The F42 Initial Token Placement
FinTelegram has the mission to inform and protect investors in the cyberfinance era. Thus it acts in the public interest by fighting cybercrime and financial fraud in a joint effort with our ever-growing whistleblower community. Whistleblowers provide the necessary information for this and are therefore the critical success factor. Therefore, it is only fair to give whistleblowers a stake in FinTelegram’s success and give them a say. The F42 Fund and its token are the means to reward and motivate our whistleblowers.
The F42 tokens, generated via a smart contract on the Binance Smart Chain, represent the shares of FinTelegram Investor Protection Ltd. As proxies for the company’s shares, the F42 tokens embody their rights, such as receiving dividends and the right to vote in shareholder meetings. The central idea of going public with the F42 tokens is to give whistleblowers, sponsors, and partners a stake in FinTelegram and let them participate in the development of a decentralized whistleblower platform.
The UK-registered FinTelegram Investors Protection Ltd (“Company”) has a share capital of 5 million fully paid shares (Companies House). The Company will issue 50 million F42 tokens backed by its 5 million shares and the value these shares represtent. The intinsic value of an F42 token is calculated by dividing the Enterprise Value (EV) by 50,000,000.
Ten F42 tokens have been created per share. This means that the voting rights over the company are distributed over 50 million tokens. Likewise, dividends are paid evenly across all 50 tokens.
Tokens are distributed to partners and whistleblowers via two approaches:
- 70% in Initial Token Placement to founders, partners, sponsors, and existing histleblowers.
- 30% in ongoing Token Placements as “Tokens 4 Reward” for new whistleblower information
Should the company’s share capital be increased in the future, new F42 tokens may or may not be created as well.
The Initial Token Placement
The initial placement of the F42 tokens will be conducted in the period between 1 July to 21 July 2021. In this period, partners and whistlblowers will receive F42 tokens based on their past contributions.
Whistleblowers who have submitted reports in previous years can apply for F42 tokens via the “Request 4 Token” form.
The Ongoing Token Placement
As of July 21, 2021, whistleblowers can earn F42 tokens for submitted reports, whereby FinTelegram reserves the right to determine whether and how many F42 tokens a whistleblower will receive for a report.
Whistleblower Reward Program
In total, 15,000,000 F42 tokens representing 30% of total volume of issued tokens will be alloted to the Whistelblower Reward Program.