Token-as-a-Service: Q4 Report

Covering the period from February 1st, 2018 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 apples 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 — Brief Info
  • Summary of Operations
  • Annexes

Token-as-a-Service — Brief Info

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:

Summary of Operations

1. Transparency and Security

a. Cryptographic Audit

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.

b. Security

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

Utilizing Ethereum-based smart-contracts allows TaaS to securely process the quarterly payouts.

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)

2. TaaS Token Sale Event

TaaS concluded its token sale on April 27th, 2017 after allowing the public to participate over a 30-day period. The results were independently audited by Grant Thornton, a world-renowned accounting firm. The token sale event 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 created 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.

3. Active Portfolio Operations

As a result of the four full quarters of operations the net asset value 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.

In accordance with the TAAS token model, 50% share of the above gains equivalent to 2 USD(T)/TAAS 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.

With the global crypto markets downturn in 2018, TaaS activities in the 4th Quarter were mainly focused on effective portfolio rebalancing, risk mitigation and deal origination. The net asset value as of April 30th equaled 30.1 million USD(T) equivalent, outperforming the market benchmark by (generating alpha of) 3.5%, and resulting in capital gains exceeding 265 thousand USD(T) equivalent in Q4.

a. TaaS Contributions to TGEs and Token Sales Events

In March 2018 TaaS contributed to the 250,000 USD(T) prize pool for the Startup Pitch Competition within the d10e Bucharest Conference on Decentralization, thus entering the token sales of the top-4 competitors: InsurePal, Persona, theMINE and Native Protocol.

During the reporting period TaaS participated in 7 TGEs with the total amount contributed of approximately 880 thousand USD(T) equivalent. Each selected project underwent internal evaluation procedures, including rigorous due diligence on the financial, technical and legal aspects.

As of the reporting date, fifteen (15) projects are in their early contribution stage, and the relevant assets are vested or have limited liquidity.

b. Trading Operations

Aimed at maintaining a well-balanced portfolio of mid-to-long term contributions TaaS effectively re-balanced and diversified in strategically important assets, as well as took swing positions on exchanges.

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).

c. Lending

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

d. 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.

4. TAAS Token

TAAS tokens are built on a profit-sharing Ethereum smart contract, which offers 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.

The total circulating supply of TAAS tokens amounts to 8,146,000.78 resulting in a market capitalization over 45 million USD(T) equivalent as of the date of this Report. The tokens are currently listed on the following exchange/platforms: Bancor Protocol, Orderbook, Livecoin, EtherDelta, HitBTC, CoinExchange and Liqui.

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.

Annex 1

TaaS Financial Statements — Balance Sheet

USD(T) Equivalents — Exchange rates as of April 30th, 2018.
USD(T) Equivalents — Exchange rates as of April 30th, 2018.

Annex 2

TaaS Financial Statements — Profits & Losses

USD(T) Equivalents — Exchange rates as of April 30th, 2018.

TaaS Profitability Indicators

TaaS-to-Market Performance

Based on the results of the fourth quarter TaaS outperformed the global cryptomarket by (generated Alpha of) an est. 3.5%.