Is the Apptrade ITO following the same path as Snapchat IPO?

Following the recent Snapchat IPO having skyrocketed to a $32 billion market capitalization, technology investors worldwide have had their eyes opened wide to just how profitable mobile apps can be. Meanwhile, trends in blockchain technology have been innovating the way investment is taking place, with increasingly more startup companies turning to crypto-token-based crowdfunding solutions for simplifying fundraising for budding entrepreneurs while providing non-conventional opportunities for smaller investors to get in on profiting from potentially-disruptive business models. At the convergence of these two trends of mobile apps and crypto-crowdfunding, has come a new US-based venture: Apptrade.

Aiming to become the “Kickstarter for apps on the Blockchain,” Apptrade recently launched a crowdfunding campaign to generate the capital to build a platform supporting the funding, development and marketing of a curated selection of mobile apps. Issuing investors royalty-backed tokens to share in profits from multiple portfolios of apps – the basic premise of Apptrade is to serve as a “stock market of apps” using a SaaS (software as a service) platform.

For app developers seeking capital to build out their ideas for the newest, hottest apps – whether mobile applications, music and digital art programs, games, ebooks, or other digital media – Apptrade could potentially prove a simplified vehicle for accessing funds through networks directly supporting their vision. Bringing together a diverse group of developers for mutual benefit, app creators & publishers are able to launch their own portfolios of up to 100 apps per portfolio or join others to raise both awareness and revenue for their applications without creating debt or giving up equity. The business model fundamentally differs from conventional crowdfunding by collaborative funding going towards supporting multiple rather than single projects per campaign. Every portfolio designed to ensure all included apps are supporting the one another through regularly scheduled updates, cross-promotion, and high quality standards – and a number of strategies have been planned, including coordinated launches, app flipping, deep linking, portfolio leagues, and branding partnerships. As such, potential advantages of the model extend far beyond just the funding component – providing players with a rich ecosystem of resources.

In addition to serving as a platform enabling investment in portfolios of apps, Apptrade is also an agent for publishers of digital content – representing developers and their apps across a network of parties interested in purchasing successful apps. Actively promoting within finance communities to foster an awareness of apps as alternative assets, app developers and publishers may also leverage the platform as an outlet to sell their apps to private buyers – with Apptrade receiving brokerage commissions on apps incubated through their respective portfolios once the digital properties are sold, as well as earning fees when funds are raised through the sale of portfolio tokens.

While investors in individual portfolio tokens are to share in the project earnings for their portfolios, Apptrade itself is currently raising funds for its initial development through an Initial Token Offering (ITO), open to public investors. Currently in stage 2, Apptrade tokens – “APPX” – are being offered at a 25% discount and can be purchased with a number of cryptocurrencies such as BTC, ETH, DASH, and others as well as standard fiat currencies. Though Apptrade is raising capital from private investors as well, the APPX token will be used to perpetually raise the funds needed to maintain the scaling of Apptrade platform expenses while granting sponsors exclusive revenue-sharing opportunities with risk well-diversified through robust portfolios of up to 100 applications each. The platform also shall provide market analytics tools for sponsors to analyze trends, the portfolios’ economic trajectories, and relevant data to assist investment decisions – all while automating the funding allocations and revenue splits via coded smart contracts for each portfolio amongst its projects and token holders accordingly (minus publishers maintaining responsibility for transferring their share of profits back to Apptrade for the corresponding distribution.)

Portfolio tokens will be hosted as separate autonomous entities on a public ledger on the decentralized cryptocurrency exchange, OpenLedger DEX, by Denmark-based allying partnership entity, OpenLedger Apptrade Aps. According to ApptradeLLC founder, Daniel Pineda,

“With the transparency and security of the OpenLedger, Apptrade can fully embrace this new form of collaborative marketing and funding. If one or a few of the brands go viral and become hits, it should put eyes on the rest of the brands in the group. Our mission is to improve access to value for content creators worldwide.”

With much of the technological component operating on autopilot, much of Apptrade’s human capital is likely to be focused in growing the network. Both on the sides of growing their portfolios and educating capital communities on the structure of the investment model, there’s much work ahead for the venture to lay the foundations necessary to execute its vision – including establishing both a centralized and decentralized team of brand ambassadors and app brokers bringing new developers onto the portfolios, finding potential sponsors, and providing transparency on the conceptual model of tradable royalty streams from digital goods.

Could Apptrade succeed in turning app portfolios into a wide-accepted and traded alternative asset class into their own, outperforming the usual ROIs of stocks, real estate, and other popular investment vehicles? Time – and the market – will tell exactly how well this innovative fusion of crypto-based, diversified app portfolio crowdfunding/investing shall fare. Still yet to transition successfully from idea to proof-of-concept in a young blockchain space, there are, of course, no guarantees it is a business model that will stand the test of shifting market tides. However, OpenLedger CEO, Ronny Boesing, is optimistic for the partnership:

“Apptrade’s venture is an innovation in investment finance, one that could have fascinating results for the future of fundraising in general. As crowdsales and their ITOs have transformed cryptocurrency investing, Apptrade FPOs and digitally shared reserves will transform the app investment market in a spectacular fashion.”

For more information on Apptrade, visit www.apptrade.io or view their open-access 49-page strategic overview at https://ito.apptrade.io/docs/so.pdf

More information on partnering OpenLedger is also available at www.openledger.info