ICONOMI Financial Report — Q1 2019
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Heraclitus, a Greek philosopher, said that change is the only constant in life. And with that in mind, we also started 2019. As a team, we became leaner and our focus on the users gave its first results: launching new webpage, accompanied by more active status on our social media networks. The direction is set and ICONOMI Next is our new manifestation.
In Q1 our book value decreased slightly from 37.2 to 36 million USD. In January, we converted the second tranche of ICN to ETH. We partially sold positions in MANA, Aergo, and Bitcoin. Going forward we will disclose major positions we hold, while other transactions will be mentioned in comments. Regarding the previously undisclosed investments, these investments are Aergo, Arweave, Carry, Hypernet 1, Hypernet 2, Thunder, Oasis, Origo, Witnet, and Nucypher. We are proud to be an investor in these great projects, some of which are now trading at up 5x our investment multiples.
We will continue with selling alt coins and streamline our portfolio to core investments, while at the same time maintaining enough fiat for funding our operations.
Looking at our burn rate, we see significant improvement. While revenues in Q1 did not change much (platform fees were 40k, while staking fees were 38k), we decreased expenditures by almost a third. The main cut was in salaries (smaller team) and services costs. Legal costs (mainly related to eICN process and AML) and marketing costs are the main contributors to service costs.
Some of the effects of restructuring will also be seen in Q2, for which we expect even lower burn rate numbers. Of course, these numbers are heavily correlated to the market conditions, which are now turning more green. On top of that, we also made some special partnerships that will generate extra revenues — one is with TokenSuisse, where we are supporting them with a backend solution. They have a unique proposition where they offer their clients a possibility to create their own, actively managed crypto investment product with Swiss ISIN. The other partnership is with Solidum Capital, a leading European crypto asset management company. They appointed us as a custody provider for their clients’ digital assets.
Looking at Q1, we want to outline three things: fresh ideas, focus on the users, and continuous development. We had to go through the process of restructuring to bring fresh ideas to the table. We thanked some of our employees and greeted a new growth team. The goal is for ICONOMI to become the product people love to use, not just because of its features, its ease of use and lingo, but also because of our team’s passion and dedication to really make the product for them.
Going into Q2 the main expectations are around Social Portfolios and eICN. The latest eICN status is that our prospectus for issuing ICONOMI securities is under review by the regulator. We are still expecting the process to end in Q2, but giving a definite timeline is not possible since it is no longer just in our hands.
With Social Portfolios, everyone will be able to create their own portfolio and let family and friends invest at the same time. Many potential investors who are not yet active in crypto might find this opportunity as a gentle step into the crypto universe. So we continue to build a bridge between the traditional and crypto worlds together, and with that feature also you and your friends can be a part of our vision.
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