Global Blockchain Mining Corp (CSE:FORK) (OTCMKTS:GBCHF) is to carry out an initial exchange offering (IEO) for Toronto-based blockchain group MeVu Inc using its MVU digital tokens.
"Administering token offerings has proven to be a great business focus for us, because we get to work with real innovators of crypto and blockchain, to bring their visions to the public marketplace," said FORK CEO Shidan Gouran in a statement on Wednesday.
MeVu has developed an Ethereum-based platform for peer-to-peer online betting, which uses MVU as its official currency.
The platform matches counterparties for a given wager based on set odds, enabling each bettor to bet against one another (peer-to-peer) instead of betting against a central bookmaker (pari-mutuel).
"After the U.S. Supreme Court ruled in favour of legalized sports betting last year, there has been considerable interest from new entrants who want to get into this space," noted MeVu project leader and co-founder, Kelvin Coelho.
"The trouble is, when sports betting is being offered in a venue like a casino, their operating overhead comes out of each bettor's winnings in the form of a higher vigorish, which nobody wants to give up if they don't have to.
"By combining the power of blockchain technology with a sustained demand for sports wagering, MeVu is addressing a real and persisting need in this growing ecosystem with a 'lean' approach that ultimately benefits the actual participants, and not the middlemen."
The IEO will be conducted in multiple stages, each on different exchanges, up to a maximum of 55 million MVU out of the total supply of 105 million MVU.
From previous MVU sale efforts by MeVu, more than US$350,000 was raised for 5 million VU (between US$0.07 and US$0.08 per MVU).
For its involvement in the offering, Fork is due to receive compensation of up to 3 million MVU, which will be paid according to a set schedule in which up to 1.5 million MVU will be paid out with each US$100,000 raised.
FORK will be paid 50% of all MVU tokens sold at each threshold, to a maximum of 1.5 million and a lump sum of 1.5 million MVU will be paid out upon a cumulative total of US$1 million being raised in the IEO.
Global Blockchain will also be paid a 10% bonus on all sales from private investors introduced by FORK.
"Aside from being in a very in-demand category with a ready-to-go minimum viable product, MeVu has already seen success to date with its MVU token sales of more than US$350,000 for less than 5% of its token supply. We are very pleased to have reached this agreement with MeVu, and we look forward to a productive next few months as we carry out the IEO for them," added CEO Gouran.
Originally founded with a focus on crypto-mining, FORK has recently diversified also into professional services such as developing and administering launches of tokens and digital assets.
Shares in FORK in Canada surged over 33% to stand at C$0.020 on the day. In the US, the stock shed 2.7% to $0.01 each.
--Updates for share price rise--
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