results that were meant to facilitate the issuance of BPS tokens.
Blockport launched their first equity-based fundraising phase via a Security Token Offering (STO) on April 15, 2019. According to their report, their team has been working round the clock for the past few months to establish the first phase of their STO. However, the plan came to an abrupt end yesterday after meager fundraise results.
What is the Connection Between STO and BPS?
Investors who participated in the STO purchased Blockport Securities (BPS) – fully compliant security tokens connected to the shares of the company. These tokens offer investors economic rights and the right to dividends.
Blockport stated that they didn’t manage to reach their soft cap threshold of 1 million euros. They affirmed that all investors who engaged in the STO would get their investment with 1 euro bonus without the issuance of BPS tokens.
The representatives stated they would reach out to all STO participants through email next week and give a clear guideline on the refund process.
Many internal and external aspects have significantly contributed to fundraising and ended up impacting the STO performance and the overall expectations. The team went further and pointed out that the market had taken its way, and they have no other option rather than to accept the outcome and deal with the aftermath. They promised to maintain their focus on the potential opportunities in the coming weeks.
The Future of Blockport
Blockport has decided to take a responsible though unfortunate measure. They have decided to scale down their operations and developments dreadfully. They said it’s neither responsible nor economically viable to run their platform and services without considerable investment.
Despite that, they have promised not to lose their passion in pursuing the goals and vision of Blockport even though the current situation will force them to pull down the online platform and take it offline by the end of this month.
The Blockport central team is set to divert its resources on improving the platform in private mode and will also collaborate with interested parties in rejuvenating blockchain. They also noted that the subject to the ongoing negotiations and business structure is still unknown.
