Token-as-a-Service: Y2Q1 Report

Covering the period from May 1 to July 31, 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 in the middle 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

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 July 31, 2018, TaaS maintains a team of over 30 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 27, 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 keep its activities transparent and visible, TaaS maintains an in-house technology known as 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.

Image 1: Cryptographic Audit layout (source: taas.fund/audit)

CA is fine-tuned to provide its users with up-to-date information on the underlying assets held in 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 Taa

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.

Table 1: List of TaaS Designated Storages

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 and Portfolio Overview

With the global crypto markets downturn in 2018, TaaS activities during the reporting period were mainly focused on effective portfolio rebalancing, risk mitigation and deal origination. The net asset value as of July 31 equaled 18.37 million USD(T) equivalent.

As of July 31, 2018, the share of BTC, ETH and USD(T) in the portfolio comprises 45%, while the share of other tradeable cryptocurrencies (including Singularity.net AGI, Fuzex FXT, Metaverse ETP, NEM, EOS, and others) equaled 30% (5.4 million USD(T) equivalent).

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

TaaS Contributions to TGEs and Token Sales Events

During the reporting period, TaaS participated in one token sale event (currently undisclosed) with the amount contributed of approximately 272 thousand USD(T) equivalent. The selected project underwent internal evaluation procedures, including rigorous due diligence on the financial, technical and legal aspects.

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 Network, Livecoin, CoinExchange, EtherDelta, Zapple and Orderbook.

As of July 31, 2018, the token price equaled an equivalent of 1.8 USD(T)/TAAS, providing over 90% ROI to the participants of the Token Sale. TaaS market capitalization approximated 14.5 million USD(T) equivalent.

Chart 2: TAAS Token Price to Tether (Source: https://www.tradingview.com/)

ANNEX 1

TaaS Financial Statements — Balance Sheet
USD(T) Equivalents

Covering Period from May 1 to July 31, 2018

USD(T) Equivalents

ANNEX 2

TaaS Financial Statements — Profits & Losses

Covering Period from May 1 to July 31, 2018