APP PORTFOLIO FAQ
How do App Portfolios work?
Each app portfolio will create and store a supply of digital tokens in a shared escrow. Each app contributes a portion of earnings into this digital escrow. App portfolios distribute value from this reserve as digital tokens on Bitshares based decentralized exchange (DEX). Proceeds from a portfolio’s digital reserve are valued as market pegged assets called Smartcoins.
Who decides which apps get funded?
Initially sponsors cherry pick apps for their portfolio from a waiting area. Beyond this an algorithm will control the distribution of funds. A leader-board will determine each app’s potential advance. Through a private dashboard each participant will see the monetary path of their portfolio, alongside each app’s analytics. With this data, users can make the best decisions when it comes to selecting apps for their portfolios.
How do you screen apps for quality?
Since Apple, Google, and most app stores perform quality assurance, we’ll let each portfolio take an internal poll to determine which apps will be included in their group. Apptrade’s mobile app professionals will work with portfolios to curate apps.
How long does a portfolio listing last?
Publishers may join a portfolio for a 2 year term. We anticipate that by the time your term expires you will have:
A. Received increased exposure via cross-marketing with a group of up to100 digital brands.
B. Raised capital for continued development and promotional endeavors.
Everything else is up to how well each app developer utilizes their resources within a portfolio.
What is the difference between Apptrade and other digital goods listing sites?
There are two distinct differences:
Apptrade’s hallmark is raising capital using blockchain tokens to fund app development. Holders of these tokens can trade them for other crypto currencies such as Bitcoin or Ether.
Apptrade's marketplace brings together content creators who work together to gain exposure.
Apptrade’s app sales fee will be the lowest in digital business listings. The savings earned through other revenue sources will keep us competitive.
Can I sponsor more than one portfolio?
There are no restrictions on how many portfolios you may sponsor. However, portfolios are unaffiliated with one another. Traffic is contained within their respective portfolio ecosystems. Apps must fulfill existing obligations to their respective portfolios.
How do you categorize apps?
Virtual Goods - Mobile, console, indie games, virtual reality assets, on demand apps, music, digital movies, ebooks, information product streams, websites.
Genres - Social, games, educational, experiential, open world, dating, racing, lifestyle, health, real time strategies.
Class - Scope of services or scope of labor required to maintain app.
App portfolios generate revenue from:
In app purchases.
Ad revenue from mobile ad networks.
Asset or source code sales.
Cross app promotions and advertisements.
What will app portfolios do with revenue raised from token sales?
A. App flipping: buy and sell app source codes to build inventory and value.
B. Fund existing apps. Giving app developers resources to continue their growth.
BITSHARES TOKENS FAQ
What is a blockchain?
A public digital ledger, updated and secured by a non central peer to peer network. For simplicity, a distributed immutable network owned by no single institution with no central point of failure. Much like the distributed nature of the internet, willing participants use their computational resources to verify transactions. Otherwise known as producing "blocks' of transactions. This change occurs as an update to the history of all transactions on the a master public ledger. This “internet of value” is designed to be available anywhere in the world from any computer.
What is the structure of an app portfolio’s reserve?
Each portfolio has a digital reserve which is backed by raw cash flow. Each portfolio is a decentralized autonomous entity; a shared digital escrow controlled by a smart contract, maintained by the community within a portfolio.
Each portfolio features a supply of tokens that are linked to digital royalty streams and a factoring agreement. Apptrade is not selling shares, memberships, or instruments of debt. Digital tokens are used to payout revenue collected as account receivables that will be secured by publisher accounts on the platform.
Apptrade portfolio reserves are programmed to automatically execute the terms of a contract. Rules of an agreement are programmatic business models or fee structures that are written in code and maintained by a secure and open network.
What makes this system secure? ( Updated August 2019)
A decentralized environment removes counter-party and custodial risk. Bitshares is a decentralized exchange that has KYC compliance permissions built into the framework of the platform. This saves costs on compliance and security as the paper trail and identity of any account can be verified on the Bitshares blockchain explorer. The terms of contracts, and their respective algorithms in action, can be checked as the Bitshares documentation is opensource.
Update August 2019
The EOS smartcontract platform is the early stages of release. Apptrade is sticking with Bitshares but may have to implement an interoperable solution to achieve many of the conditional transactions required to move value in and out of app portfolios. We are aware of many existing options that can carry out this function. Mainly AppTrade seek smartcontracts that can work with the market pegged asset system of Bitshares. There is a link between EOS and Bitshares in the BEOS project which is in an alpha state.
How long is the term for holding portfolio tokens?
Forever. Sponsors can redeem the value of their portfolio tokens one year after purchase. Apptrade portfolios will need this time to build value. Stable liquidity gives app publishers time to utilise funds for development and promotions. All portfolio tokens thereafter will be tradable at anytime. Portfolio reserves will pay token holders every month from their respective portfolio reserves.
Is this legal?
Bitshares Smart Assets are inherently compliant ready. The regulations for issuing digital assets are baked into the Bitshares protocol. Rules and terms of a contract can be seen by the public. This adds more layers of transparency that ensures that the token side of the platform is regulation ready. Check your local legislation in any event. The base Bitshares blockchain has been declared a utility by international regulators, though the act of creating and selling of derivative tokens without proper licenses may be deemed as a solicitation of unregistered securities in many jurisdictions.
1. The ability for creators to seize tokens.
2. Holders have recourse through the token’s fungibility.
3. Creators may restrict trading on their tokens.
4. A whitelist of accounts must be maintained by creators as is required by KYC and AML laws for token creation.
There are 2 layers of compliance present; one at the level of the code, then at the level of Apptrade's own KYC ID validation of app publishers upon their enrollment.
How do we screen sponsors?
Apptrade operates in a compliance friendly environment. We identify and vet all publisher participants in Apptrade’s app portfolio marketplace. In keeping with KYC and AML validations, Apptrade requires participants who wish to link their domestic bank accounts to be vetted in order to become a sponsor or app broker at higher levels of purchases.
How can token holders rely on price stability?
We can’t enforce how token holders store their wealth. However, we can inform users that account value can be stored in price controlled cryptocurrencies. The Bitshares platform has solved this issue of price stability through a feature called SmartCoins. One example is the BitUSD, which is pegged against the price of the dollar. BitUSD is less volatile than most crypto currencies and can be used to stabilize customer accounts, if customers choose.
What if publishers raise capital or sell apps outside of the Apptrade platform?
The revenue from selling tokens does not create dilution within corporate shareholdings as tokens are not instruments of debt. Creating a decentralized app is best classified as a company product that has costs to develop and maintain.
Is this equity crowdfunding?
No. This business model is a branch of open innovation. The public can influence some aspects of production and marketing. In Apptrade's use case it’s a consortium of publishers that self organize around one network agreement where no debt or equity is exchanged. Each portfolio’s buy back program is part of a revenue sharing model where sponsors earn revenue from the app portfolio's they support through portfolio tokens.
Is Apptrade a broker dealer?
Apptrade is not a broker dealer and is not licensed as a securities broker dealer or investment advisor and does not act as such. Though Apptrade will consult with securities professionals as advisors and managers, which are registered as securities professionals, Apptrade will remain an objective facilitator of activities on the app portfolio marketplace. Apptrade is paid a fee by the marketplace whenever apps are sold or traded.
Does Apptrade use sponsor capital for investing in cryptocurrency?
No. We acknowledge cryptocurrencies as a branch of digital goods. However, due to the volatile nature of most cryptocurrencies we are excluding them from app portfolios. We only use price pegged SmartCoins to store and pay out app portfolio earnings. Token revenues are not used for speculating cryptocurrencies.
Can I customize my own token?
Apptrade has a standard of quality that it maintains for all the apps listed on its app portfolio exchange. If a brand wants to issue a market for a singular project, listed separately from app portfolios, we encourage apps to meet our requirements for a custom listing. Portfolio token launches are administered by apptrade's network and don't require publishers to hold any tokens , hold token revenue, transmit token sales revenue.
How do we valuate apps?
Apptrade justifies its prices with app analytics published on the site. The general price of the app is different from the price of a token. But to determine the app's monthly cash flow, a different metric is used for determining the app’s gross value.
Sponsor dashboards will feature 3 key data points:
1. Projected monetary value of portfolio.
2. 6 months of trailing cash flow.
3. Number of users in portfolio.
The monthly average values are determined by real world data. The total value of the portfolio is based on the collective value of the individual apps.
Why did you choose the Bitshares Blockchain?
Bitshares has built the marketplace for SmartCoin creation. With the security and transparency of the Bitshares, Apptrade can fully embrace this new form of collaborative marketing.
Apptrade introduces sponsors to app portfolios as “for profit” vehicles. Sponsors must conduct their own due diligence and seek out advice from their own financial, legal, and business advisors. Apptrade does not render legal or business advice and makes no representations of any kind regarding the potential purchasing of User Issued Assets (also known as tokens) or the entities seeking capital.
Apptrade is not a broker-dealer and is not licensed as a securities broker or dealer or investment advisor and does not act as such. Apptrade intends to use Smart Contracts to automate factoring agreements. Apptrade is an objective facilitator of activities on the app portfolio marketplace in production.
Apptrade is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to FDIC and other consumer protections. This FAQ is for informational purposes only. The information does not constitute investment advice or an offer to invest.
Updated August 2017
Due to the updated classification of "digital tokens" by the S.E.C of the united states, U.S citizens are unable to participate in portfolio token markets as sponsors until further notice.
Publishers from the U.S are welcome to raise funds through a portfolio's factoring agreement. An account receivable model where cash flow is pooled among a group of publishers. Plus, Apptrade's network facilitates the sales of token and allocation of revenue. This means publishers are not the originators of their token markets and are not required to hold tokens during their app's listing.
"Common Enterprise" is present in each portfolio where sponsors are involved in the decisions that affect the direction of the portfolios they create. Publishers and sponsors are encouraged to do their own research and due diligence in this area of non recourse factoring agreements. Each jurisdiction is different, Apptrade and Bitshares are designed with adherence to regulation in mind.