Trakx.io is developing a platform to create, distribute and facilitate the trading of Crypto Trackers. Crypto
Trackers, also called Coin Traded Indices (CTIs), are tokens which significantly reduce the complexity
and fees associated with the setting of long and short positions on various cryptocurrency assets.
Users will be able to trade onto the platform digital tokens that are positively or negatively correlated to the
tracked underlying crypto assets. Trakx.io will progressively offer a wide panel of CTIs which will include,
non-exhaustively, inverse CTIs, levered CTIs, basket CTIs and stablecoins.
This whitepaper outlines the core elements of Trakx.io, including the functioning of the platform and the
Coin Traded Indices (CTIs).
Growing investors’ interest in Blockchain and cryptocurrencies… Since the introduction of Bitcoin in 2009, blockchain and cryptocurrencies have unlocked significant value. Despite the sheer amount of use cases for these technologies, speculation has remained the primary driver of their adoption. Cryptocurrencies have made stellar gains so far, up more than 1,800% in 2017 in the case of Bitcoin. There are now over 1,500 cryptocurrencies traded on exchanges with a total market capitalization at around $300bn. This noticeable speculation has led to the creation of successful exchanges and to an increased sophistication of trading techniques. That being said, due to limited interest from institutions and regulatory issues, cryptocurrencies investors have not yet been able to fully benefit from off-chain financial innovations. … that has yet to benefit from off-chain financial innovations Exchange Traded Funds (ETFs) are a great example of innovative products that are yet to find their ways into the blockchain ecosystem. ETFs are tradable securities that track an index, commodity, bond or a basket of assets like an index fund. It is a type of fund that owns the underlying assets and divides the ownership of those assets into shares. With higher liquidity and lower fees than mutual funds, ETFs have become an attractive alternative for individual and institutional investors. The growth of the ETF industry continues to defy gravity: according to Ernst & Young, global ETFs net assets have grown from $0.7 trillions in 2008 to reach an estimated value of $4.4 trillions in 2017 (a cumulative average growth rate of 20.2% over the period), and are forecasted to grow at a similar pace and reach $7.6 trillions in 2020. If the ETF industry is to fulfil its undoubted long-term potential, it will also need to meet the ever changing investors' needs
ETF investors have demonstrated an appetite for niche products The scope of products in the traditional ETF market has historically been mostly confined to long products. These instruments are essentially designed to appeal investors wishing to have some exposure to composite indices, countries and sectors. That said, ETFs have recently started to become increasingly differentiated products. According to a survey sponsored by Blackrock and conducted by Cerrulli Associates, investors have expressed a strong interest in niche ETFs that would provide both a differentiated offer and a different performance history. Trakx.io will typically target this market.
Which underlines a large potential market for Crypto Trackers
Looking at the US equity ETFs penetration as a percentage of all listed US equity, one can infer that crypto trackers
assets under management (AUM) should hover around $24bn. We believe this is a suitable benchmark given the
maturity and sophistication of the crypto market, which is more comparable to the US equity market than the global
one. Basing ourselves on the trading volume of US ETFs compared to US Stocks, we can equally infer the potential
annual trading volumes of crypto trackers, which should amount to about $3,000bn.
Tech Development (40%): 40% of the funds will be used to fund capital expenditures related to platform development and CTI expansion. These will notably be used to build the exchange, the user interface, and the various initial APIs linked to our platform. SG&A (20%): 23% of the funds will be used for Sales, General and Administrative costs, which includes building and maintaining a team of Sales (to pitch institutional investors), advertising of our products, and various events we will take part in. Product Development (15%): 15% of the funds will be used to develop and launch our various CTIs as per our roll-out plan. Some complex products may need to enter into partnerships with other companies, as well as to find and sign agreement with counterparties. In addition, we will also keep a close eye on the market and keep exploring new creative trackers to build and structure. Platform Marketing (15%): 15% of the funds will be used for promotion and marketing purposes. Promotion and marketing will take place both online (community management, advertising, social and viral marketing, press) and offline (conferences, meetups). 33 Tech Development 40% SG&A 20% Product Development 15% Platform Marketing 15% Legal & Auditing fees 5% Exchange listings 3% Data Vendors 2% Trakx, One-stop shop for Crypto Trackers Use of Proceeds Legal & Auditing fees (5%): 5% of the funds will be used to pay for a reputable audit firm (Big 4). The mission of the audit firm will be to audit the smart contract corresponding to the creation of the TKX (ERC20), in addition to the smart contracts of the Crypto Trackers. We will also have recourse to further legal advices in order to get both our exchange and trackers strictly regulated Exchange Listings (3%): 3% of the funds will be allocated to the payment of the listing fees of Trakx.io utility token (TKX) on key cryptocurrency exchanges (further details will be published over time). Data vendors (2%): 2% of the funds will be used to pay for data providers and data vendors, notably third-party Indexes providers. 34 Trakx, One-stop shop for Crypto Trackers Regulation 35 Countries of establishment Trakx.io will be based in Malta, with operations in France and United Kingdom, hence benefitting from European regulations and market. The company plans to become a regulated exchange in Europe (MTF) and North America (ATS). Risk of requalification of CTIs The current cryptocurrency and token market is characterised by a lack of regulation and a certain flexibility from various regulators. However, Trakx.io believes that CTIs should be deemed to be security tokens. This stems from the fact that they can be considered as an investment contract where the main use-case, and the reason for the contributors to buy the tokens, is the anticipation of future profits in the form of price appreciation. Thus, the firm will take all necessary steps to ensure that Crypto Trackers will be fully compliant within the jurisdictions where it will operate. A regulated exchange Trakx.io aims to become a Multilateral Trading Facility (MTF) in Europe and an Alternative Trading System (ATS) in North America, in addition to being compliant with other jurisdictions. These are alternatives to the traditional stock exchanges where a market is made in securities. MTF and ATS are self-regulated exchanges which can allow the trade of security tokens.
Growing investors’ interest in Blockchain and cryptocurrencies… Since the introduction of Bitcoin in 2009, blockchain and cryptocurrencies have unlocked significant value. Despite the sheer amount of use cases for these technologies, speculation has remained the primary driver of their adoption. Cryptocurrencies have made stellar gains so far, up more than 1,800% in 2017 in the case of Bitcoin. There are now over 1,500 cryptocurrencies traded on exchanges with a total market capitalization at around $300bn. This noticeable speculation has led to the creation of successful exchanges and to an increased sophistication of trading techniques. That being said, due to limited interest from institutions and regulatory issues, cryptocurrencies investors have not yet been able to fully benefit from off-chain financial innovations. … that has yet to benefit from off-chain financial innovations Exchange Traded Funds (ETFs) are a great example of innovative products that are yet to find their ways into the blockchain ecosystem. ETFs are tradable securities that track an index, commodity, bond or a basket of assets like an index fund. It is a type of fund that owns the underlying assets and divides the ownership of those assets into shares. With higher liquidity and lower fees than mutual funds, ETFs have become an attractive alternative for individual and institutional investors. The growth of the ETF industry continues to defy gravity: according to Ernst & Young, global ETFs net assets have grown from $0.7 trillions in 2008 to reach an estimated value of $4.4 trillions in 2017 (a cumulative average growth rate of 20.2% over the period), and are forecasted to grow at a similar pace and reach $7.6 trillions in 2020. If the ETF industry is to fulfil its undoubted long-term potential, it will also need to meet the ever changing investors' needs
ETF investors have demonstrated an appetite for niche products The scope of products in the traditional ETF market has historically been mostly confined to long products. These instruments are essentially designed to appeal investors wishing to have some exposure to composite indices, countries and sectors. That said, ETFs have recently started to become increasingly differentiated products. According to a survey sponsored by Blackrock and conducted by Cerrulli Associates, investors have expressed a strong interest in niche ETFs that would provide both a differentiated offer and a different performance history. Trakx.io will typically target this market.
Which underlines a large potential market for Crypto Trackers
Looking at the US equity ETFs penetration as a percentage of all listed US equity, one can infer that crypto trackers
assets under management (AUM) should hover around $24bn. We believe this is a suitable benchmark given the
maturity and sophistication of the crypto market, which is more comparable to the US equity market than the global
one. Basing ourselves on the trading volume of US ETFs compared to US Stocks, we can equally infer the potential
annual trading volumes of crypto trackers, which should amount to about $3,000bn.
Tech Development (40%): 40% of the funds will be used to fund capital expenditures related to platform development and CTI expansion. These will notably be used to build the exchange, the user interface, and the various initial APIs linked to our platform. SG&A (20%): 23% of the funds will be used for Sales, General and Administrative costs, which includes building and maintaining a team of Sales (to pitch institutional investors), advertising of our products, and various events we will take part in. Product Development (15%): 15% of the funds will be used to develop and launch our various CTIs as per our roll-out plan. Some complex products may need to enter into partnerships with other companies, as well as to find and sign agreement with counterparties. In addition, we will also keep a close eye on the market and keep exploring new creative trackers to build and structure. Platform Marketing (15%): 15% of the funds will be used for promotion and marketing purposes. Promotion and marketing will take place both online (community management, advertising, social and viral marketing, press) and offline (conferences, meetups). 33 Tech Development 40% SG&A 20% Product Development 15% Platform Marketing 15% Legal & Auditing fees 5% Exchange listings 3% Data Vendors 2% Trakx, One-stop shop for Crypto Trackers Use of Proceeds Legal & Auditing fees (5%): 5% of the funds will be used to pay for a reputable audit firm (Big 4). The mission of the audit firm will be to audit the smart contract corresponding to the creation of the TKX (ERC20), in addition to the smart contracts of the Crypto Trackers. We will also have recourse to further legal advices in order to get both our exchange and trackers strictly regulated Exchange Listings (3%): 3% of the funds will be allocated to the payment of the listing fees of Trakx.io utility token (TKX) on key cryptocurrency exchanges (further details will be published over time). Data vendors (2%): 2% of the funds will be used to pay for data providers and data vendors, notably third-party Indexes providers. 34 Trakx, One-stop shop for Crypto Trackers Regulation 35 Countries of establishment Trakx.io will be based in Malta, with operations in France and United Kingdom, hence benefitting from European regulations and market. The company plans to become a regulated exchange in Europe (MTF) and North America (ATS). Risk of requalification of CTIs The current cryptocurrency and token market is characterised by a lack of regulation and a certain flexibility from various regulators. However, Trakx.io believes that CTIs should be deemed to be security tokens. This stems from the fact that they can be considered as an investment contract where the main use-case, and the reason for the contributors to buy the tokens, is the anticipation of future profits in the form of price appreciation. Thus, the firm will take all necessary steps to ensure that Crypto Trackers will be fully compliant within the jurisdictions where it will operate. A regulated exchange Trakx.io aims to become a Multilateral Trading Facility (MTF) in Europe and an Alternative Trading System (ATS) in North America, in addition to being compliant with other jurisdictions. These are alternatives to the traditional stock exchanges where a market is made in securities. MTF and ATS are self-regulated exchanges which can allow the trade of security tokens.
Không có nhận xét nào :
Đăng nhận xét