Token-as-a-Service — Quarterly Report
Covering Period from November 1st, 2017 to January 31st, 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 their impacts become clearer. Therefore, by way of example and not of limitation, and as may be applicable now and/or 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/or 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/or 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 provid 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 benefitting TaaS (the entity/entities) itself, or for the purpose of benefitting 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.
- Token-as-a-Service – Brief Info
- Summary of Operations
Token-as-a-Service — Brief Info
Incorporated in Singapore in February of 2017, Token-as-a-Service (TaaS) is a closed-end tokenized investment company actively contributing to the development of the blockchain ecosystem. Owners of the TAAS token capitalize on the rise of blockchain markets without dealing with hurdles, risks and technical barriers associated with owning, transferring and trading cryptocurrencies and tokens.
As of January 31st, 2018, TaaS maintained a team of 25 experienced traders and developers.
TaaS encourages members of the public to join its official information channels:
- Official website;
- Telegram Newsfeed;
- Telegram chat;
- Medium blog;
- Steemit blog;
Summary of Operations
1. Transparency and Security
a. Cryptographic Audit
In order to provide transparency and visibility of its activities, TaaS finalized development of the in-house technology known as the Cryptographic Audit (CA), which is a set of monitoring tools accessible by any member of the public who currently owns or is considering the purchase of TAAS tokens.
As of the date of the Report, the CA passed beta-testing. The estimated production version launch – early February 2018.
In order to ensure the safety of the funds managed by TaaS, secure wallets such as multi- signature hardware storages are utilized, 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.
0xecd7da67e6563bbddfc2ddff9ba2632c721af181 (ETH, ERC-20)
0xC78954e7E3b0303a0eB75544e794764c418B825A (ETH, ERC-20)
2. TaaS Token Sale Event
TaaS concluded its own 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- renown accounting firm. The token sale event ended on April 27th, 2017, and 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) equivalent per TAAS.
3. Active Portfolio Operations
The operations of TaaS Active Portfolio during the reporting period included (1) participation in token generation/sales events (TGEs), (2) trading crypto assets and cryptocurrencies on major exchanges and (3) cryptocurrencies fixed income operations.
During its 3rd quarter TaaS increased the total asset value by 36.8 million USD(T) equivalent, from 13.94 to 50.75 million USD(T) equivalent.
As a result of the full 3 quarters of operations TaaS capital gains exceeded 32 million USD(T) equivalent. In accordance with the TAAS token model, 50% share of the above amount equivalent to 1.98 USD(T)/TAAS, is distributed to the token owners in the form of ETH (a total of 30.4 thousand ETH). 25% of the capital gains equivalent to 8 million USD(T) were retained in the active portfolio.
a. TaaS Contributions to TGEs and Token Sales Events
In November 2017 TaaS contributed to the 250,000 USD(T) prize pool for the ICO Pitch Competition within the d10e Davos Conference on Decentralization, thus entering the token sales of the top-3 competitors: The Hacken Ecosystem, Neuromation and OSA Hybrid Platform.
During the 3rd quarter TaaS participated in ten TGEs with the total amount contributed equivalent to 5.2 million USD(T). Each selected project underwent internal evaluation procedures, including rigorous due diligence on the financial, technical and legal aspects.
As of the reporting date, thirteen (13) 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, during the reporting period, TaaS effectively re-balanced and diversified in strategically important assets, as well as took swing positions on exchanges.
The share of BTC, ETH and USD(T) in the portfolio comprised 54%, while the share of other tradeable cryptocurrencies (including EOS, SALT, Bancor BNT, TenX PAY, Icon ICX, and others) equaled 36% — or 17.85 million USD(T) equivalent. A total of 10 thousand trades were executed during the reporting period.
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
During its Q3 TaaS has been developing and testing multiple arbitrage and algorithmic trading strategies, resulting in approximately six thousand trades.
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 (NAV) 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 48 million USD(T) equivalent as of the date of the Report. The tokens are currently listed on the following exchanges: Bancor Protocol, Orderbook, Livecoin, EtherDelta, HitBTC, CoinExchange and Liqui.
As of January 31st, 2018, the token price equaled an equivalent of 5.9 USD(T)/TAAS, providing an over 500% ROI to the participants of the Token Sale held nine months ago.
TaaS Financial Statements — Balance Sheet
TaaS Financial Statements — Profits & Losses
TaaS Profitability Indicators
Based on the results of the third quarter TaaS outperformed the global cryptomarket by (generated Alpha of) an est. 82 % and Bitcoin by over 205%.