SMURF - Tokens.com Announces Successful Capital Deployment into Key Digital Asset Holdings and Operating Performance

(TheNewswire)

TORONTO, ONTARIO – TheNewswire- May 12, 2021 - Tokens.com Corp. (NEO: COIN )(FSE :76M) (“Tokens.com” or “theCompany”), a Proof-of-Stake technology companythat provides investors with a simple and secure way to gain exposureto Staking rewards and digital assets that powerDecentralized Finance (DeFi) and Non-Fungible Tokens (NFTs), is pleased to provide an update on theCompany’s crypto asset holdings and capital deployment sincereceiving the escrowed proceeds from its CAD$25 million subscriptionreceipt financing (the “Offering”) in connection with the closingof its go-public transaction on April 28, 2021. The Company is alsopleased to share the operating performance of its Staked digitalassets year-to-date. All amounts in this news release are unauditedand, unless otherwise indicated, are in US dollars.

As of the end of Q1, the inventory held for Staking hadappreciated by 151.9%, as compared to December 31, 2020, with a SimpleWeighted Average Yield of 12.8%. As previously announced, the Companywill release Q1 financial results and hold an investor call hosted byCEO Andrew Kiguel on May 17, 2021.

Since the end of Q1, using additional capital from theOffering, the Company has acquired ETH (Ethereum token), DOT (Polkadottoken), and BNB (Binance token), and initiated Staking of these cryptoassets. In addition to Staked digital assets, the Company also holds abalance of 28.0 Bitcoin as of the date of this news release for thepurpose of purchasing additional crypto assets for Staking.

Tokens.com is earning a Simple Weighted AnnualizedAverage Return on its current holdings of 13.0%. These returns arepaid to the Company in additional tokens of whichever token is beingStaked.

Below is a table of the Staked Assets owned byTokens.com, quantity, price, and simple Staking yield as of the timeindicated. The aggregate value of the Company’s Staked Assets plusBitcoin as of the time indicated is approximately $23.6M.

Tokens.com Staked Assets:

Staking returns are subject to change and the figuresabove represent a current simple yield provided by each token.

* As of 12pm EST on May 11, 2021

** Estimated Holdings

“We are excited to be scaling our proven businessmodel, and be putting capital to work efficiently during a time whenDeFi and NFTs are at an inflection point in terms of globalrecognition, use, and adoption. We believe that the crypto assetsbeing Staked by Tokens.com are ones that we believe underpin amulti-trillion dollar global market opportunity,” commented theCompany’s CEO, Andrew Kiguel.

Tokens.com: A Scalable, ESG BusinessModel for Accelerating Trends

The world is rapidly digitizing and digital assets areexpected to play a key role in this global transformation. TheCOVID-19 pandemic has accelerated and brought increased awareness tothis trend. Tokens.com was created to capitalize on major fundamentalchanges occurring with this potential shift and expected increasedglobal demand for this model:

• - The macro environment, fiscal stimulus anddemocratization of finance is accelerating adoption trends towardsblockchain technology and the continued digitization of assets andfinancial products and services. The Company believes this movement ishere to stay and still in its infancy when it comes to broad adoption.The leading use cases today are DeFi and NFTs, each of which have seenincreased adoption and growth globally. As of this news release, thereis $80 billion locked in DeFi 1 and over $2 billion was spent on NFTs in Q12021 2 .

  - A magnitude of applications for DeFi and NFTs arebeing built on programmable digital assets platforms such as Ethereumand Polkadot. These applications pay fees to Ethereum and Polkadoteach time there are transactions. Tokens.com plays an essential rolethrough Staking or transaction validation services and is compensatedin tokens for this service.

  - There are two primary ways to validate transactionblocks on a blockchain: crypto-mining or Staking. The Company believesall key new digital asset platforms are being built on Stakingtechnology, not only because it is environmentally friendly, butbecause it is faster and has exponentially more throughput thantraditional crypto-mining.

  - Tokens.com views Staking as a far superior model tocrypto-mining because instead of expending computational energy thatrequires expensive hardware, Staking usesownership to perform the exact same transaction validation service.Stakers get to own appreciating crypto assets while crypto-miners haveto own rapidly depreciating hardware. This is why Staking is viewed asthe environmentally friendly alternative to crypto-mining.

Pillars of Tokens.com’s nextgeneration business model:

Ethereum:

Ethereum is not a currency; it is a decentralizedcomputing platform that provides the infrastructure necessary fortransformational trends and decentralized applications such asDecentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) throughits programmable asset, ether (ETH).

Ethereum launched in 2015 as a decentralized,blockchain-based global supercomputer to serve as the foundation foran ecosystem of interoperable, decentralized applications powered bytoken economies and automated smart contracts. Assets and applicationsdesigned on Ethereum are built with self-executing smart contractsthat remove the need for a central authority or intermediary. Thenetwork is fueled by its native cryptocurrency, ether (ETH), which isused to pay transaction fees on the network. Being open-source,programmable, private and censorship resistant, Ethereum forms thebackbone of a decentralized internet, which has already spawnedsignificant innovation like initial coin offerings, stablecoins andDeFi applications. The ETH token currently has a market cap exceeding$450 billion as of this press release 3 .

Polkadot:

Polkadot is a network for interoperable blockchains.The Polkadot blockchain network allows blockchains to be designed forvery specific uses and still be able to leverage security and databuilt within the Polkadot framework.

Moreover, Polkadot is a blockchain network designed tosupport various interconnected, application-specific sub-chains calledparachains (short for parallelized chains). Each chain built withinPolkadot uses Parity Technologies' Substrate modular framework, whichallows developers to select specific components that suit theirapplication-specific chain best. Polkadot refers to the entireecosystem of parachains that plug into a single base platform known asthe Relay Chain. This base platform, which also leverages Substrate,does not support application functionality but instead providessecurity to the network's parachains and contains Polkadot'sconsensus, finality, and voting logic 3 .

Staking

In Proof-of-Stake (PoS) consensus mechanisms, nodesdeposit tokens that are then used to validate transactions on thenetwork. The nodes that are chosen are done so at random and arecompensated in tokens in return. Staking is an alternative tocrypto-mining on a Proof-of-Work network, where rather than expendingcomputational energy, they give up the opportunity cost of capital.Staking requires a level of technical expertise 4 .

Some PoS networks allow the holders of the Staked coinsto participate in major governance decisions of the network through avoting process. Generally speaking, the more coins that are Staked,the more power this individual has on the network 4 .

Decentralized Finance (DeFi)

Decentralized finance (DeFi) is a new class offinancial applications that provides users with automated andtransparent alternatives to traditional financial services without theneed of financial institutions. The most popular DeFi applicationsinclude decentralized lending, borrowing, asset exchanges, and thedecentralized creation of derivative assets. Once Ethereum migrates toPoS in connection with Ethereum 2.0, Tokens believes the vast majorityof DeFi applications will be built on top of PoS blockchains. As theDeFi sector grows, the blockchains that power DeFi are also expectedto scale, as are the rewards paid by those blockchains to secure theirnetworks 4 .

Non-Fungible Tokens (NFTs)

Non-fungible tokens (NFTs) are a class of individuallyunique tokens frequently issued using the Ethereum ERC-721 standard.While cryptocurrencies strive to be fungible in that each token isinterchangeable with one another, NFT’s are one of a kind makingthem particularly useful for the gaming industries. Thestandardization allows any in-game items or identity to be used acrossvarious applications, even if they were built by different companies.While gaming is one use case, there are others such as rare art thatcan benefit from provable digital scarcity for uniqueitems 4 .

Sources:

1 https://defipulse.com/

2 https://nonfungible.com/

3 https://messari.io/asset/ethereum

4 messari.com

About Tokens.com

Tokens.com Corp. is a Proof-of-Stake technology companythat provides investors with a simple and secure way to gain exposureto Staking rewards and digital assets that power Decentralized Financeand Non-Fungible Tokens, without the burden of buying, managing andsecuring digital assets themselves. The Company creates value for itsinvestors through earning Staking yields and the appreciation of itsdigital asset inventory, all achieved through environmentally friendlytechnology.

Further information can be found on the Company’swebsite: Tokens.com.

For further information, please contact:

Neither NEO Exchange nor itsRegulation Services Provider (as that term is defined in policies ofthe NEO Exchange) accepts responsibility for the adequacy or accuracyof this news release.

FORWARD-LOOKING STATEMENT DISCLAIMER

Certain statements in this newsrelease have been derived from third party sources and have not beenindependently verified by theCompany. In addition, this news release contains forward-looking statements and forward-lookinginformation (together,"forward-looking statements") within the meaning ofapplicable securities laws. All statements, other than statements of historical facts, areforward-looking statements. Generally, forward-looking statements canbe identified by the use ofterminology such as "plans", "expects',"estimates", "intends", "anticipates","believes" or variations of such words, or statements that certain actions,events or results "may", "could","would", "might", "will be taken","occur" or "beachieved". Forward-looking statements in this news releaseinclude statements regarding: the Company's expected use of its bitcoin; expected annual returnsand yields; the potential size of the crypto asset market; the impactof digital assets on theeconomy; expected adoption of blockchain technology and marketopportunities related to same; and the Company's beliefs regarding the use of Stakingtechnology by new digital asset platforms. Forward looking statements involverisks, uncertainties andother factors, that could cause actual results, performance, prospectsand opportunities to differ materially f rom those expressed or implied by such forward-looking statements,including that: the Company's yields from Staking may not continue at the levels expected;competition or other factors may diminish expected returns; marketadoption of blockchain may beslower than expected; the Company may need to deploy its Bitcoin inways other than currently anticipated; the Company may be unable to raise financing needed tocontinue its business on terms expected or at all; the Company's business is subject tocybersecurity risks; and regulatory changes may impact the Company'sability to conduct itsbusiness as currently conducted, as well as other factors beyond theCompany's control, and those risk factors included under the heading "Risk Factors"in the Company's filing statement dated April 22, 2021, which isavailable under the Company'sprofile at www.sedar.com . Although the Company believes that the assumptions andfactors used in preparing these forward-looking statements arereasonable based upon the information currently available to management as of the date of thisrelease, actual results and developments may differ materially from those contemplated bythese statements. Readers are therefore cautioned not to place unduereliance on these statements,which only apply as of the date of this release. The forward-lookingstatements in this news release are made only as of the date of this release andthe Company does not undertake any obligation to update any forward-looking statements,except as required by applicable securities laws.

Copyright (c) 2021 TheNewswire - All rights reserved.