Breakout Coin is holding its second ICO between June 13, 2016, at 5pm GMT and June 7, 2016 at 3pm GMT. This sale will be hosted by the Bittrex exchange, one of the largest cryptocurrency exchanges in the USA.
Breakout Coin is part of the Breakout Chain blockchain for gaming (as in poker, not World of Warcraft). They held their first ICO in 2014. Breakout Chain will host multiple currencies as part of a digital currency gaming service. Breakout Coins (BRK) are used as payments. Breakout Stake (BRX) will be used in a proof-of-stake minting process for the chain. There will be other coins as well, such as Sister Coin, which will play a role in the proof-of-work mining. The chain purportedly supports pegged sidechains as well, potentially allowing even more currencies to built on top of it.
Breakout Coin is created and maintained by Breakout Services, Limitada, a Costa Rican LLC, and it operates independently of the regulated poker and casino gaming sites operating by Breakout Gaming, which accepts the tokens for gaming. Breakout Services will also develop infrastructure, like block explorers and mobile wallets, to facilitate the use of Breakout Coin.
How are funds collected?
The ICO will be held on Bittrex (instructions here). Breakout Coins will be tradeable on Bittrex following the sale.
A maximum of 6.6 million BRK (Breakout Coin) and BRX (Breakout Stake) will be sold in the ICO, representing approximately 35% of initial BRK and 53% of total BRX.
3.3 million BRK and BRX were sold in the first ICO in 2014.
The remaining ~10 million BRK will be held for developers and for a marketing fund.
The price floor for the ICO is 4500 BRK/BTC. If not all 6.6 million are sold, the remainder will be destroyed. If all BRK are sold at this price (1,400 BTC), they will be distributed proportionally. BRX will be distributed if certain funding targets are met, starting at 2000 BTC and increasing according to the table below.
If all BRK are sold at the floor price, the total BRK market would be valued at approximately $3 million, assuming a price of $700/BTC.
How do the coins or tokens work?
How are they used?
The Breakout Coins are used as currencies in gaming.
What is the market for these coins?
These will be used in online gaming sites. The first company to use BRK will be Breakout Gaming, though it is unclear if other gaming platforms will be able to integrate them. A poker site using BRK will soon be live here.
How are they produced?
BRK increases at 5% per year through a combination of PoS and PoW. The PoS minting process relies on those who own Breakout Stake (BRX) tokens.
The supply of BRX never increases.
BRX Funding Distribution
The approximate reward tiers are:
- <2000 BTC Raised : 0 BRX rewards
- 2000 BTC Raised : ~6 BRX Rewarded per 100 BRK Bought
- 5000 BTC Raised : ~25 BRX Rewarded per 100 BRK Bought
- 7500 BTC Raised : ~60 BRX Rewarded per 100 BRK Bought
- 10,000 BTC Raised : ~100 BRX Rewarded per 100 BRK Bought
Above 10,000 BTC, the BRX reward is fixed at 100 BRX/BRK, and below 2000 BTC the BRX reward is fixed at 0 BRX/BRK.
All of Smith + Crown’s announcements for ICOs should not be construed as investment advice. In addition, some of the information contained above may be changed after we posted this; we urge the reader to read all source material before investing or passing judgment. If you see anything that has become obsolete, let us know.