Stadler Völkel Attorneys at Law have advised the Austrian company HydroMiner GmbH in connection with an Initial Token Offering (ITO) which is completely governed by Austrian laws.
Oliver Völkel, partner at Stadler Völkel, has structured the transaction: "HydroMiner's Initial Token Offering is a good example of the so-called coupon or pre-sale model. In this form of Initial Token Offering, tokens are sold or exchanged for other coins. Later in the future, these tokens can be exchanged for a product or service of the company. The result again shows that Austria is the first choice when it comes to financing projects, products or companies through Initial Token Offerings in the EU," says Völkel.
"We have set ourselves the goal of being a pioneer in the field of legal advice on FinTech, cryptocurrency and blockchain applications. We are Austria's so far first and, as far as we know, only law firm that can be 'paid' also in Bitcoin. We are delighted to be trusted in the community as a specialized and competent partner for legal advice. Our company Stadler Völkel Attorneys at Law has repeatedly advises on ITOs are fully governed by Austrian law," said Arthur Stadler, partner at Stadler Völkel.
What is an Initial Token Offering (voucher / presale model)?
An Initial Token Offering is a new means of raising funds using the blockchain technology. In an ITO, a company offers a token for sale or exchange against other cryptocurrencies. Unlike traditional forms of raising capital, the people participating in the sale or exchange do not have a right to a dividend or repayment of their investment. In the case of the voucher or presale model, the participants provide the company with funds, so that the company can use them as means to develop and offer a desired product or service. The participants then have the right to exchange the token as vouchers for such product or service. In addition to this model, there are a number of other models. You can read more about this here (German only).
Details of HydroMiner's ITO
The token developed by HydroMiner is called "H2O". H2Os are tokens which can later be exchanged with the company against mining services. According to the plans of HydroMiner, their new mining facilities will be run by green electricity powered by small hydroelectric power plants which are no longer subsidized by the state. This would contribute to sustainable mining which requires the use of large amounts of electricity. From an economic perspective, employing these hydro power plants for mining could make this industry economically viable also in Austria as the electricity procured could be purchased at a market price of approx. 3 to 5 Eurocent per kilowatt hour.
In the Initial Token Offering, a fixed amount of 100 million H2O tokens are available. HydroMiner intends to exchange 25 %, i.e. 25 million H2O tokens under www.hydrominer.org/token-sale/ against Ether during a limited offer period beginning on 18 October 2017. One Ether will be exchanged for 100 H2O tokens.
Stadler Völkel Attorneys at Law
Stadler Völkel Attorneys at Law (www.svlaw.at/en) are specialized on cryptocurrency law in Austria. The law firm advises on a regular basis major Austrian corporations and banks on cryptocurrency related legal questions. The company aims at playing a pioneering role in the establishment of this new technology and is committed to increasing the acceptance of cryptocurrencies and their underlying blockchain technology. To reach its goal, the law firm organizes events on these topics on regular basis (videos on YouTube) and has contributed to the development of the Blockchain Roadmap of the Federal Ministry of Science, Research and the Economy (Link). In addition, the firm is active in teaching at the University of Vienna.