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10 Things to Look for in a Token Project - June 2018 @ Money Conference

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Edith Yeung overview on 10 Things to Look for in a Token Project at June 2018 @ Money Conference Dublin Ireland.

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10 Things to Look for in a Token Project - June 2018 @ Money Conference

  1. 1. How to Evaluate a Token Project Strategies & Tactics Edith Yeung June 2018
  2. 2. Edith YeungSelected by Inc's Magazine as one of the Silicon Valley’s investors you must know, Edith Yeung is the head of 500 Startups Greater China and partner of 500 Mobile Collective Fund. Edith invested in over 40 mobile, VR, AR, AI and machine learning startups, including Hooked - #1 reading app for millennium, DayDayCook - #1 Asian Cooking media and platform, Fleksy (acquired by Pinterest), Human (acquired by Mapbox), AISense, and many more. Before 500, Edith was the head of marketing for Dolphin Browser, a Sequoia-backed mobile browser with over 150 million installs worldwide. Edith also worked with many Fortune 500 companies such as Siebel, AMS, AT&T Wireless and Autodesk. Edith Yeung | @edithyeung | edith.co
  3. 3. Disclaimers • This session is purely for knowledge sharing • I cannot give you any investment or legal advice ☺. • I am not a lawyer or financial advisor. • Token investments are extremely risky • Please DO NOT invest in anything you don’t truly understand and cannot afford to lose
  4. 4. Blockchain by the Number (as of June 12 2018) • Total market capitalization of crypto currencies hovers around $301 billion. • Bitcoin is valued at ~$117 billion. Bitcoin makes up ~39.1% • Initial coin offerings have exploded in popularity, closing in on $14.6B+ in funding in 2017 alone. • Over 1600 Crypto tokens and 10K Crypto markets • If you had invested $100 in Bitcoin in 2011 that Bitcoin would be worth over $2.5M today.
  5. 5. ICOs Raised Over $5B across ~800 Blockchain projects in 2017. Equity Investors Deployed $1B in 215 Deals https://www.cbinsights.com/research/blockchain-vc-ico-funding/
  6. 6. 60%+ Consumer Focused Tokens. 30%+ Infrastructure and Platform Focused Tokens. http://tomtunguz.com/saas-and-blockchain/
  7. 7. Top 10 Crypto Currencies (May 2018) 1.  Bitcoin 2.  Ethereum 3.  Ripple 4.  Bitcoin Cash 5.  EOS 6.  Litecoin 7.  Stellar 8.  Cardano 9.  TRON 10. IOTA Source: https://coinmarketcap.com/
  8. 8. Top 10 Crypto Exchanges (June 2018) 1.  OKex 2.  Huobi 3.  Binance 4.  Bitfinex 5.  Bithumb 6.  Upbit 7.  Lbank 8.  HitBTC 9.  Bibox 10. GDAX Source: https://coinmarketcap.com/
  9. 9. Top 20 Most Active Crypto Funds (May 2018) • 500 • Andreessen Horowitz • Arrington XRP Capital • BlockTower • Blockchain Capital • Danhua Capital • Dekrypt Capital • FBG Capital • Fenbushi • Huobi Capital •  Hashed •  INBlockchain •  Kinetics Capital •  Metastable •  Multicoin •  Node Capital •  Okex Capital •  Pantera Capital •  Polychain •  ZhenFund
  10. 10. What kind of investor do you want to be?
  11. 11. 10 Things to Look for in a Token Project
  12. 12. 10 Things to Look for in a Token Project 1.  Purpose - what is the purpose of the project and token. Do you really need blockchain for this? 2.  Competitive Analysis - are there similar projects out there already? 3.  Team – is this team legit? 4.  Technology – does this blockchain solution make sense? 5.  Community – do they have strong community support? 6.  Token allocation – what is their token allocation? 7.  Milestone & Timeline – what is the project timeline? 8.  Financing – what is the total target raised? What is the cap? Any lockup? 9.  Social proof – who else are investing (investors) and involved (advisors)? 10.  Legal – do they have all the financial and legal documentation ready to go?
  13. 13. 1. What is the propose of this project and token?
  14. 14. Many Strange, Weird, Bullshit Tokens Out There… Source: Top 10 Weirdest Coinhttps://www.forbes.com/sites/laurashin/2017/07/10/cryptos-in-wonderland-12-of-the-weirdest-wackiest-coins/#6eaf8e2f2a70
  15. 15. Ether is a necessary element — a fuel — for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations. Ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources).
  16. 16. Lumen is the built-in currency for the Stellar network which serves two purposes: •  Lumens play a small anti-spam role. Each transaction has a minor fee—0.00001 lumens— associated with it. This fee prevents users with malicious intentions from flooding the network. The Stellar network requires all accounts to hold a minimum balance of 1 lumen to ensures that accounts are authentic and maintain a seamless flow of transactions. •  Lumens may facilitate multi-currency transactions and trades between pairs of currencies between which there is not a large direct market, acting as a bridge.
  17. 17. 2. Are there similar projects out there?
  18. 18. 3. Is this team legit?
  19. 19. Are They Crypto Native or Crypto Want-to-be?
  20. 20. How to Validate a Crypto Team? Linkedin Twitter Slack Reddit Github Website Crunchbase YouTube Slideshare Line Telegram Medium Dribble Facebook Baidu Baike Youku Tudou QQ Video Angellist Kakao Talk
  21. 21. 4. Does this blockchain solution make sense? Do you really need blockchain for this?
  22. 22. 3. Awesome
  23. 23. • Inner workings of the protocol and application • How does the whole system works • How the token will be used within the system • Development roadmap • Token allocation
  24. 24. Original Bitcoin Whitepaper - https://bitcoin.org/ bitcoin.pdf
  25. 25. List of Whitepapers You Should Read • Bitcoin - https://bitcoin.org/bitcoin.pdf • Ethereum - https://github.com/ethereum/wiki/wiki/White-Paper • 0x - https://0xproject.com/pdfs/0x_white_paper.pdf • Stellar - https://www.stellar.org/papers/stellar-consensus- protocol.pdf • Filecoin - https://filecoin.io/filecoin.pdf • OmiseGO - https://cdn.omise.co/omg/whitepaper.pdf • Qtum - https://qtum.org/en/white-papers • Nebulas - https://nebulas.io/docs/NebulasTechnicalWhitepaper.pdf
  26. 26. 5. Do they have strong community support?
  27. 27. 6. What is the token allocation?
  28. 28. Super Clear Token Allocation and Use of Proceeds
  29. 29. Super Clear Token Allocation and Use of Proceeds
  30. 30. 7. What is their milestone and timeline?
  31. 31. 8. Financial terms - what is the total target raised? What is the cap? Any lockup?
  32. 32. 10 Financial Questions You Must Ask for All Token Projects 1.  What is the total amount raise 2.  What is the total percentage of token are you selling 3.  What is the total cap 4.  What are the level of discounts and lockup timing 5.  When will Testnet and Mainnet launch? 6.  Did you raise equity? 7.  Is there geography restriction? 8.  What is your legal entity setup & structure? 9.  How are you going to spend on dollar amount raised? 10.  Will you keep your funds in ETH, BTC or USD?
  33. 33. 9. Who else are investing (investors) and involved (advisors)?
  34. 34. 10. Do they have all the financial and legal documentation ready to go?
  35. 35. Super Clear with Financial & Legal stuff… •  Currencies accepted (BTC, ETH) •  Clear “Know your Customer” (KYC) process •  Clear bonus program or discount program with lock up policy •  Clear timeline and duration of the offering •  Clear geo-fencing criteria (does not accept US investors) •  Minimal and maximum token investment size •  Will you be using a SAFT? •  Are you geo-fencing the offering? •  Are you setting up a foundation to be a steward of the token?
  36. 36. Scam Alert • Celebrity advisors and endorsements • More advisors than team members • Ask you for private keys over email or Twitter • Fake websites
  37. 37. 10 Things to Look for in a Token Project 1.  Purpose - what is the purpose of the project and token. Do you really need blockchain for this? 2.  Competitive Analysis - are there similar projects out there already? 3.  Team – is this team legit? 4.  Technology – does this blockchain solution make sense? 5.  Community – do they have strong community support? 6.  Token allocation – what is their token allocation? 7.  Milestone & Timeline – what is the project timeline? 8.  Financing – what is the total target raised? What is the cap? Any lockup? 9.  Social proof – who else are investing (investors) and involved (advisors)? 10.  Legal – do they have all the financial and legal documentation ready to go?
  38. 38. Crypto future is really bright…
  39. 39. edith@500startups.com @edithyeung http://www.edith.co/#newsletter Follow me at …

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