Cross Coin and Starta Accelerator to pioneer new VC tools with first STA token buyback following Cindicator tokensale

Funds raised through a tokensale by one the project’s portfolio companies will be used to deliver value to Starta token holders.

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Throughout the month of September, hi-tech startup Cindicator (CND), which is part of the Starta Accelerator portfolio, will be selling cryptographic tokens in two successive rounds.

A proportion of the new tokens will be transferred through Starta Accelerator to Cross Coin, the company through which $5 million was crowdfunded for investment in Starta Accelerator’s portfolio.

Holders of Starta tokens (STA) released by Cross Coin will, for the first time, benefit indirectly from the distribution of the portfolio companies’ tokens. Cross Coin will repurchase STA tokens from the open market using proceeds from the sale of its share of CND tokens.

In accordance with Cindicator’s terms of placement, 18% of CND tokens released will be distributed to the company’s shareholders. Around 5% of these, or approximately 0.9% of the total number of new tokens, will be distributed to Starta Accelerator, one of the shareholders. In turn, Starta Accelerator will send a third of the received tokens to Cross Coin Pte, a Singapore-based company, in proportion to its share in the SPV ‘Starta Accelerator 16/17’.

Cross Coin intends to sell the CND tokens received from Starta Accelerator to a strategic investor – taking into consideration the conditions of the one year vesting imposed on these tokens – and to use the entirety of the proceeds to buy Starta (STA) tokens.

“This is a new mechanism developed by us specifically for participants of venture-based token sales and providing an opportunity to participate in the portfolio’s startup businesses. Participants of Cross Coin’s token sale will be able not only to expect profits from startups’ exits, but also to participate in intermediate buybacks by passing through all stages of growth for each of the 21 startups in the investment pool and new startups, which will enter the accelerator portfolio in the future,” commented Alexey Girin, co-founder of Starta Accelerator and the Starta Capital VC Fund.

STA tokens will be bought back from the market in WAVES and BTC. Starta tokens will be repurchased at a market price, within one month from the date of funds from the sale of Cindicator tokens being credited to the Cross Coin wallet designated for the buyback procedure. The technical possibility of transferring CND tokens from Cross Coin to the buyer’s (strategic investor’s) wallet will be possible only after vesting, with a period of one year applied on these tokens.

At the same time, Starta Accelerator will maintain a share in Vote Inc, a shareholder of Cindicator, and expects to continue receiving profits as far as Cindicator develops. CND tokens are infrastructure tokens for the Cindicator technological ecosystem. The distribution of tokens should be considered as a ‘bonus’, rather than an exit from the Cindicator project.

The process of buying STA tokens back is carried out on the initiative of Starta Accelerator. Cindicator does not have any obligations to owners of STA tokens or to Cross Coin Pte. CND tokens are not a type of security, and they are prohibited for sale or transfer to citizens or residents of the USA, Singapore and a number of other countries.

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) – Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
 
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
 
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He’s written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
 
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein’s professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he’s travelled for nearly 30 years as a Canadian expatriate living around the world.
 
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, “The Hitchhiker’s Guide to the Seas’ travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he’s raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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