If you’re a long time crypto investor/enthusiast, you will have more than likely heard of the Kraken cryptocurrency exchange. Founded in 2011, the exchange is very popular and provides cryptocurrency to fiat trading and now, Kraken is planning to be selling tokenised stock through ‘Bnk to the Future’, a regulated-compliant investment platform that allows less accredited investors purchase shares in cryptocurrency companies.
Investors who have registered on Bnk to the Future’s platform will have to make a deposit of $1k minimum. They will then have until 20th June to invest in the San Francisco-based exchange, which calls itself the second biggest, outside China.
Kraken’s fundraise nominally targets anyone who is able to pay a minimum of $1k, but for Bnk’s rules for accredited investors are a lot more restrictive. One Reddit user attempted the registration process and noted that putative investors must have a net worth of more than $1m and an income higher than $200k.
So it’s safe to say this is a niche audience Kraken are looking out for.
Last December, Kraken made an attempt to raise money at a $4 billion valuation but earlier this year, the exchange allegedly raised $100 million.
Bnk to the Future will enable investors to buy shared in a Special Purpose Vehicle in which a subsidiary firm is set up to create a sort of “arm’s length entity that offers a number of pros—and cons—to investors.”
As reported by Decrypt:
“On the up side, it protects investors should the holding company go bankrupt. On the down side, SPVs allow financial controllers to ‘mask crucial information from investors who may not be aware of a company’s complete financial situation,’ according to Investopedia, which noted that the notorious energy company Enron misused an SPV to catastrophic effect.”
Speaking on the platform, Bloomberg has said that the Bnk facilitates the purchase of tokens that track share prices and commit investors’ funds to the Ethereum network where they can’t be touched.