Is there any reason for them not to?

We expect a lot of our token-holders. Given we cannot or don’t want to make some things public, like our profit-and-loss statement, we’re asking them to trust us that swapping into shares is the best solution for everyone involved.

What if they say no?

I believe our community will back it, especially considering we’re on solid footing as a company. But I will respect their decision either way.

Did Modum pay a dividend on the tokens in 2018?

No.

Are you profitable?

We are booking certain profits, but have reinvested in the business.

Why didn’t Modum issue tokenized shares in the first place if that is the more sensible option?

That was the original plan, but the infrastructure wasn’t in place at the time. There were barely any market participants, and there was a lot of legal uncertainty. That’s changed since 2017.

Why did you opt for Daura, a joint venture of law firm MME and Swisscom?

We looked at several Swiss-based options and a few foreign offerings. We don’t want to rush things, but I had to make a decision based on what is operational now. The other projects we looked at weren’t ready to launch yet.

Looking ahead to next year, provided you have shareholders, not coin-owners, what type of financing are you looking at?

That’s yet to be decided: it could be debt, equity, strategic partnerships, joint ventures, or a capital increase on our existing shares.

How much would you like to raise?

In the double-digit millions. 


Marc Degen co-founded Modum in 2016 together with his brother, Pascal Degen, an engineer and pharmaceutical industry veteran, and Thomas Bocek, a professor of informatics at the University of Zurich. Degen, who studied computer science and engineering prior to earning an MBA in St. Gallen, worked in telecommunications. He switched to the blockchain industry in 2015. Modum's 2017 initial coin offering took in $13.5 million, alongside $500,000 in seed funding. The company, which uses sensors and blockchain technology to improve transport and storage conditions for goods, is specialized on drugmakers. Degen also co-founded Trust Square, a workspace for blockchain start-ups in the heart of Zurich's banking district.