ICO, Starbucks, Kodak,Tokens,Cryptocurrencies Risk Adjusted returns Bitcoin Rippe

1. INITIAL COIN OFFERING ( ICO)
AN ANALYSIS FOR INVESTORS AND PLCs.
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2. WHAT IS AN INITIAL COIN OFFERING?
• ICOs create Tokens/ Cryptocurrencies
• Raise capital - for existing or new firms
• Create “glue” for community - deeper stronger relationships
• Investor profile - Mid 20s to 40s, £00s not £000s, increasingly
Institutions
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3. HOW ICOS HAVE BEEN SUCCESSFUL !
SOURCE COIN MARKETCAP
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4. DIFFERENCE BETWEEN ICO AND
TRADITIONAL FUND RAISING
• Issue equity-Dilute existing shareholders
• Issue debt-Need to repay interest and principal
• Able to involve staff, clients and suppliers - loyalty programs
on USA $300Billion p.a. eg -Air-Miles, Ratuken Token $9Billion
( Japanese rival to Amazon,) see https://techcrunch.com/2018/02/27/rakuten-will-roll-its-9b-
loyalty-program-into-a-new-blockchain-based-cryptocurrency-rakuten-coin/
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5. WHAT’S REQUIRED TO MAKE A SUCCESSFUL
ICO?
• Clarity - why you need a Token and not just issue shares
• White paper - proposition
• Fund raising campaign – HNW or public offer
• Advisors - social media, technical ,monitoring
• Tax and legal help – embrace regulation
• ER20 smart contract - swap Bitcoin, Ether or Fiat to a Token
• Vibrant community
• Good luck - timing
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6. SIZE OF TOKEN $433 Billion
MARKET V EQUITIES $70 Trillion
SOURCE BLOMBERG AND COINMARKETCAO
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7. HOW TO IMPROVE AN ICO’s SUCCESS
• Strong reputable board – Many PLCs have this
• Strong business plan - clear USP
• Avoid being a security - fines, prison, hand back the cash
• Compliance – AML/KYC 100% required
• Secondary market - reason token will appreciate so POST ICO
marketing vital
• Passionate community- an on line database for Mkt research,
great PR for a quoted Co eg Glance price up 100%
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8. ICOs KILL VCs IN 2017 – RAISING $5+
BILLION
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9. DIFFERENT COUNTRIES’ VIEWS
• .UK -”permanently raise GDP by as much as 3%, due to
reductions in real interest rates, distortionary taxes, and
monetary transaction costs”. Bank of England
• Japan accepts Bitcoin as legal form of payment
• South Korea: Bitcoin can coexist with fiat currencies
• Australia will treat Bitcoin just like money-wants to regulate
Crypto exchanges
• Canada and USA restrictions on ICOs - Howey test
• Zug - Crypto valley
• Abu Dhabi – only want security tokens
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10. ICOs HAVE BEEN LAUNCHED GLOBALLY
SOURCE ELEMENTUS.IO
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11. TOKENS - A NEW ASSET CLASS
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12. CORRELATION OF DIFFERENT ASSETS?
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13. DID YOU EVER THINK YOU WOULD USE
THIS?
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14. HOW TO CALCULATE RISK-ADJUSTED
RETURNS
Sharpe ratio = Growth minus Risk-
Free Return/Standard Deviation
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15. HOW TOKENS IMPROVE YOUR RISK ADJUSTED
RETURNS
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16. LOOK OUT - FUNDS ARE ON THEIR WAY!
Quoted US Stocks - 4,033
US Mutual Funds - 9,500
Quoted UK Stocks - 1,782
UK Mutual funds - 2532
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17. PLCs COMMUNITY IS KEY FOR GROWTH
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 According to Bain and Company, a 5% increase in customer retention
can increase a
 company’s profitability by 75%!
 Gartner Group statistics tell us that 80% of your company’s future
revenue will come
 from just 20% of your existing customers.
 According to Marketing Metrics it’s far easier to (about 50% easier) sell
to existing
 customers than to brand new prospects.

18. QUOTED FIRMS EMBRACE ICOs
Source: WWW.CNBC.COM/2018/01/26/
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Starbucks Chairman said
”Starbucks is not YET forming
a digital currency…I bring
this up as we think about the
future of our company and
the future of consumer
behavior."

19. WHAT MAY BE HOLDING YOU FROM BUYING
TOKENS?
• Knowledge - what are they, how they work?
• Access - opening a Crypto wallet is HARD, Markets trade 24/7,
arbitrage, Exchanges suspended…..
• Volatility- convert % of Token raise to Fiat
• Need for user-friendly App - to drive adoption
• Regulatory guidance – launch Token within existing securities
regulations
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20. POTENTIAL STRUCTURE
•PLC
• Managed by existing
directors
• Owned by shareholders
• Focus – on products and
services
• Possible new shareholders
•Token Coin
foundation
• Managed by independent
trustees
• Run for the Token holders
• Dedicated – marketing for
PLC
• Digital loyalty scheme – sell
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21. CONCERNS
• Shareholder and token holder conflicts - use a foundation
• Reputational damage –PLC not owners, Token Co is
independent
• Regulation - work with in existing SECURITIES regulations
• Ability to create Digital Loyalty scheme/ raise fresh capital with
no intangible liabilities
• Token Coin could bid for PLC creating in effect co-operative ie
owned by those that use it
• Clarity of what underpins token – warrants/options align PLC
and Token Coin interests
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22. TOKEN ADVANTAGES FOR A QUOTED PLC
• Digital loyalty scheme to bind an organisations community
• Save PLC marketing costs as they are borne by Token Co
• No shareholder dilution, not extra debt for the PLC
• PLC outsources its marketing department which in time may
offer its service to other Cos
• Potential source of new shareholders – ICOs attract different
buyers who may buy shares in the PLC- eg Kodak 40k
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23. THANK YOU
Jonny Fry
Chairman Lifesdna Ltd/ CEO
Teamblockchain Ltd
Twitter: jonnyfry175