Token-as-a-Service: Annual Report

Covering the period from April 27th, 2017 to April 30th, 2018

TaaS Community Address

Dear TaaS Community!

Looking back at 2017, the TaaS Community (TaaS, its members/token owners, its developers, and all those dedicated to making TaaS a success) is very proud of what we have all created. Now, standing at the start of 2018 and looking forward into the future, we are equally excited to explore and leverage the new opportunities and challenges which crypto, blockchain, and related technologies are unleashing on a global scale. It is the TaaS Community’s firm belief that the evolution and development of these technologies will not only benefit the TaaS Community, but will be a global force for good as well.

A key factor in taking advantage of these ongoing changes is staying current with, and sometimes even one step ahead of, the rapidly evolving global regulatory environment. As everyone seriously involved in crypto, blockchain, and related technologies is aware, there is a world-wide conversation forming on the question of how to regulate these new technologies and platforms. Governments are, on one hand, generally open to the idea that crypto, blockchain and related technologies hold promise which should be supported and advanced by national regulators. No country wants to hobble some of the most promising technologies of the future and then be forced to sit back while others race ahead. On the other hand, the very real negative actions of some bad actors have harmed a great many innocent victims. This has created at least the perceived need for heightened regulator vigilance and, sometimes, new and stricter regulations. As can be expected in a diverse world wrestling with something new, sometimes different jurisdictions arrive at different conclusions on how to best regulate this area. And, as a result, they sometimes develop different, and sometimes contradictory, regulatory schemes.

Despite the challenges of operating globally in this uncertain and rapidly evolving regulatory environment, the TaaS Community intends to remain a “good global citizen” and to proactively adapt to developments as they arise and their impacts become clearer. Therefore, by way of example and not of limitation, and as may be applicable now and in the future, the TaaS Community reserves the ongoing right to modify: (i) the TaaS technical, business, and financial model(s), (ii) the TaaS token design(s), (iii) any rights, responsibilities, obligations, etc. related to TaaS, the TaaS token(s), and TaaS membership, and (iv) the distribution, redistribution, conversion, suspension, and retirement of TaaS tokens. The TaaS Community also reserves the ongoing right to vet past, present and future TaaS token owners/members in connection with, by way of example and not of limitation, and as may be applicable now and in the future: (i) current and evolving standards of anti-money laundering (“AML”), (ii) know your customer (“KYC”), qualified (accredited) investor status, and the like. In connection with this, past, present and future, TaaS token owners/members may be requested and directed to provide certain information in order to ensure compliance with all applicable government regulations.

The TaaS Community can rest assured that all of these actions will be conducted in a deliberate and legal manner with the overall interests of the TaaS Community, namely being in compliance with evolving regulatory requirements having first priority. In no event will any action take place for the purpose of benefiting TaaS (the entity) itself, or for the purpose of benefiting TaaS’ founders or internal team-members.

Thank you for working with us as we continue to develop the amazing TaaS platform in 2018 and beyond.

Yours sincerely,
Founders
Token-as-a-Service

CONTENTS

  • Token-as-a-Service
  • Transparency
  • Security
  • Summary of Operations
  • Annexes

TOKEN-AS-A-SERVICE

Basic Information

Incorporated in Singapore in February of 2017, Token-as-a-Service (TaaS) is a closed-end tokenized investment fund actively contributing to the development of the blockchain ecosystem. Owners of the TAAS token capitalize on the rise of blockchain markets without dealing with the hurdles, risks and technical barriers associated with owning, transferring and trading cryptocurrencies and tokens.

As of April 30th, 2018, TaaS maintains a team of 25 experienced traders and developers.

TaaS encourages members of the public to join its official information channels:

TAAS Token Sale

TaaS concluded its 1 month-long token sale event on April 27th, 2017. The results were independently verified by a world-renowned accounting firm, Grant Thornton: the sale attracted 3,942 participants who contributed 7,569,371.61 USD(T) equivalent.

As a result of the sale 8,146,000.78 tokens were distributed, while the rest of the initially minted 101 million tokens were burnt. The price of the tokens (including bonuses) during the sale ranged from 0.8 to 1.0 USD(T)/TAAS.

Summary of the Service

TAAS tokens are built on a profit-sharing Ethereum smart contract, which offers the token owners 50% of the quarterly earnings. 25% of the capital gains are retained in order to increase the capital pool without requiring additional token sales. The premise is that the gradual increase in the net asset value increases the token value over time and the token is therefore explicitly tied to the performance of its parent structure.

TRANSPARENCY

In order to provide transparency and visibility of its activities, TaaS launched and maintains the in-house technology known as the Cryptographic Audit (CA), a set of monitoring tools accessible by any member of the public who currently owns or is considering the purchase of TAAS tokens.

Cryptographic Audit layout (source: taas.fund/audit)

The CA is fine-tuned to provide its users with up-to-date information on the underlying assets held on crypto wallets and trading accounts on exchanges/platforms, details of the early-stage contributions and other assets with limited liquidity, as well as the list of wallets used by TaaS.

Wallets (source: taas.fund/audit)

With positive feedback from the TaaS Community, the company is working hard to resolve scaling issues and provide a turnkey transparency solution to its partners.

SECURITY

Storage

In order to ensure the safety of the underlying assets, TaaS utilizes secure wallets including multi-signature hardware storages, as well as in-house and trusted third-party software solutions.

The list of designated storages used by TaaS is provided below.

  1. 3BYv4Ny1xx6AWyGqJA19bvYCLcUiHPgHrH — BTC
  2. 32hNXq9rMQYvFYuLt7maWYUNb6TVa8kFkV — BTC
  3. 1P8xirj6Ycxn23zCSBgUTuH4HxmfjcrHYp — BTC
  4. 143znes6fHtdG6sHEcwY4roanwPdawneki — BTC
  5. 16ZTUZ2v25VWWgQhSKX8kUMGazeFip4a3o — BTC
  6. 1Mxr6cFkuURpxgtf2sZhnp3xqUPQ3LDAJH — BTC
  7. 0xecd7da67e6563bbddfc2ddff9ba2632c721af181 — ETH, ERC-20
  8. 0xC78954e7E3b0303a0eB75544e794764c418B825A — ETH, ERC-20
  9. 3BYv4Ny1xx6AWyGqJA19bvYCLcUiHPgHrH — BCH
  10. 1CoboR8rMAYYpLsjNxycvWerq7BsC7xjtn — BCH
  11. 32hNXq9rMQYvFYuLt7maWYUNb6TVa8kFkV — BCH
  12. 3KsLnp3MKgaBaxpBc6V7iuNDxbfsH4i6bH — USD(T)

Quarterly Payouts

Processing of the quarterly payouts is carried-out by using Ethereum-based smart-contracts to provide top level security to customers of the service.

SUMMARY OF OPERATIONS

Performance Summary

During the reporting period based on its market assessment TaaS effectively utilized a number of active portfolio management tools and strategies including risk-weighted diversification into strategic asset classes, rebalancing, intra-day trading and taking swing positions at cryptocurrency exchanges. A substantial part of TaaS efforts was focused on deal origination and participation in token sales.

As a result of the four quarters of operations the net asset value was increased by over 23 million USD(T) equivalent, and total capital gains exceeded 32.5 million USD(T) equivalent, bringing an aggregated 780% annual growth rate.

Performance Summary

In its first year TaaS outperformed two target benchmarks including Bitcoin, by 60%, and the Big-2 (Bitcoin and Ethereum), by 43%.

Portfolio Overview

As of April 30th, 2018, the share of BTC, ETH and USD(T) in the portfolio approached 37%, while the share of other tradeable cryptocurrencies (including Singularity.net AGI, Kyber Network KNC, iExec RLC, Raiden Network RDN, Qlink QLC, and others) equaled 44% (13.1 million USD(T) equivalent).

As of the reporting date, fifteen (15) projects are in their early contribution stage (including Vimana, FuzeX, Solid Opinion, Yggdrash and others), and the relevant assets are vested or have limited liquidity.

Rebalancing & Historical Portfolio Snapshots

TaaS Started its operational activity with Bitcoin, Ethereum and a minor share in Tether (USDT).

The next quarterly snapshot of TaaS balances included major positions in less volatile assets (e.g. USDT), BTC and ETH (around 27%), strategic allocations to Bancor BNT and TenX PAY, and others.

Major allocations in the final Q2 TaaS portfolio snapshot included an over 37% share in Bitcoin and Ethereum, 10.6% with the less volatile cryptocurrencies, and approximately 13% to Salt Lending Token, TenX PAY and Bancor BNT.

During its third quarter of operations (Nov 2017 — Jan 2018) TaaS rebalanced the portfolio, with a number of previously conducted contributions gaining liquidity (Icon ICX, Etherparty FUEL etc.), as well as exiting several previously held positions. The major allocations in the end-Jan 2018 snapshot included ETH (36.1%), BTC (14.7%), EOS (5.3%) and Bancor BNT (4.5%)

TaaS Contributions to TGEs and Token Sales Events

During its first year of operations TaaS actively developed and utilized its in-house due diligence and deal origination expertise, having screened over a thousand prospective blockchain startups in their early stages, around 140 of which were shortlisted. After comprehensive due diligence on the projects’ financial, technical and legal aspects etc., a total of 35 selected deals were executed since April 2017 with the aggregate amount contributed exceeding 10 million USD(T) equivalent.

TaaS also participated in the d10e Conference startup selection events, including Pitch Competitions held in Kiev, Ukraine (September 2017), Davos, Switzerland (November 2017), Bucharest, Romania (December 2017), thus entering the token sales of the top competitors (InsurePal, Persona, theMINE, Native Protocol, OSA Hybrid Platform, Neuromation, and The Hacken Ecosystem).

TaaS Contributions

Trading Operations

In order to achieve its strategic mid- to long-term goals and bring sustainable and adequately risk-weighted returns during its first year of operations, the TaaS team applied a combination of trading strategies and techniques, including day-trading, position-trading and swing-trading powered by the in-house and third-party intel and evaluation instruments.

Apart from the OTC deals and early stage entries, accounts at major cryptocurrency exchanges were used to widen market reach, diversify in strategically important assets or exit positions. The number of asset allocations in the portfolio ranged from 15–20 to 55–60 depending on the global market outlook throughout 2017–18.

Lending

A minor part of the portfolio was used for lending activities on cryptocurrency exchanges in order to bring in a secure fixed income.

Arbitrage and Algorithmic Trading

In order to diversify to low-risk activities, TaaS continued developing and testing a number of arbitrage and algorithmic trading strategies. Some of the strategies passed the pre-scaling tests and were deployed.

TAAS Token

As of the day of this Report, TAAS tokens were listed on the following exchange/platforms: Liqui, HitBTC, Bancor Protocol, Livecoin, CoinExchange, EtherDelta and Orderbook.

In accordance with the TAAS token model, 50% share of the capital gains equivalent to 16.3 million USD(T) or 2 USD(T) per token was allocated to the token owners and distributed in the form of Ethereum (a total of 30.6 thousand ETH) in August 2017, November 2017, February 2018 and May 2018 respectively; and 25% of the gains equivalent to 8.1 million USD(T) were retained in the active portfolio.

As of April 30th, 2018, the token price equaled an equivalent of 5.5 USD(T)/TAAS, providing an approx. 500% ROI to the participants of the Token Sale, and a market capitalization of over 45 million USD(T) equivalent.

TAAS Token Price to Tether (Source: https://www.tradingview.com/)

Annex 1

TaaS Financial Statements — Balance Sheet

Covering Period from April 27th, 2017 to April 30th, 2018

USD(T) Equivalents
USD(T) Equivalents

ANNEX 2

TaaS Financial Statements — Profits & Losses

Covering Period from April 27th, 2017 to April 30th, 2018

TaaS Profitability Indicators

Covering Period from April 27th, 2017 to April 30th, 2018

TaaS-to-Market Performance

In its first year TaaS outperformed two target benchmarks including Bitcoin, by 60%, and the Big-2 (Bitcoin and Ethereum), by 43%.