Pires Investments Invests In DeFi Through DeTech Studio Limited

Investment company Pires Investments plc has invested in DeTech Studio Limited, a newly incorporated company which is developing a decentralized finance (DeFi) technology platform YOP.

YOP is developing a platform that makes it easier for less technical users to engage with DeFi. This platform is expected to be operational in Q1 2021. YOP’s primary focus is delivering access via a smartphone app (the App), which should make access to and interacting with DeFi services more straightforward and user-friendly. As part of this process, a new YOP token will be created, which will be issued to users to engage with the YOP platform. The token will form the basis of the YOP protocol, facilitating engagement with smart contracts on the Ethereum network. Investment returns are expected to be generated through fees from transactions and appreciation in the value of YOP tokens. It is expected that the YOP platform will enable portfolio management, access to cryptocurrency market data and cryptocurrency investment products all from the convenience of a mobile phone, with desktop and tablet versions to follow.

In a press release, Pires said that it has conditionally entered into a share subscription agreement to subscribe for 1,765 new ordinary shares in DeTech. The company will also be issued with 4 million YOP tokens, representing 4.5% of the total 88 million YOP tokens to be issued, of which 3 million YOP tokens will be subject to lock-in provisions. In the event that the YOP tokens to be issued pursuant to the YOP Agreement are not delivered to the company by 31 January 2021, the Subscription Agreement will be terminated.

The Pires Directors believe that the YOP App is akin to the platform developed by Robinhood Markets, Inc in the US in 2013 which, at the time, was one of the first platforms to provide easy access to financial markets and low cost dealing, all from the convenience of a smart phone. Robinhood now has a multi-billion dollar valuation and is planning an IPO. The Pires Directors believe that there is currently a limited range of competing products, none of which are believed to offer the potential functionality of the YOP platform and protocol.

“We are delighted to have found this new investment opportunity that is involved in a very exciting and fast-growing market,” said Peter Redmond, Chairman of Pires. “We believe that YOP offers opportunities for growth and could capture a significant portion of the DeFi market.”