Tokens.com Corp. (NEO Exchange Canada: COIN) (Frankfurt Stock Exchange: 76M) (OTCQB US: SMURF) (“Tokens.com” or the “Company”), a publicly-traded company that invests in Web3 crypto assets and businesses linked to the Metaverse, Defi, Blockchain Gaming and NFTs, is pleased to report its financial results for the 12 months ending December 30, 2021.

“Q4 was our third quarter as a public company and our second full quarter with the proceeds from the April 2021 fundraise deployed,” said Andrew Kiguel, CEO of Tokens.com. “We achieved several milestones in 2021, including going public and two capital raises. We diversified our investments into new Web3 verticals including blockchain gaming and building a significant business in the Metaverse sector.”

All dollar figures are in United States dollars (“USD”), unless otherwise stated.

2021 Operational Highlights:

• CAD$25M equity raise in March followed by listing on NEO Exchange in Canada.
• Commencement of trading in Europe on the Frankfurt Stock Exchange.
• Commencement of trading in the United States on the OTC Venture Market.
• Purchase of numerous tokens during the year – Bitcoin, Binance Coin, Polkadot, Axie Infinity, Ethereum, Ankr, Terra Luna, Shiba Inu, and Solana.
• Majority control of Metaverse Group.
• Largest acquisition in Metaverse real estate history in Fashion District and announcement agreement with Decentraland to host the first-ever Metaverse Fashion Week which was held in March 2022.
• Successful growth in Metaverse assets and in building a fully integrated Metaverse real estate business.
• Successful closing in November of CAD$16M unit offering consisting of one common share and ½ warrant.

2021 Financial Highlights

• Acquisition of digital assets worth $30.3M, total assets increased to $43.6M
• Adjusted Net Income of $0.7M after removal of non-cash and one-time charges of $8.9M
• Adjusted Comprehensive Income of $1.6MM after removal of non-cash and one-time charges of $5.5M
• Positive staking operating margin of 97%
• 19.2% annualized staking returns on our cost basis
• Net gain on revaluation of digital assets before tax of $2.3M

Q4 Financial Highlights

• 30% growth in cryptocurrency digital assets from Q3
• Adjusted Net Income of $0.1M after removal of non-cash and one-time charges of $3.8M
• Adjusted Comprehensive Income of $4.3M after removal of non-cash and one-time charges of $5.9M
• Positive staking operating margin of 98%
• 28.4% annualized staking returns on our cost basis
• Net gain on revaluation of digital assets before tax of $1.3M

Tokens.com invests in Web3 crypto assets and invests and builds businesses linked to the Metaverse, NFTs, blockchain gaming and proof-of-stake (“PoS”), technology. Web3 is the broad term used to describe a new iteration of the internet based on blockchain technology, which incorporates concepts such as decentralization and token-based economics.

Operations began in 2020 with a focus on crypto staking. This involved using our balance sheet capital to purchase an inventory of tokens and staking them to earn compensation in additional tokens.

Today, Tokens.com has three Web3 verticals. The first vertical is involved in the purchase and staking, through PoS technology, of tokens. The second vertical is Metaverse Group, a majority owned subsidiary focused on building a virtually integrated digital real estate business. The third vertical is a wholly owned subsidiary called Hulk Labs which is focused on holding NFT assets and investing in crypto based games that have a token return attached to them. Tokens.com leverages its human resources across the three verticals and seeks to utilize synergies between these businesses which are all based on the same blockchain technology.

Our investment approach is to identify the key trends happening in the crypto and web3 sector and purchase assets and build businesses linked to the macro growth of these areas. We remain confident that our assets and businesses are poised for further growth in 2022 and beyond.

November 2021 saw all time highs for many cryptocurrencies. Since then, the backdrop has been less positive. Fears around inflation and interest rate hikes dominated financial news in December and January. In addition, fears of a war between Russia and Ukraine materialized in February creating volatility in world financial markets. Tokens.com shares were impacted by this, although there were no material undisclosed matters.

2021 revenue is solely from our staking operations, which is still in its building phase. Our industry moves quickly and much has developed since the end of 2021, which is outlined above. We look forward to continuing to create value for shareholders ahead.

Tokens.com management team achieved several accomplishments in 2021, including going public. Although capital markets have been volatile, our business has been consistently growing. Management is committed to building shareholder value over the long term and providing investors with exposure to Web3 assets and businesses.

Tokens.com seeks to stake tokens that are linked to the fast-growing DeFi and NFT sectors. The tokens we stake are the programmable building blocks required by DeFi and NFT applications. Thus, as those sectors grow, the greater the requirement for third party stakers like Tokens.com. Tokens custodies its digital assets with Coinbase, a SOC 1 type 2 certified digital asset custodian, a non-related party. See Coinbase Custodial agreement below.

Q4 was our third quarter as a public company and our second full quarter with the proceeds from the April 2021 fundraise fully deployed. Tokens.com benefited significantly from the rebound in cryptocurrencies during Q3 & Q4 as is evidenced by the token price appreciation of the top 5 cryptocurrencies held by the Company as follows:

A complete financial reporting package, including the Condensed Consolidated Financial Statements and Management’s Discussion & Analysis, is available on our corporate website (www.tokens.com), and the SEDAR website (www.sedar.com).

An investor call has been scheduled to discuss the Company’s 2021 financial results, hosted by CEO Andrew Kiguel, starting at 4:00 pm ET on April 4, 2022.

Conference Call Details:
Date: April 4, 2022
Time: 4:00 p.m. ET
Dial-In: 1 (866)455-3403
Passcode: 57798376#

About Tokens.com

Tokens.com Corp is a publicly traded Web3 company that owns and invests in an inventory of Metaverse, NFT, DeFi, and gaming based digital assets. Tokens.com’s focus is to invest in and build Web3 businesses through its primary entity and subsidiaries. Tokens.com is the majority owner of Metaverse Group, one of the world’s first virtual real estate companies. Hulk Labs, a wholly-owned Tokens.com subsidiary, focuses on investing in play-to-earn revenue generating gaming tokens and NFTs. Additionally, Tokens.com owns and stakes crypto assets to earn additional tokens. Through its growing digital assets and NFTs, Tokens.com provides public market investors with a simple and secure way to gain exposure to Web3.

Visit Tokens.com to learn more.

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This news release includes certain forward-looking statements as well as management’s objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified by such words as “may,” “will,” “plan,” “expect,” “anticipate,” “estimate,” “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of cryptocurrencies, as described in more detail in our securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.