- BABB sets itself apart by tying clear commitments and business outcomes to amount of money raised in its token sale.
- BABB’s token structure will have two phases, at least one year apart, with the product launch in between.
- Phase one pre-sale begins on 15 January 2018 with main sale commencing immediately after the end of the pre-sale, with a total hard cap of US$20 million.
- With the money raised in the phase one, BABB will deliver:
A smartphone app, enabling users to open a bank account and make domestic and international payments.
A European banking license.
A partnership with a leading retail or central bank.
- Phase two will begin after Q3, 2019 once all commitments are delivered.
Blockchain banking start up BABB, an FCA Authorised Payment Institution, is taking a new responsible approach to its token sale. BABB will raise the money they need to launch a working product and bring their BAX tokens into use in the market, and will tie clear commitments to the money raised.
“Blockchain startups have collectively raised more than US$5.3 billion throughout 2017, but a large proportion of companies have raised huge sums without a clear plan in place. We don’t think this current model is conducive to an agile development process or a lean business mindset which is why we’ve decided to launch our token sale in two phases,” said Rushd Averroes, Founder and CEO of BABB.
The first phase will begin with a pre-sale launch on 15 January, 2018 followed by a main sale commencing immediately after the end of the pre-sale, and in total the hard cap of phase one is US$20 million.
“We want to be open and transparent with our community and future customers of the BABB platform. The reality is we don’t need funds all in one go, and we definitely don’t need it all immediately,” said Averroes.
With the money raised in the first phase, BABB will deliver: a smartphone app with bank account capability and international money transfer functionality; a European banking license in the appropriate jurisdiction for their go-to market strategy; and a partnership with a leading retail or central bank in an emerging market, to open corridors for international transactions. By making these elements live, BABB will create a the market for its token, BAX, and stimulate the token economy.
“We believe in the product we’re building, and we want to make good on our promises before raising more money. Once we launch the platform and the token is in use in the market, we’ll supply that demand by releasing up to 10 billion more tokens. That’s why the second phase is contingent on these deliverables, and will take place no earlier than the third quarter of 2019,” said Averroes.
The money raised in the second phase will be used to fund BABB’s expansion into new markets and releasing advanced functionality, including peer-to-peer lending.
In conducting their token sale in a responsible manner, holding the team accountable both to token buyers and to future customers, BABB gears up for its mission to offer the benefits of blockchain-based banking in a regulated environment. Collectively, the BABB team has decades of experience in financial services. Paul Johnson, the newest member of the team, has held CIO and COO positions in Aldermore Bank, Lloyds Bank and GMAC FS and joins BABB to guide them through the process of obtaining a banking license.
BABB will issue 50 billion BAX tokens in total and will release 20 billion tokens in phase one, which are expected to be listed on exchanges following the close of the main sale.
BAX is the token that powers the BABB platform. Once the app is live, BAX will be used to pay for services, fees and licensing costs – so if an individual or business wants to use a BABB account, they will use BAX to pay for it. BAX tokens can also be used with onboarding and offboarding funds to third party exchanges, fundraisings and cross-currency conversion with improved liquidity.