Altcoin dividends - what do people think?

[Felics]

Hi all,

I wanted to discuss a new feature that some Altcoins are implementing into their token structure - i.e. dividend payment

We all know a handful of coins that offer "dividends" to token holders. This is through commissions or fees that it collects via their network (and distributed in some form of token, ether etc.).

Some examples (from my knowledge) include:

Augur
Ethbits
Peerplays
DigixDAO

Seeing as there has been a lot in the news lately especially from the SEC, I'd like to know if anyone has any idea what the legal position is?

I.e. are the coins mentioned above securities? Does a dividend equate to it being a security? What does that mean for them - i.e. long term prospect.

Also I have heard some exchanges like Bittrex are delisting those that do offer dividends but have no idea if that is true?

Keen to hear what people think

[g.m.tyshenk]

Hi all,

I wanted to discuss a new feature that some Altcoins are implementing into their token structure - i.e. dividend payment

We all know a handful of coins that offer "dividends" to token holders. This is through commissions or fees that it collects via their network (and distributed in some form of token, ether etc.).

Some examples (from my knowledge) include:

Augur
Ethbits
Peerplays
DigixDAO

Seeing as there has been a lot in the news lately especially from the SEC, I'd like to know if anyone has any idea what the legal position is?

I.e. are the coins mentioned above securities? Does a dividend equate to it being a security? What does that mean for them - i.e. long term prospect.

Also I have heard some exchanges like Bittrex are delisting those that do offer dividends but have no idea if that is true?

Keen to hear what people think

I would add Bitbond STO to your list of tokrns that pay dividends. Bitbond pays a dividend of four perecent. You can read more about bitbond and their dividend in their "light paper" found here:  https://cdn.crowdfundinsider.com/wp-content/uploads/2019/02/bitbond-sto-lightpaper.pdf. It is security token with approval by Bafin a German financial regulator. Definitely worth looking in to.

[spydee1522]

I think this is one of the best initiatives altcoins can do to make it comfortable for holding. To add to the list, I will say $BOLD from Boldman Capital and Bitbond but I am yet to experience that of Bitbond but with $Bold, I have been receiving eth since 2018 and still receiving every first week of another month and I think these dividends are worth receiving wish all altcoins does same for it holders.

[Endikadija]

Hi all,

I wanted to discuss a new feature that some Altcoins are implementing into their token structure - i.e. dividend payment

We all know a handful of coins that offer "dividends" to token holders. This is through commissions or fees that it collects via their network (and distributed in some form of token, ether etc.).

Some examples (from my knowledge) include:

Augur
Ethbits
Peerplays
DigixDAO

Seeing as there has been a lot in the news lately especially from the SEC, I'd like to know if anyone has any idea what the legal position is?

I.e. are the coins mentioned above securities? Does a dividend equate to it being a security? What does that mean for them - i.e. long term prospect.

Also I have heard some exchanges like Bittrex are delisting those that do offer dividends but have no idea if that is true?

Keen to hear what people think

They are all including on the list of security token because they are offering the security usage to the investors that cat to represent your shares in the company and the token it not offering the utility usage dude.
The long term prospect depends on the company.
That's true consider about they are security which not registered on US regulators.

[passwordnow]

Receiving dividend is all good if you have large amount of those tokens if you want to have decent profit from those.
But having small portion of their token just for the dividend, I don't think it's good enough although there's small profit but if you don't have plans of increasing it, I don't think it's worth it. I've invested to one dividend token which I won't mention and lost around 0.04BTC that's why I'm off with this kind of coins although I know there's still good ones existing. But I just stopped and don't have further plans of getting into it now, maybe in the future I will.

[Tipstar]

Dividend receiving coins are more secure than other in most case. But as the price of coin too keeps on changing. It's better if you receive dividend in other popular coins. For example some exchange tokens gives dividend on every coin while some gives only in their tokens. If you receive dividends on multiple coin, you are also diversifying your asset.

[Nalbo]

Dividend receiving coins are more secure than other in most case. But as the price of coin too keeps on changing. It's better if you receive dividend in other popular coins. For example some exchange tokens gives dividend on every coin while some gives only in their tokens. If you receive dividends on multiple coin, you are also diversifying your asset.

There could be ways to control the price movement in case of an STO. For example BB1 token would provide at least 4% yearly dividend on BB1 token. The ICO price of BB1 token is 1 euro and all of the BB1 tokens are to be bought at the end of 10 years with 1euro price. That way you'd be sure your holding won't be valuated below 1 euro but be higher as you'll also be paid for the dividends you get.

[g.m.tyshenk]

Dividend receiving coins are more secure than other in most case. But as the price of coin too keeps on changing. It's better if you receive dividend in other popular coins. For example some exchange tokens gives dividend on every coin while some gives only in their tokens. If you receive dividends on multiple coin, you are also diversifying your asset.

That is why I recommended BB1 token in my prvious post.  Bitbond is pegged to the Euro and its value does not change. 1 BB1token equals 1 Euro.  You earn quarterly dividend  pay outs in Stellar XLM tokens and can sell BB1 on exchanges to exit at any time.  And at the end of 10 years Bitbond says it will buy back any BB1 tokens at the same 1 BB1 = 1 Euro price.  

[g.m.tyshenk]

Dividend receiving coins are more secure than other in most case. But as the price of coin too keeps on changing. It's better if you receive dividend in other popular coins. For example some exchange tokens gives dividend on every coin while some gives only in their tokens. If you receive dividends on multiple coin, you are also diversifying your asset.

There could be ways to control the price movement in case of an STO. For example BB1 token would provide at least 4% yearly dividend on BB1 token. The ICO price of BB1 token is 1 euro and all of the BB1 tokens are to be bought at the end of 10 years with 1euro price. That way you'd be sure your holding won't be valuated below 1 euro but be higher as you'll also be paid for the dividends you get.

Exactly, remember that 4% value  is just the quarterly dividend but Bitbond also pays an annual (I assume lump sum?) payment based on the loan performance which when averaged in  adds anywhere from another 1-6 percent yield.  They have a yield calculator on their website to let you see the range of possible yields you might get.  Its a great passive income generator.

[g.m.tyshenk]

Of course I do want to add that I have read the whitepaper prospectus and looked at the Bitbond use case growth numbers. And I find the project is very reputable.  It was verified and approved as a security token by their German regulator Bafin, so that gives me a lot of reassurance that this token and company have been stringently vetted to comply with rigorous financial  standards.

[Jpti]

There are many projects that ensure dividends to token holders. This is one of the schemes to attract as many as investors and not to let price of tokens go down upon hitting exchanges. But I also do not understand whether such projects implement their such scheme in the long run. Who would hold tokens when their price increases high on exchanges? Bitbond STO is another project promising to provide dividends.   

[puremage111]

Well most top tier exchange can't really list coin that pays off dividend because of AML laws

Although most people would like to have a passive income by holding a certain coin, but it is generally on the grey area as paying off dividend can be in a form of money laundering.
Anyhow, i believe soon we will have more framework and rules so Altcoins which pays dividend can be listed on good exchanges

[g.m.tyshenk]

Well most top tier exchange can't really list coin that pays off dividend because of AML laws

Although most people would like to have a passive income by holding a certain coin, but it is generally on the grey area as paying off dividend can be in a form of money laundering.
Anyhow, i believe soon we will have more framework and rules so Altcoins which pays dividend can be listed on good exchanges

Not sure I agree with that entirely.  There are a few security tokens that pay dividends and have been rigorously vetted by financial authorities.  Bitbond STO offers a dividend and was the first German STO with its prospectus aprroved by the German financial regulator called Bafin.  Bitbond is worth investing in if you are looking for a good passive income generator.

[spydee1522]

Holding a bulk of altcoins that does not give you anything is really not a good thing at all. Considering comparing such an altcoin with another altcoin which gives dividends, just be sincere, which one will you choose. Of course the one that gives dividends. I'm really lucky to find such projects and still searching for more as I am yet to taste that of BitbondSTO with BB1 as tokens or fuel for the project.

[JCviggen]

I pay special attention to projects that pay dividends to their coin holders. These are mainly projects from gambling. I think that everyone should have such coins in the portfolio.

[Kwansimaa]

what makes such altcoins seem great to me apart from paying the dividends is that, your tokens are still all yours and can sell them anytime provided they are listed. Its such a good source of receiving something on what you have already and I think if most altcoins are going to follow this trend of dividends, wow, such a great crypto world it might be for us all.

[ivaf]

I think that dividends for altcoins are much preferable for investors. Such altcoins (and projects) have a great chance of success.