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09 cointree


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09 cointree

  1. 1. “The Coin Tree is a cloud-based storage, insurance, and payment processing platform for bitcoin that leverages cutting edge transactional security to serve the ever expanding virtual currency community. “ 2 CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY What is The Coin Tree?
  2. 2. Bitcoin? CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY 3 1. A digital commodity created and maintained by a decentralized peer-to- peer network of computers. 2. High-security cryptography ensures that neither Bitcoins can be counterfeited nor transactions reversed so long as honest users control a majority of the network's computing power. 3. The total number of Bitcoins is limited to 21 million. To-date approximately12 million currently have been mined (created). A rapidly growing, digital currency that is supply constrained, avoids direct sovereign control, and is globally accepted. What is
  3. 3. Bitcoin in the News 1. 2. 4 "We believe Bitcoin can become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money transfer providers. As a medium of exchange, Bitcoin has clear potential for growth, in our view.“ David Woo, Head of Global Rates and Currencies Research at Bank of America Merrill Lynch Global Research: [1] "The idea is very exciting. I think having a global currency where you don't have to spend all the money changing your currencies is admirable and whoever is behind bitcoin was brilliant." Sir Richard Branson, CEO of Virgin Galactic: [2] “The potential for disruption is enormous.” “We have elected to put out money and faith in a mathematical framework that is free of politics and human error.” Jeremy Liew, Lightspeed Venture Partners Tyler Winklevoss, Entrepreneur & Venture Capitalist
  4. 4. Vocabulary of Bitcoin  Blockchain Public ledger of all transactions of a cryptocurrency  Cryptocurrency Assets protected by strong cryptography  Private key A private key is a secret piece of data that proves your right to spend bitcoins from a specific wallet through a cryptographic signature.  Public/private key Codes used to validate transfer of cryptocurrency  Signature A cryptographic signature is a mathematical mechanism that allows someone to prove ownership.  Tumbler A method for randomizing cryptocurrency storage  Vault A highly secured form of cryptocurrency storage  Wallet Form of cryptocurrency storage: software, web, etc.  Exchange Environment, often virtual, where crypto currency is traded 5 CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY
  5. 5. •International •Early 20s – Early 40s •Highly educated in underlying technology •Individual consumers Today •International •Ages 18 – 55 •Moderately educated •Individuals and merchants Tomorrow •International •All ages •All educational backgrounds 5 years from now • Users: 1,200,000 Merchants: 40,000 Current Market Size March 19, 2014 6 Customer Profile CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
  6. 6. Bitcoin Growth: As Both Currency And Market Value 3 10787100 12361350 10500000 10700000 10900000 11100000 11300000 11500000 11700000 11900000 12100000 12300000 12500000 Growth From Feb 2013 thru Feb 2014 (Averages 4000 new coins per day) $320,396,185 $14,464,698,057 $6,897,707,715 $- $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 $14,000,000,000 $16,000,000,000 Growth From Feb 2013 thru Feb 2014 (Total Value of Bitcoin In Circulation) CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY Source:
  7. 7. Where is Bitcoin 8 Active Merchants on BitPay & CoinBase1 Value of Bitcoin transactions on 1st Day at TigerDirect 2 Increase from 2012 to 2013 in Merchant Transaction Volumes Using Bitcoin3 Used Today? CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY 1. 2. 3.
  8. 8. Impact on Adoption Large barrier to entry for new users 9 Access Security Storage Distribution The Coin Tree solves all 4 major dilemmas in Bitcoin adoption Poor market delivery Difficult to use storage solutions Underdeveloped technology and protocol Dilemma CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY Issue: TCT Solution: Issue: TCT Solution: Issue: TCT Solution: Issue: TCT Solution: Creating a mobile and globally accepted easy to use platform decreasing the barrier of entry TCT provides vault security though proprietary multi-signature technology TCT provides insured cloud enabled storage as well as cash access to the stored asset First movers advantage will provide a strong marketing launch platform for TCT’s offering
  9. 9. $31mm 10 $ 2.5mm $ 400K $4 mm Comparative Table CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
  10. 10. 11 Secure, Distributed, Next-Gen Wallet Insurable, Verifiable Asset Class Simplify Transactions & Use As Global Currency Value Added Services For Community Growing People, Business, and Bitcoin Together • Proprietary tumbling storage environment • Multi signature insured protection • Mobile transaction processes • Removing barrier to entry for new users The Coin Tree Value Proposition CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
  11. 11.  The Wallet  Secure multi-cryptocurrency cloud system  The Vault  Multi-signature storage and insurance  The Access  Easy liquid access to stored asset through reloadable prepaid cash cards  The Merchant  Global merchant and payment processing solutions 12 The Coin Tree Offering CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
  12. 12. Management Team  Andrew Durgee – CEO  Operational Engineering – Worcester Polytechnic Institute  10 years in digital marketing, project management, and product development  3 Years in Bitcoin technology development  Isaac Waldron – COO  Electrical Engineering – M.S. and B.S. – Worcester Polytechnic Institute  7 years experience in applications engineering and software field testing  3 Years in Bitcoin technology development Board Members  David Baxter  Senior-level Sales and Marketing executive with experience in Payments, Financial Services, Technology and E-Commerce within Fortune 100 and Start-Up organizations. David is currently the VP of Sales, EBPP for ACI Worldwide. 13 Our Team and Board CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
  13. 13.  Elements for a Next Gen Insured Wallet:  Instant Access  Security/Insurance  Mobile Application  Responsive Customer Support  Legitimacy  Multi-Cryptocurrency Support 14 Insured Wallet CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY What is a Wallet? Form of cryptocurrency storage: software, web, etc.
  14. 14.  All customer deposits, whether direct or via an exchange, will be stored within the Vault environment.  Once in the Vault signatures by multiple private keys are required to move BTC.  All BTC stored within TCT Vault will be insured against theft and loss.  Keys are stored in a way that system compromise is easily detected and halted, limiting impact to insurance. 16 CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY Vault
  15. 15. Wallet System March 19, 2014 CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY 18 The Coin Tree Bitcoin Protocol Web Browser Dedicated Client Wallet and Merchant Web Servers Internal Key Management Servers Insurer Key Management Servers Bitcoin Protocol Servers TCT Non-TCT
  16. 16. Solving the cryptocurrency liquidity problem: -Use, Store, Convert to Cash-  Prepaid cash cards  Users have the ability to request reloadable cash cards  Allows for easy access to stored value of bitcoin  Account management  Users will be able to access their account through their mobile device  Users will be able to reload cards from their mobile application from anywhere in the world 19 CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY The Access
  17. 17. TCT Merchant  Payment processing  POS integration  Payment/asset storage  Insurance  Liquidation  Internationally focused March 19, 2014 20 Solutions
  18. 18. Current Merchant March 19, 2014 21 • Current focus on exchange • Not internationally focused • Not usable by average merchants • Difficult sign up process • Not internationally focused • Signup requires application submission • Not internationally focused Competitors
  19. 19. 0 20 40 60 80 100 120 140 Establish source control Wallet architecture Wallet development Wallet QA Launch TCT Project Development Timeline [days] Completed Remaining 22 Development Timeline Summary CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
  20. 20.  Storage  Insurance  Prepaid Cash Card  Card Loading  Card Maintenance  Growth:  Ramp to storing about 25% of existing BTC by Q3 2017 23 Revenue Sources CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY
  21. 21. Consumer Confidence  Current Consumer Confidence Issues:  Lack of consumer confidence in products due to lack of customer BTC domain knowledge creating large barrier to entry for new users.  High profile BTC hacking incidents have tarnished BTC reputation and stifled growth.  TCT Solutions:  TCT will align with insurance companies while building a high profile BoD in order to properly build consumer confidence.  TCT’s unique solution driving both legitimacy and security to the BTC sector will help to grow the user base while providing additional exposure for TCT itself. 25 CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY
  22. 22. Marketing  Current BTC Marketing Issues:  Failure to bring new technology and services through proper channels to public.  BTC start-ups are not properly budgeting for both digital and traditional marketing efforts.  TCT Marketing Solutions:  Using current news outlets hungry for BTC stories as a launch for platform.  Aggressive SEO/SEM strategies mixed with traditional targeted marketing allowing for maximum exposure while securing first movers advantage. 26 CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY