HydroMiner’s H3O launching as EU compliant security token

HydroMiner, a cryptocurrency mining project launched last year with its H20 token is now underway in launching its new H30 token, to which the original H20 tokens will be transferable towards. Unlike the H20 token, H30 is designed as a security token for its investors for several reasons. HydroMiner’s H3O token introduces a model where mining profits from the operation go to the company, funds will be distributed for reinvestment and growth, in a tax friendly environment.

The H3O token will be one of the first tokens relying on a full capital market prospectus in accordance with European financial law, making it one of the most transparent, safe and open tokens. H3O will be Europe’s first security token, and at a later stage will be convertible into an equity token compliant under EU regulations.

The HydroMining team said:

“With cheap energy and an effective cooling solution, the team has an average profitability ranging from 20%-30%, based on past figures. HydroMiner’s aim is to offer investors the best possible way to participate in the mining process, in terms of technical expertise, lean management, tax and legal status. We believe that cryptocurrencies should be as open and inclusive as possible. This is all in line with our attempt at creating a token which is a hybrid of traditional securities and cryptocurrencies in that it offers the rights, security, and protections of traditional securities as well as the flexibility of crypto-tokens.”

Features of H3O

If the company succeeds, the token will grow in value and investors will benefit as the HydroMiner team expects the mining business will remain profitable into the future. It’s the next best thing to a traditional share allowing investors to tag-along. In case the HydroMiner team sells off their company-shares, up to 80% of the profits are distributed to H3O token holders

Who can participate in the H3O Pre-Sale?

The tokenized H3O securities will combine the legal characteristics of participation rights with the advantages of the blockchain. Tokenized securities — unlike utility tokens — don’t give the investor access to a future product or service of a company. The investors are participating in the performance of the company itself. Thus, the H3O token will be subject to the Austrian Capital Markets Act which results in compliance with European capital market regulations. Thus, HydroMiner will release a full prospectus during the ICO, following approval by the Austrian Financial Market Authority (FMA).

H2O Token Swap

The H2O token swap will be available with the start of the pre-sale, to an exchange rate of 1 H2O to 50 H3O. If holders would like to convert their H2O, they are advised to hold it in their wallet until the main sale starts, which is scheduled for Q3 of this year, after the capital market prospectus is approved.

H3O Main Sale

After the presale, as soon as the capital market prospectus is approved by the Austrian authorities, the H3O main sale will begin, approx. in Q3 2018. The prospectus is currently under review. Due to regulatory requirements, the exact details and timing of the upcoming main ICO are subject to the prior approval of a capital market prospectus by the Austrian Financial Market Authority (FMA).

To summarize, H3O token holders will have a position similar to shareholders. Especially, H3O holders will participate in HydroMiner’s future performance. H3O will be traded on security exchange platforms in a compliant high-liquidity environment.

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