Partnering Together
Republic Crypto has recently announced that they are facilitating air dropping of security tokens, on behalf of Althea – an industry first.
This event will see users of the Althea network rewarded with equity in the company, ideally incentivizing growth of the platform. These particular tokens imbue multiple benefits upon their holders. These include, not only voting rights, but dividends garnered from network transaction fees.
For those interested in taking part in this event, click HERE.
Air Dropping
When discussing digital assets, an ‘air drop’ or ‘air dropping’ refers to the free distribution of a company’s token. This is usually done as a marketing campaign to raise awareness of the project and their services.
Recipients of air drops are typically chosen through pre-set parameters or tasks that must be completed. These may include holding affiliated tokens/coins, or spreading project awareness through content creation, etc.
Until now, this act was restricted solely to utility tokens. This is due to complex regulations enforced upon security tokens, making it difficult to complete an air drop. Republic Crypto has however created a framework, allowing for the this act to be done utilizing security tokens.
Why?
Now that the kinks have been ironed out, why would Republic and Althea decide to air drop security tokens?
This choice is possibly due to the plethora of past utility token air drops that amounted to wasted tokens and coins. Investors and traders are more intrigued by equity within a company than a utility token that may, or may not, have any true functionality.
With this being said, recipients should not expect huge amounts of equity. While the process is intriguing, companies would be doing themselves a disservice by doling out big chunks of equity. As stated before, air drops are done as a promotional exercise. Hopefully, those that receive their air drop will take the time to learn more about the issuing company, and find themselves inclined to seek out more equity.
Commentary
Upon announcing their security token air drop, representatives from each, Althea and Republic, took the time to comment. The following is what each had to say on the matter.
Deborah Simpier, Cofounder & COO of Althea, stated,
“It’s important that those who are starting and operating on-ground networks will have a stake in the Althea governance token…This partnership with Republic also enables us to distribute tokens to a broad audience of U.S. and foreign citizens, accredited and unaccredited investors alike, while maintaining compliance with the law.”
Jed Halfon, Partner at Republic, stated,
“Building a tool that allows companies to share their equity or tokens with users and engaged customers stems from our strong belief that early users are often the most passionate and vocal champions of a company, yet yield nothing from said company’s financial success…Republic’s mission is to equalize opportunities for everyone involved, giving people their fair share of the value they created for a startup.”
Republic Crypto
This New York based company acts as an investment firm, which has assisted over 79 companies raise in excess of $13 million to date. The company, and their efforts, have drawn the interest of various high profile backers including Binance, AngelList, and more.
The team has developed regulatory compliant services allowing for the distribution of security tokens through air drops.
Althea
Althea is a young company which has set out to revolutionize the way internet users pay and access their bandwidth. The team has developed a platform which facilitates decentralized ISPs, allowing for cheaper and faster internet.
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