Marketing network, RYVL (NASDAQ OMX:TMG), has announced changes at blockchain technology firm, TRUTH, which is one of its incubator companies.
RYVL, the trading name of The Marketing Group, said Ollie Southgate, the chief technology officer of TRUTH, is to take over as the chief executive officer from co-founder Mary Keane-Dawson, who will remain part of the team in an advisory and ambassadorial role.
READ: RYVL subsidiary launches blockchain-based data cloud to help users benefit from their own data
The Marketing Group (TMG) said the appointment of Southgate would add impetus to essential technical product developments.
TMG added that TRUTH, which was launched in November 2017 to provide transparency in the media supply chain via blockchain smart contract development, needs to focus on its technology platform development and, as part of the business plan, will be seeking additional funding.
The funds will be raised through the sale of equity in TRUTH, as well as token sales from the initial coin offering (ICO) that is is now scheduled for public sale in early 2019.
"We have been delighted to help incubate TRUTH over the past year and are pleased with the progress so far. It has been important to prove the concept in the market and also make sure any technical requirements can be met,” said Adam Graham, the executive chairman of RYVL.
“TRUTH has been advised to wait until new year to complete the ICO due to current market conditions around ICOs,” he added.
Data control into the hands of the user
TRUTH lets users choose to sell their personal data to brands, agencies and publishers and directly benefit from its use in personalised advertising in the form of discounts and offers on goods and services or as currency.
In return for access to their personal data, consumers will receive TRUTH Tokens, which represent consumer data held securely within the blockchain-enabled TRUTH Data Cloud, which can then be exchanged for the aforementioned benefits.
For the geeks out there, the TRUTH Data Cloud will have open application programme interfaces (APIs) and software development kits (SDKs) to encourage third-party applications to integrate with the marketplace.
At the time of the launch, RYVL said the platform would be inherently scalable and create huge use potential in forms such as influencer marketing, loyalty programmes and customer relationship marketing.
The new service is fully compliant with the General Data Protection Regulations that came into force in the European Union on May 25.
Listing opportunities eyed
RYVL has also decided to extend the private round of its token sale for TRUTH media, with the public sale delayed until the first quarter of 2019 at the earliest.
The company is also exploring the option to list on the AIM market of the London Stock Exchange.
First half growth
In its half year results at the end of August 2018, RYVL reported net revenues and underlying earnings (EBITDA) growth for the first half but cautioned on a potentially challenging second half for some of its subsidiaries.
The conglomerate reported a trading EBITDA for the period of €0.9mln, up from €0.7mln in the same period a year ago, while net revenue also rose to €6.9mln from €6.2mln previously.
READ: RYVL reports revenue and earnings growth in first half but cautions on “challenging” second half
However, the group’s operating EBITDA declined to €0.4mln from €0.7mln, which was attributed mainly to a client loss in the first quarter as well as the launch of TRUTH media, a blockchain global media agency, that was not profitable in the first half as anticipated.
In its outlook, the firm said that the second half of the year would “continue to be a challenge” for some of its subsidiaries and for the group as a whole.
RYVL added that cost reductions had been undertaken, but the impact of these would “not be felt until the final quarter of the financial year.