Accountancy and business advisory firm BDO has further enhanced its credentials in the innovative tech space by advising Perpetual Altruism, the company behind the upcoming Cryptograph platform, which is scheduled to launch on July 6, 2020.
Aiming to become a market leader in blockchain based digital collectibles and artwork, also known as NFT’s (Non-Fungible Tokens), the Cryptograph platform will feature new and original digital art and memorabilia from some of the world’s most renowned artists and icons.
Each Cryptograph, a one-of-a-kind digital creation, is sold at auction and then traded by collectors on the platform’s secondary market, raising money for charity every time they are transacted. The creators on the platform also have the opportunity to take a perpetual revenue share from their Cryptograph, giving them an entirely new way to monetize their talent and creativity, whilst at the same time delivering a philanthropic impact.
Thanks to blockchain technology, each Cryptograph is 100% owned by the purchaser and cannot be forged or destroyed, enabling owners to pass on a digital legacy.
Involved since Perpetual Altruism’s inception, BDO has advised the business on structuring, tax and accounting, and how to navigate the evolving accounting and regulatory landscape of the cryptocurrency world.
BDO’s team was led by tax partner David Britton who over the last 20 years has been advising start-ups, challenger banks, fintechs and more recently crypto asset clients, with support from audit partner David Butcher from BDO’s technology team.
Cryptograph’s vision brought a series of challenges, as the platform functions entirely on the Ethereum blockchain, where the digital collectibles are published and transacted. All revenues are generated in cryptocurrencies, and the company implements a social enterprise sustainable philanthropic business model that shares revenues with collectible creators and charitable causes. Finally, the Cryptograph platform introduces a revolutionary auction mechanism called the GBM (Gonnaud-Bessire-Mcdonaugh) auction where bidders get paid an “incentive” when they are outbid in real time during the auction.
David Britton, a BDO tax partner who advised Perpetual Altruism said: ‘New and innovative digital business models often pose unique tax and structuring challenges and the Cryptograph platform was no exception. We worked closely with the founding team to help bring their vision to life, from the recognition, holding and ownership of crypto assets, the structure of the charitable donations, the treatment of auction incentives and the corporation and operational tax treatment of Perpetual Altruism. We wish the company every success on the launch of the Cryptograph platform and we look forward to supporting the team on future innovations.’
Edouard Bessire, one of the founders of Cryptograph said: ‘We are very grateful to BDO who have been instrumental in helping us to develop and structure a sustainable philanthropic business model that uses the power of blockchain technology. The launch of the Cryptograph platform is an important step in the new digital ownership revolution which we hope will help bring greater trust and transparency to the crypto industry and lead to further mainstream adoption of blockchain.’
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