Shareholder Update – Q4 2020 (English)
It has been a while since our last shareholder update. We hope everything is doing okay in times of the pandemic. As you all know, Ockel has been the first hardware company, in the world, to perform a security token offering. You were part of this exciting innovative approach of financing a start-up / scale-up. We are extremely thankful that you supported us and that you recognized this opportunity.
Today we have some great news updates for you regarding your Ockel Token investment and about Ockel as a company.
1. OCKEL TOKEN UPDATES
Initiatives like our Security Token Offering (STO) have, by now, also been recognized positively by the Dutch Authority of Financial Markets (AFM). Where the AFM still places severe warnings for Initial Coin Offerings (ICOs) for utility tokens like Bitcoin. We want to update you on the current situation regarding regulations, trading, and campaigning.
1.1 Security Tokens Regulations
The current legislation is basically unprepared or written for new and innovative form of financing offered by the Ockel Token. The challenge now is that regulations need to get in place so that Ockel tokens are truly classified as tradable securities. Unfortunately, the market is still free to trade utility coins due to the lack of regulation, but the more pure and safe asset class we’ve created with the Ockel Token is still awaiting regulation.
Severe warnings placed on traditional ICO’s are caused by the fact that they technically don’t fall under any regulation, nor does it have an underlying value (other than the utility). As opposed to a Security Token where you inherently possess a (token) share in a company, with the rights of dividend and value improvement.
A traditional saying in the business context goes, you can recognize a pioneer, because of the arrows sticking out of the back. Unfortunately, for now, the innovator suffers and although recognized for its informativeness and creating a path, he doesn’t win.
This is of course also disappointing for us. With other crypto coins and tokens, consumers can do what they want. And our instrument needs to wait. AFM/DNB even recognize the fact that it is probably more lucrative for companies that consider any token instrument, to structure it right now to NOT fall under regulation.
Having known that innovation is actually very hard and certainly not a guarantee for success, we are sure though, the best is yet to come. From the AFM report (Download below), one can conclude that AFM/DNB is advocating for European regulations on this field. Although perhaps a logical position to take, this might not be the innovative approach or proactive approach, one would like to see from a government, that is a believer in rapid new technology adoption, such as blockchain.
Read more about the regulations on security tokens in the AFM’s report.
One of the main things every one of course is waiting for is the tradability (and therewith bringing liquidity) in the OKL tokens. We are in several negotiations with platforms and technical crypto partners. Technically it is all very simple and already possible to set that up. It is what the other crypto also does. They are similar to ERC-20 tokens mostly.
What we are waiting for is a licensed platform that legally allows the buy and sells functionality of security tokens. Ockel being a Dutch company, we need an AFM licensed platform for that. Our technical partners (Byelex) founder also wrote an interesting blog (in Dutch).
1.4 Campaigning Ockel Tokens
Some may have noticed we stopped the active campaigning of our tokens; we did this in pursuit of more clarity. As regulations will, hopefully soon, become clearer, restrictions may also follow.
At Ockel we thought long about how we can “guarantee” your investment in the best way. At this moment we determined a static price of the token, at the initial sale. The price (1 OKL = € 0,125) stays unchanged.
Once the tokens become tradeable, the supply and demand will automatically determine the market price. We plan to launch a new OKL promotion campaign at that point in time where liquidity can be reached.
We would like to emphasize that at Ockel, your interest, as an investor from “the first hour”, is very important to us. We are investigating the promotion opportunities and regulations surrounding so-called “airdrops”. This popular phenomenon with ICOs, could also potentially be a tool to create special attention for our company and the OKL token. In addition, it may serve to give our investors an extra reward.
We expect to be able to tell you more about this in Q1 of 2021 and you can also count on a completely new Ockel update at that time.
2. COMPANY UPDATES
Of course, everyone is curious how Ockel Computers is doing and as a company is progressing. We are happy to give you an update on the latest developments and our road map.
2.1 New Product Developments
On the product level, we have started several new projects. Unfortunately, we have not been able to launch them yet. As almost everyone will understand, the one-time investment in complicated hardware such as a mini PC is significant. As a start-up/scale-up, we have to be careful with the market situation, technical challenges and liquidity constraints. Ultimately we chose not to release any new products (yet).
We had two projects in full swing, but we decided not to launch them (yet). Since everyone is curious about Ockel, we have decided to reveal two of our projects to our shareholders. We would love to hear your feedback and ideas you have!
2.2 New Ockel Sirius B
2.3 Ockel Portable Screen
2.4 Improved Ockel Sirius A 2020 edition
We are excited we were able to update the iconic Sirius A Pro. We have further improved the PCBA design and stability. In addition, temperature management is also better balanced, which results in less heat production. In the first week of October we finished the new production run and the 100% quality control came out good. After incidental small rework, there were zero units with nonconformities or defects. We now have the improved Ockel Sirius A Pro back in stock. It is now available in our online shop and a new, exciting media campaign will follow in Q4.
2.5 Product Demand and Use Cases
While the demand of the Ockel Sirius A is popular on a consumer level, particularly in Japan and the USA, the use cases in a business environment are even more prevalent.
There are tons of use cases where small portable, battery-powered Windows computers are needed and more and more where Ockel Sirius A is now used. From the Royal Netherlands Army in remote locations like Mali to oil rigs in California. From large server rooms for internet use to hospitals in Belgium and France. In Q4 we start a new pilot, with a specific use case for pharmacists. There are several pilots waiting for testing units and we have some new commercial projects starting in Q4.
We hope this update has brought clarity and we aim to send more shareholder updates in the future. We’re happy to answer any questions you still might have. Feel free to send us an email to [email protected].
Thank you for your continuing interest and support.
The Ockel Team