Binary.com, the pioneer in online binary options trading, announced it will be performing an Initial Coin Offering (ICO) that gives potential investors an opportunity to invest in the company’s future. Binary.com is offering up to 10 million digital tokens through its ICO –– all of which will be available through an open auction on its website.
By purchasing the tokens, investors are granted exclusive token holder rights. These rights entitle them to receive payments equivalent to shareholder dividends, as well as convert tokens into ordinary shares.
Binary.com is owned (81%) by founder and CEO Jean-Yves Sireau, a French national who now resides in Hong Kong. The company is one of the oldest Binary Options brokers, originally operating the xodds.com and betonmarkets.com websites as far back as 2000. The company’s various brands have since been consolidated under the binary.com label.
“The next step for a company of our size is naturally to go public by means of an Initial Public Offering (IPO). However, an IPO in itself is a cumbersome process that’s remained relatively unchanged for decades. Some would say it’s ripe for disruption,” says Binary.com Founder & CEO, Jean-Yves Sireau.
“By opting for the ICO route –– a kind of ‘IPO on the blockchain’ –– we can go beyond the limitations of a traditional IPO. We get a wider reach of potential investors, lower costs of trading and an immutable audit trail of transactions on the blockchain. Through the ICO, we can also establish our trading services among the cryptocurrency community, which is a prime target demographic for our platform,” adds Sireau.
Binary.com’s ICO, or token sale, will be conducted through an electronic Dutch auction process on its website where the price of each token is determined through a bidding process. The ICO is expected to launch in Q4.
Those $458.6 million in bets placed cost Binary.com $445.7 million in payouts to clients during the first six months of 2017. Meaning, that after some other Revenues from its newly launched MT5 product trading, Binary.com had “real” Revenues of $13.1 million in 1H-2017 (what they call Gross Profit in the income statement below).
After deducting selling and admin expenses (Binary.com has 109 employees, of which 13 are directors), and several other accounting adjustments, Binary.com made $10.3 million in profit in the first six months of 2017. A pretty good result, given that they earned $13.9 million in all of 2016. And, given that some of the company’s Binary Options competitors are having a tough time of it lately, as regulators around the world are cracking down on the sector.
The company’s full ICO document can be downloaded from the binary.com website :