the coin tree media kit deck
DESCRIPTION
“The Coin Tree is a cloud-based storage, insurance, and payment processing platform for bitcoin that leverages cutting edge transactional security to serve the ever expanding virtual currency community."TRANSCRIPT
“The Coin Tree is a cloud-based storage,
insurance, and payment processing platform
for bitcoin that leverages cutting edge
transactional security to serve the ever
expanding virtual currency community. “
2
CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
What is The Coin Tree?
Bitcoin?
CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY
3
1. Bitcoin is the first decentralized peer-to-
peer payment network that is powered by
its users with no central authority. In even
simpler terms, Bitcoin is a network that
enables a new payment system and a
completely digital money.
2. High-security cryptography ensures that
neither Bitcoins can be counterfeited nor
transactions reversed so long as honest
users control a majority of the network's
computing power.
3. The total number of Bitcoins is limited to 21
million. To-date approximately13 million
currently have been mined (created).
A rapidly growing, digital currency
that is supply constrained, avoids
direct sovereign control, and is
globally accepted.
What is
Bitcoin in the News
1. http://www.businessinsider.com/baml-initiates-coverage-on-bitcoin-2013-122. http://www.cnbc.com/id/101361590
4
"We believe Bitcoin can become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money transfer providers. As a
medium of exchange, Bitcoin has clear potential for growth, in our view.“
David Woo, Head of Global Rates and Currencies Research at
Bank of America Merrill Lynch Global Research: [1]
"The idea is very exciting. I think having a global currency where you don't have to spend all the money changing your currencies is admirable and whoever is behind bitcoin was brilliant."
Sir Richard Branson, CEO of Virgin Galactic: [2]
“The potential for disruption is enormous.”
“We have elected to put out money and faith in a mathematical framework that is free of politics and human error.”
Jeremy Liew, Lightspeed Venture Partners
Tyler Winklevoss, Entrepreneur & Venture Capitalist
Vocabulary of Bitcoin
Blockchain Public ledger of all transactions of a cryptocurrency
Cryptocurrency Assets protected by strong cryptography
Private key A private key is a secret piece of data that proves your right
to spend bitcoins from a specific wallet through a
cryptographic signature.
Public/private key Codes used to validate transfer of cryptocurrency
Signature A cryptographic signature is a mathematical
mechanism that allows someone to prove ownership.
Tumbler A method for randomizing cryptocurrency storage
Vault A highly secured form of cryptocurrency storage
Wallet Form of cryptocurrency storage: software, web, etc.
Exchange Environment, often virtual, where crypto currency is traded
5
CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY
• International
• Early 20s – Early 40s
• Highly educated in underlying technology
• Individual consumers
Today
• International
• Ages 18 – 55
• Moderately educated
• Individuals and merchants
Tomorrow
• International
• All ages
• All educational backgrounds
5 years from now
• Users: 1,200,000 Merchants: 40,000
Current Market Size
July 11, 2014 6
Customer Profile
CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
Bitcoin Growth: As Both Currency And
Market Value
7
10787100
12361350
10500000
10700000
10900000
11100000
11300000
11500000
11700000
11900000
12100000
12300000
12500000
Growth From Feb 2013 thru Feb 2014(Averages 4000 new coins per day)
$320,396,185
$14,464,698,057
$6,897,707,715
$-
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
$14,000,000,000
$16,000,000,000
Growth From Feb 2013 thru Feb 2014(Total Value of Bitcoin In Circulation)
CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY
Source: http://bitcoincharts.com/charts/bitstampUSD
Where is Bitcoin
8
Active Merchants on BitPay & CoinBase1
Value of Bitcoin transactions on 1st Day at TigerDirect 2
Increase from 2012 to 2013 in Merchant Transaction Volumes Using Bitcoin3
Used Today?
CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY
1. http://en.wikipedia.org/wiki/Bitcoin2. http://bitcoinboard.net/tigerdirect-processes-250000-bitcoin-payments-first-17-hours/3. http://blog.bitpay.com/2013/12/02/bitpay-drives-explosive-growth-in-bitcoin-commerce.html
Impact on Adoption
Large barrier to entry for new users
9
Access
Security
Storage
Distribution
The Coin Tree solves all 4 major dilemmas in Bitcoin adoption
Poor market delivery
Difficult to use storage solutions
Underdeveloped technology and protocol
Dilemma
CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY
Issue:
TCT Solution:
Issue:
TCT Solution:
Issue:
TCT Solution:
Issue:
TCT Solution:
Creating a mobile and globally accepted easy to
use platform decreasing the barrier of entry
TCT provides vault security though proprietary
multi-signature technology
TCT provides insured cloud enabled storage
as well as cash access to the stored asset
First movers advantage will provide a strong
marketing launch platform for TCT’s offering
$ 31mm
10
$ 33mm
$ 17mm
$ 40mm
Comparative Table
CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
11
Secure, Distributed,
Next-Gen Wallet
Insurable, Verifiable
Asset Class
Simplify Transactions &
Use As Global Currency
Value Added Services
For Community
Growing People, Business,
and Bitcoin Together
• Proprietary tumbling storage
environment
• Multi signature insured protection
• Mobile transaction processes
• Removing barrier to entry for new
users
The Coin Tree
Value Proposition
CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
The Wallet
Secure multi-cryptocurrency cloud system
The Vault
Multi-signature storage and insurance
The Access
Easy liquid access to stored asset through
reloadable prepaid cash cards
The Merchant
Global merchant and payment processing solutions
12
The Coin Tree
Offering
CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
Management Team Andrew Durgee – CEO
Operational Engineering – Worcester Polytechnic Institute
10 years in digital marketing, project management, and product development
3 Years in Bitcoin technology development
Isaac Waldron – COO Electrical Engineering – M.S. and B.S. – Worcester Polytechnic
Institute
7 years experience in applications engineering and software field testing
3 Years in Bitcoin technology development
Board Members David Baxter
Senior-level Sales and Marketing executive with experience in Payments, Financial Services, Technology and E-Commerce within Fortune 100 and Start-Up organizations. David is currently the VP of Sales, EBPP for ACI Worldwide.
13
Our Team and Board
CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
Elements for a Next Gen Insured Wallet:
Instant Access
Security/Insurance
Mobile Application
Responsive Customer Support
Legitimacy
Multi-Cryptocurrency Support
14
Insured Wallet
CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
What is a Wallet?
Form of cryptocurrency storage: software, web, etc.
All customer deposits, whether direct or via an
exchange, will be stored within the Vault
environment.
Once in the Vault signatures by multiple private
keys are required to move BTC.
All BTC stored within TCT Vault will be insured against theft and loss.
Keys are stored in a way that system
compromise is easily detected and halted,
limiting impact to insurance.
15
CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
Vault
Wallet System
July 11, 2014
CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY
16
The Coin Tree
Bitcoin Protocol
Web BrowserDedicated
Client
Wallet and Merchant
Web Servers
Internal Key Management
Servers
Insurer Key Management
ServersBitcoin Protocol Servers
TCT
Non-TCT
Solving the cryptocurrency liquidity problem:
-Use, Store, Convert to Cash-
Prepaid cash cards
Users have the ability to request reloadable cash
cards
Allows for easy access to stored value of bitcoin
Account management
Users will be able to access their account through
their mobile device
Users will be able to reload cards from their mobile
application from anywhere in the world
17
CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
The Access
TCT Merchant
Payment processing
POS integration
Payment/asset storage
Insurance
Liquidation
Internationally focused
Consulting and payment implmentation
18
Solutions
Current Merchant
19
• Current focus on exchange
• Not internationally focused
• Not usable by average merchants
• Difficult sign up process
• Not internationally focused
• Signup requires application submission
• Not internationally focused
Competitors
0 20 40 60 80 100 120 140
Establish source control
Wallet architecture
Wallet development
Wallet QA
Launch
TCT Project Development Timeline [days]
Completed Remaining
20
Development
Timeline Summary
CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY
Storage
Insurance
Prepaid Cash Card
Card Loading
Card Maintenance
Growth:
Ramp to storing about 25% of existing BTC by
Q3 2017
Consulting and Implementation
21
Revenue Sources
CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY
Consumer
Confidence
Current Consumer Confidence Issues: Lack of consumer confidence in products due to
lack of customer BTC domain knowledge creating large barrier to entry for new users.
High profile BTC hacking incidents have tarnished BTC reputation and stifled growth.
TCT Solutions: TCT will align with insurance companies while
building a high profile BoD in order to properly build consumer confidence.
TCT’s unique solution driving both legitimacy and security to the BTC sector will help to grow the user base while providing additional exposure for TCT itself.
22
CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY
Marketing
Current BTC Marketing Issues:
Failure to bring new technology and services through proper channels to public.
BTC start-ups are not properly budgeting for both digital and traditional marketing efforts.
TCT Marketing Solutions:
Using current news outlets hungry for BTC stories as a launch for platform.
Aggressive SEO/SEM strategies mixed with traditional targeted marketing allowing for maximum exposure while securing first movers advantage.
23
CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY