Big Token Inc (fka BGTK)

[hot_karl]

FPVD DD PACKET:

BIGToken, one of the most successful verticals of nasdaq traded $SRAX is RMing into $FPVD.

What is BIGtoken? It is an app with 16+ million users with users in India, EU, america and around the world which pays people for their data which they glean through surveys.

How does BIGtoken make money? They sell the data from customer surveys to consumable packaged good companies who don’t have the ability to glean marketing insights because they don’t have an app. Social media/tech companies generate closed loop marketing insights by stealing our data automatically and selling it to advertisers. BIGtoken already has signed 7 of the top 10 CPG companies to include Kraft and Proctor and Gamble. The CPG sector spends over $20 billion a year on advertising so a lot of growth for BIGtoken

Here is a PR which explains their process:

https://www.businesswire.com/news/home/20200511005338/en/BIGtoken-Publicis-Groupe-Release-Research-Study-Exploring

PR confirming RM:
https://www.businesswire.com/news/home/20201001005304/en/SRAX-to-Move-BIGtoken-Into-its-Own-Public-Company

PRs released since October 1st which snow the rockstar team. Look at all of their resumes. This is not a typical “OTC team.” They know how to build a business.

https://www.businesswire.com/news/home/20201005005200/en/SRAX-Announces-Malcolm-CasSelle-as-Chief-Executive-Officer-of-BIGtoken

https://www.businesswire.com/news/home/20201013005397/en/BIGtoken-Announces-George-Stella-as-Chief-Revenue-Officer

https://www.businesswire.com/news/home/20201019005266/en/BIGtoken-Appoints-Daina-Middleton-and-Yin-Rani-to-Board-of-Directors

For anyone still skeptical on BIGtoken and if it is legitimate... tech review of BIGToken below!!

——————

Check this out from wallstreetbetches Twitter is this YouTube video from March of 2018: https://t.co/pUeAVmKyIh?amp=1 Their initial goal then was 500k users...which they have farrrr exceeded! Another interesting tidbit in that video is that fact that they don’t take VC funding for their startups. Most importantly, they took SRAX to NASDAQ via an OTC ticker in 2016!!! Aka FOLKS THIS IS NOT THEIR FIRST RODEO taking a company public to Nasdaq via OTC. Also take a look at this PR from June: https://www.businesswire.com/news/home/20200625005284/en/SRAX-Raises-13-Million-Fund-Rapid-Growth Notice in the PR it says part of the funds is meant to help grow BIGtoken. Or this PR: https://networknewswire.wordpress.com/2020/08/21/srax-inc-nasdaq-srax-reports-stellar-2q2020-results-expects-accelerating-growth-in-2020/ Which this quote excites me: “The positive growth within the Sequire business has been mirrored by SRAX’s BIGtoken platform, which has seen a number of advertisers sign up to gain access to the verified consumer insights provided by BIGtoken’s over 16.7 million users. SRAX revealed that they witnessed the likes of lottery.com, Singapore’s GroupM and consumer product giant Procter & Gamble sign up as clients over the course of the quarter with corporate advertisers increasingly looking to gain access to verified consumer data, which in turn could help them better reach and serve their audiences.” In an example in another PR BIGtoken was attributed to helping Kraft see 6.6% growth in a marketing campaign which was huge for kraft. Oh btw, I signed up for the app, great user interface.
————————
I looked back through many years of SRAX financial disclosures to see its growth as a company and glean any insights into the future of FPVD.

Off the bat, it’s apparent that SRAX went through a lot of growth and really had a lot of verticals over the history of the company.

Over the past two to three years, they have really locked in on their niche in the data management of BIGtoken and the sequire platform. They have been drilling down into these two areas to turn SRAX profitable and build up cash reserves. In June of 2020, they had $4 million cash on hand... then it was only a few months before we saw the announcement of a spin off of BIGtoken into its own company. Coincidence? I think not.

Anyway, it was a rocky start for SRAX as they looked to find their niche from 2012 to around 2016 but even through the rocks and massive debt they incurred through the sale of stock, they somehow managed to keep dilution at bay. From 2017-2020 they only increased OS from 5M to 8M. Very modest For three years imo.

That tells me they know how to effectively handle loans and repay on time to stay clear of toxic debt spirals. So that is actually a great sign to me.

I only found one RS to get them to nasdaq and it was a 1:5 in 2016 (the SS) was much lower on SRAX (OS of around 25M down to 5M following RS). So in eight years, one RS to get to nasdaq. Fair trade off to me.

Another aspect I found interesting is how communicative and transparent the company was throughout their entire history. You will find everything on otcmarkets.com and it is comprehensive. I love how communicative they are, unlike most otc tickers.

So bottom line: SRAX has found their niche with sequire and BIGtoken, have built up equity to a point where they feel comfortable to create two separate brands, and have the financial backing, deals in place, and subscribers at this point to avoid the rocky shoals of a typical startup.
————————-
Regarding press release which announced George Stella as the chief revenue officer. https://www.businesswire.com/news/home/20201013005397/en/BIGtoken-Announces-George-Stella-as-Chief-Revenue-Officer I have to say, this quote is huge: “I am very proud to say we have doubled revenues every quarter this year, and currently serve seven of the top ten CPG advertisers as repeat customers,” said Stella. “I couldn’t be more excited at the opportunity to pave the way forward as leaders in consumer privacy, data, insights, and media as our industry navigates this rapidly evolving new data economy.” Obviously I am a huge fan of the statement, DOUBLED REVENUES every quarter. I had to google it but CPG= consumable package goods so think about the big brands you see in the grocery store. We already know they have signed Procter & Gamble and Kraft, but I am curious about the other FIVE. So it turns out CPG’s advertising market is around $20 billion. Combined with the fact that they are looking for more effective ad campaigns and looking to increase digital ad spending due to covid impacts BIGtoken serves a very lucrative niche in providing targeted customer insights to large CPG companies who don’t have closed loop advertising systems which glean personal data 24/7 like amazon. https://www.businessinsider.com/consumer-packaged-goods-industry-grows-digital-spend-this-year-2020-9?IR=T
—————————
SRAX has to maintain a certain PPS in order to meet the NASDAQ requirements. The management team knows those requirements very well as they are the ones who took SRAX public from an otc ticker and uplisted back in 2016. This management team doesn’t believe in venture capital because of the strings attached and prefers going public as a means of raising capital.

Anyway, the thought that struck me was that the SRAX management feels they are in a strong enough position to maintain market valuation to not only maintain SRAX as a Nasdaq ticker but also spin off the BIGtoken vertical into another ticker. The success of their Sequire platform and the acquisition of LDmicro will keep SRAX in a strong position while allowing them to take a small hit in total revenues to spin off BIGtoken.

That tells me that not only is sequire is doing well, but BIGtoken is doing well enough to support pubco growth.

In a year they grew their customer input base of BIGtoken from 0 to over 16+ million. Last quarter they signed some huge advertisers like Kraft and Procter & Gamble to buy that data.

Needless to say, I think it’s very exciting that they feel confident enough to split two successful verticals to create brand identity.

I am also very excited about the earnings call in early November which will shed light on the exciting developments.
—————-
From wallstreetbetches regarding the vertical SRAX sold for $52 million which created the idea for BIGtoken.

In an interview the CEO of SRAX, Chris Miglino talks a little bit about the MD business and why they sold: "It focused on the pharmaceutical industry and aggregating doctors that were prescribing certain types of drugs. It didn't fit the business model of paying doctors for their data because that's illegal. You're not allowed to pay doctors for their data or their attention span, which you can do with consumers, so doctors are under a lot more scrutiny in that area so it didn't really fit. Plus it was a great exit for us. We started that from 0." (skip to around 6:30) They sold that business for 52 million and got over 30 million in cash. So they already have all of the insight and experience of having successfully launched, grown, and sold a very similar business model. Now the only difference is there are absolutely no legal barriers to entry as there were for the MD business.