An ecosystem for investing in crypto assets

Transcription

1 An ecosystem for investing in crypto assets White Paper 1

2 Contents Contents 2 Main Features 3 Market Problems 3 Idea 5 Description 7 Audience 10 Market Prospects 11 Business Model 12 Competitors 13 Development Risks 14 Mission Statement 14 Core Team 15 Platform Model 17 KRPT Token 18 Roadmap 20

3 Main Features Kript is a trading social network and a service for investing in crypto assets within one mobile application. Convenient trade of popular cryptocurrencies and ICO-tokens Major news and analytics Advice on portfolio management from artificial intelligence Trading ideas from experts and portfolios of successful traders Communication with the community within an App Market Problems Inconvenient interfaces Most of the crypto stock markets have specific interfaces that contain a lot of technical information. They are made for aggressive speculations and that kind of people who have a broad experience at the Forex and the stock market. They are not for ordinary people whatsoever. Excessive commissions The exact opposite is primitive Bitcoin wallets. They are too-simple, yet the spreads and commissions can reach up to tens of percent. To buy them is not profitable at all. 3

4 Lack of analytics There are a lot of currencies and projects, but the information about them is too decentralized: the descriptions of the projects are published on dozens of different advertising platforms; meanwhile, analytics and media markets are not formed yet. Therefore, people are forced to collectively understand the quality of assets for investment monitoring the forums from the 2000s. But if all those enthusiasts and speculators are willing to spend a lot of time searching for information, the classical investors and ordinary bitcoins holders who have a limited knowledge about crypto market need help. Vulnerability for scammers Many existing services can hardly be called safe. Here are three examples: On July 13th, 2017, there were at least $400,000 stolen from users of Jaxx wallets. As developers explained after, anyone who had a 20-second (network) access to your computer could extract your 12-word backup phrase, copy it and get access to your wallet. On July 20, 2017, hackers exfiltrated over $80 million from Parity wallets. The users store their money in the special wallet called multi-sig. This wallet is based on smart-contract and available to several users at the same time. Hackers used a vulnerability that allowed them to redefine the owner of the wallet. On June 17th, 2016, an unknown hacker stole $50 million from the first block-investment fund the DAO. He found an error in the code, which allowed him to repeatedly transfer tokens to his account within one transaction. Besides, large thefts are widely covered by the mass media. This fact drastically reduces the interest of potential investors to the cryptocurrency and ICO; moreover, it hinders the development of technology. 4

5 Too many speculators The lack of analytics, fraud risks, too-complex or too-simple interface shapes a client s profile. This is either an aggressive speculator or this kind of person who is ready to buy with a spread of 10% and forget about the trade for months. If there were more private investors in the crypto market, they would be followed by institutional investors. That means, there would be more liquidity, the market would be more resistant to manipulations with the price of assets, and, most importantly the presence of major players in this market means that the cryptocurrency is a serious financial instrument and will exist for a long time. Idea The world s biggest stock exchanges are centralized. It is a huge risk of losing money for users. The wallets keep private keys in one place, many services create so-called crypto banks : all this contradicts with the very concept of decentralized markets and the elimination of intermediaries from transactions between participants. What is Kript Kript is not a broker, a stock market or a wallet. It s not even a fund or a prediction market. It is an ecosystem for investing in crypto assets. We want to help millions of investors to invest money in crypto assets and ICO tokens simply and safely. 5

6 Simplicity Trading, news, analytics, communication. Everything is in one place. To make it clearer, imagine a guy called Max who decided to become a crypto investor. He downloaded Kript knowing nothing about the stock market. To choose an ICO suitable for investments, he opens companies ratings, selects the appropriate one and reads reviews from the experts relying on description and scoring. After making just a few clicks, he buys the tokens. He also subscribes to the company s news in order not to miss upcoming events and monitor the profiles and actions of successful investors. From now on, he can analyse a crypto world by himself. Safety Kript is based on the Ethereum platform. The security of transactions and Max s personal data are protected by smart-contracts. Independent security services oracles are used to authorize transactions within the network. Kript does not have access to Max s account keys and can not independently change the balance or make transactions. All operations are only performed with the client s consent, taking into consideration the best industry practices for digital security. Benefits Kript is a platform for the knowledge exchange. Users can monitor other users portfolios what assets they include and what profit they bring. Kript creates a rating for Max s transactions and demonstrates the most efficient investments. If Max thinks that he understands enough and ready to help others, he can earn an extra profit by making his portfolio public. A platform brings an opportunity to get rewards for that kind of users who share their knowledge and experience with other members of an ecosystem, thus becoming Kript s experts. 6

7 Description Portfolio This section allows users to add their crypto assets to Kript. For this, you need to create a public key of your wallet. After entering the data, the user will receive a clear and complete assessment of the state of the investments, the dynamics of changes in their profitability, and operational recommendations for portfolio management based on the selected risk parameters. Instruments This is a so-called showcase of cryptocurrency, ICO-tokens and crypto funds. In this section, a user can get more details about each asset: view the description, read the latest news and analysts reviews, find out more about financial indicators and forecasts from the Kript experts. News feed Social parts of the application are the news feed, forecasts, and messages from different users. The section is personalized for each Kript user and based on our recommendation system. This allows you to receive only relevant content and spend less time on learning about the market and your investments. ICOs It is a calendar about all existing and future ICOs with our analytics. It includes scoring from financial analysts and an automatic risk assessment based on an open source monitoring. Kript takes into account the investment strategy of the user and tells him what share of the portfolio is better to invest in new assets (0-15%). You can also buy ICO-tokens in this section. 7

8 Component API Trading functionality of the crypto stock markets Those users who already hold crypto assets and use existing crypto stock exchanges will be able to trade directly from Kript through the famous APIs. Component P2P deal A decentralized system for p2p transactions between users finds the best price among Kript members and external sources of liquidity and makes a safe trade at the best price currently available in the market. Component Forecast This section is based on the fork Steemit. Investors and experts give you access to the information about their portfolios and transactions for reward: other users can subscribe to their profiles for tokens. Anyone can publish their forecasts and earn the ratings. If other investors use your idea, Kript automatically charges tokens to the author of the idea in proportion to how many commissions have been paid by other investors. The more tokens the author collects, the higher his idea will be in the ratings. In this case, experts have a motivation to give more accurate predictions, and the community to pay them for useful advice. Component Crowd forecasting This section allows you to create and monitor aggregators based on users opinion through price forecasts on individual crypto assets and the market as a whole. 8

9 Component Virtual financial advisor A virtual financial advisor is a conversational interface, which is based on the technologies of artificial intelligence. You can communicate with it via chat or give voice messages. The advisor records time, a vibration and tone of the messages adjusting individually to each user. Partnership with stock markets and services We are planning to build close partnerships with large crypto markets, platforms, ICO operators and information agencies in the Blockchain field. To convert crypto currency into fiat money and back, we are planning to cooperate with the largest players in several target regions. To collect the maximum amount of useful information in the Forecasts section, we are planning to work with companies such as Augur, Gnosis and other market forecasting projects. KYC procedure The KYC procedure involves applying scenarios of the app usage to already identified users who have crypto assets following the laws of Singapore. 9

10 Audience Cryptocurrency and token holders who are looking for a convenient, safe and single interface for trading and analytics New private investors who are looking for safe and clear service for entering the market Institutional investors who are looking for an opportunity to monitor experts opinion and the situation on the market 10

11 Market Prospects More wallets According to the latest results of the study made by the University of Cambridge, the number of the unique active bitcoin wallets reached up to 11,5 million at the beginning of In 2013 the number was only 2,6 million.ons More assets There are more than 1000 crypto assets on the stock markets so far. Furthermore, the number is increasing drastically. Some of the assets have already gained the support and trust of people, while others have fallen into the category of pump and dump. According to the analysis of the price dynamics of 100 cryptocurrencies in the first half of 2016, the average profit was 357%, only 13% fell in price. But the historical profit shouldn t be the main reason to buy. What is more important is to understand the subject of investments and expertise in the crypto market. This is exactly what Kript offers you.money on commissions Capitalization will grow From the beginning of 2017, the market of cryptocurrency and crept assets has increased in 1,5 times. As stated by Coin Market Cap, a total market capitalization by August 8th, 2017 was $145,4 billion. According to the same resource, cryptocurrency daily turnover was around $7,3 billion. Despite the bitcoin growth, its capitalization is still inferior to the Altkoins, and its dominance index is only 46%. This is how the total market capitalization of cryptocurrency has been growing since the beginning of A Blockchain technology is the future of financial market but for this future, we need new financial services. Kript is one of them. 11

12 Business Model Target markets Singapore, Hong Kong, China Mainland, India, Japan, South Korea, Vietnam, Malaysia. The project is registered in Singapore. We plan to make money on commissions Commission for transactions Our service is based on the best deal policy. Kript will support trading with several large exchanges: if the customer places an order for a purchase and there is a better price on the third-party site, the client will pay a commission to this site, not to us. But if the deal will happen within Kript the commission goes to us.o make money on commissions Commission for services We will get part of a commission from the service that users exchange between each other within Kript. For instance, when one user subscribes to an open profile of another, he transfers a onetime payment with KRPT tokens, we receive a commission for this transfer. Or when users donate money to the author for the content they like, we also get the commission for this. Our business model is based on three key parameters the number of customers, their assets and the number of transactions: Subj / Year 1st 2nd 3rd 4th 5th Number of clients, million Clients assets $200 $1 000 $2 000 $5 000 $ Number of transactions Revenue (commission for transactions), million $2 $10 $20 $50 $100 Revenue (commission for services), million $2.5 $12.5 $25.0 $62.5 $125.0 Total revenue, million $4.5 $22.5 $45.0 $112.5 $225.0 KRTP capitalization, million $50 $100 $200 $500 $

13 Competitors Platform Form of realization Investment possibility Consultant Analytics Fraud Limit on the number of cryptocurrencies KRIPT.IO Cryptonator BIT.AC BitGo Coindash.io Coinomi CoinsBank Holy Transaction 13

14 Development Risks High level of competition The ecosystem of Kript combines the best experts in one place. Narrow specialization of the market Our niche is altcoins. At this moment, they grow much faster than the rest of the market. We are confident that in the future the altcoins will surpass the major currencies regarding of capitalization. Fund risks We understand the current problems on the market, and we are building an initially decentralized system. Users will trade between each other directly, bypassing the server of the system. This will provide a unique protocol, which we are developing right now. Inflation Inflation is always different depending on the type of crypto assets. But if we talk about the inflation of the market as a whole, in the long term it will tend to zero. Mission Statement We want to create an application for investing in crypto assets. An application, which can use any person in the world. We believe that investment in crypto assets is the foundation of a new, digital economy. We believe in the importance of decentralization. It helps realize the core principles of security and justice. 14

15 Core Team For more than ten years we have been creating financial services for private and corporate clients of numerous banks and brokerage companies in Russia and Singapore. Within the past two years, we created the project My Broker the most successful mobile application for trading on the Russian stock market. We developed a Broker-as-a-service architecture, an open API on the basis of which other applications for private investors in the stock market were launched in Russia: Tinkoff Investments, Source and Simple Invest. All of them influenced the market, completely changing it: during their work, the number of active clients has increased up to 28.5%. We came to the idea to create an application where you can trade, monitor major news and communicate with investors in one place when we started to buy cryptocurrency by ourselves: at those times it was extremely inconvenient and not safe. 15

16 Founders Philip Joslin General Manager ex-eurex Ruslan Smirnov Co-founder, Product Management and Marketing ex-bcs Financial Group Dmitry Firsov Co-founder, Business Development and Legal Issues NWTN-Group Advisers Stephan Dertnig Ex-BCG Alexander Yakovlev National Settlement Depository Matthias Rietig 16

17 Platform Model Ethereum is a Blockchain-based platform for the creation of decentralized applications (Dapps) using smart contracts. Ethereum allows you to register transactions with any assets on the basis of a distributed database of blockage, avoiding the traditional legal procedures for registering contracts. 17

18 KRPT Token Independent investors have already invested in Kript $500 thousand to help us create a beta version. To collect funds for the further development of the platform, we will launch ICO. During ICO, we will release KRPT tokens based on the ERC20 Ethereum Token Standard. KRPT token is an internal currency with a Kript ecosystem. Using KRPT, you can pay for services and transactions. After ICO token will be traded in crypto markets: bitfinex.com, liqui. io, and within an application as well The ICO will have two main purposes: attracting Kript s target audience and financing to ecosystem s development The token sale enables to avoid the traditional methods of attracting money and keep the independence of the project. We believe that the ICO format is the most consistent with Kript s philosophy. Tokens issue Within the framework of ICO, we will issue 100 million KRPT tokens with a nominal value of $0,5. During ICO, 40% of the total issue will be available for purchase. Soft cap during ICO-$2 million, hard cap-$25 million. Investment Capital Required $25 million. Any undistributed tokens left after the ICO will be burned The total number of tokens is limited so that they are protected against inflation. According to the forecast, their cost will grow, as it depends on the number of users: tokens are used by users to work in Kript. 18

19 Tokens usage Experts will receive tokens as a reward for successful forecasts and open access to information about their portfolio and transactions in Kript. Meanwhile, the amount of reward depends on the number of subscribers, the level of reputation, the accuracy of forecasts, and the profitability of the expert s portfolio. To get access to the information from experts users will have to buy tokens. The KRPT token will also be accepted as a commission payment for the transactions and will partially be returned to the makers for the maintenance of liquidity. How will we distribute the tokens? 40% ICO 33.57% Top-managers and founders 11.43% Venture investors 10% Tokens reserved for future payments within the system 3% Experts and advisors 2% Bounty Tokens redemption To redeem tokens, 10% of the sum of all Kript commissions received from operations inside the system will be sent quarterly and annulated afterward. Quarterly reduction of the total volume of tokens will provide a fundamental basis for the growth of their value in the future. 19

20 Where will the money go? All money raised during ICO will be spent on achieving our goals and reaching a leading position in the Asia-Pacific region. Their use will be tied to the project s business indicators and regulated through the mechanisms of external escrow. 60% Customer service and marketing 30% Product development and research 10% Operational and legal support of the Kript ecosystem Roadmap Q The company s registration in Singapore The White Paper s publication kript.io launch Development of the beta version of the application: an informative application without commercial functionality including the sections such as Quotes, News and ICO KRPT token release on the Ethereum Pre-ICO 18/09-18/10 Road show Attraction of advisors and experts 20

21 Clarifying the architecture of Dapp, the technology solutions, and partners to be used in future Further development of application Q The application will have new sections such as Forecasts and experts rating Integration with TOP-5 crypto markets and basic crypto wallets, release of the section Portfolio ICO 19/10-19/11 Launch of a beta version in application stores in English, Japanese and Chinese 1st half of 2018 Release of the main sections of the application based on the comments from users and KRPT token holders Testing of a decentralized p2p-stock-exchange within the application Adding KRPT token into crypto stock exchanges 2nd half of 2018 Decentralization of the main functions of the application (before only wallets are decentralized) Release of the virtual consultant and personal recommendations using artificial intelligence, which processes the events in the blockchain-networks 2019 Active Product Promotion in the APEC Region 21