Stadler Völkel Attorneys At Law advise Qravity in connection with an Initial Coin Offering (ICO) under Austrian law.

Qravity

Qravity was founded in 2016 and today employs more than 30 people from 12 different countries. The startup based in Vienna is developing a blockchain-based and decentralized platform for the creation and distribution of digital content with integrated project management tools, file revision and approval, file sharing and messaging for community and team communication. Producers can use the platform as a project management tool, while team members can track their tasks and revenues in projects.

The platform is intended to be used for the development and marketing of various digital premium content, such as the production of films, computer games, e-books or audiobooks. The implementation of blockchain technology in the platform ensures that every contribution of a team member to a project is permanently recorded.

Qravity then brings the finished product to market as digital content and enables interested parties to purchase the products on the Qravity platform. Qravity also sells distributorship rights and uses third-party digital marketplaces such as app stores and streaming services.

Stadler Völkel on the ICO

Oliver Völkel, Partner at Stadler Völkel Attorneys at Law, has structured the issuing: "The Qravity ICO has been particularly challenging but the result shows clearly that Blockchain can be much more than mere value transfer. Qravity combines for the first time two tokens on the Ethereum Platform, the QCO and the QPT. In the ICO, only QCOs are issued, which are required to purchase the finished products from Qravity, whereas QPTs can only be acquired by project members who make valuable contributions to a project. Based on the sales of a product, Qravity pays compensation to the team members—and this is where the QPTs come in. The percentage that a team member receives from a sale is determined by their amount of QPTs. The more QPTs, the greater the share of sales proceeds. A new, transparent and fair marketing concept." says Oliver Völkel.

"We are very glad to once again advise on an ICO under Austrian law. And, we are even more pleased that the name Stadler Völkel Attorneys at Law stands for high reputation and trust in the FinTech community when it comes to tailor-made legal ICO consulting." says Arthur Stadler.

What is an Initial Coin Offering?

The terms Initial Coin Offering or Initial Token Offering encompass various forms of corporate financing. Common to all forms is that a coin or token is issued as a new cryptocurrency based on the blockchain technology. In an ICO, a company offers its coins or tokens for sale or exchange for other cryptocurrencies. Depending on how the coins or tokens are structured, this may involve the issuance of securities or investments, or the sale of digital assets. Depending on this, companies have to observe a different legal framework. Usually, people participating in an ICO have no right to a dividend, interest or repayment of their investment. Investors usually participate in an ICO because they expect a general increase in the price of the issued coins or tokens. An overview of different ICO models can be found here (derBrutkasten) or here (meinanwalt.at).

Details about the ICO of Qravity

As part of the Initial Coin Offerings, the Austrian Qravity QCO GmbH will issue up to 500 million QCO tokens. Part of the tokens will be issued in the pre-sale from 18 to 31 August 2018, another part in the subsequent token sale from 1 September to 7 October 2018. Details of the offer conditions can be found on the website of Qravity. The issued QCOs are ERC20 tokens based on the Ethereum Blockchain. QCOs may be used by their owners to acquire digital content offered by Qravity on their platform. These digital content may include movies, television series, video games, e-books, audiobooks or computer applications.

Stadler Völkel Attorneys at Law

Stadler Völkel Attorneys at Law (www.svlaw.at) specialize in the law of blockchain and virtual currencies. The firm has successfully supported several initial coin offerings in the past and regularly advises Austrian and international companies and banks on legal issues related to cryptocurrencies. The firm seeks to be a pioneer in establishing new technologies and is committed to increasing the acceptance of cryptocurrencies and their underlying blockchain technology. The law firm organizes regular events on these topics (videos on YouTube) and has contributed to the development of the Blockchain Roadmap of the Federal Ministry of Science, Research and Economy (Link). In addition, the law firm is teaching a course on cryptocurrencies and blockchain at the University of Vienna.

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