Coinsilium #COIN $CINGF – Investor Q&A April 5, 2021 – Posted in: Blog, Coinsilium (COIN) – Tags: , , , , , , , , , , , , , , , , , , ,

Coinsilium (AQSE:COIN OTCQB:CINGF) Investor Q&A.

 

Q: How does Coinsilium earn its income?

Coinsilium: Coinsilium was originally set up and started life as a public company investing in blockchain technology start-ups; so it didn’t initially have a revenue generating business model.

In 2017 we set up an Advisory Services division to respond to the surging demand from companies planning to issue tokens via Initial Coin Offerings (ICOs) at the time. Our work in this area helped the Company to record revenues of £586,263 in 2017 (2016: £208,627) rising to £1.68m in 2018. The type of advisory work we do can vary; for the first two years this was focused on advising projects undertaking token sales with some big-ticket success fees derived from our larger clients. Much of the legacy from this lucrative period is now reflected in the Company’s current crypto treasury reserves which as at 6 April 2021 stands at US$3.128m equiv.

Since 2019, our advisory work has become much more strategic and project based. As investors will be aware, Coinsilium is now targeting revenues from its activities in the Non-Fungible Token (NFT) space, initially to be derived from commercial venture projects, the first of which being the Gibraltar Crypto Stamp NFT with initial sales to commence subsequent to the stamp’s release on 17 May 2021. Several other digital collectibles projects are also under review, though our current focus is on successfully delivering this initial commercial project and proving our capability to the market.

More recently we announced on 2 March 2021 an MoU with Indorse Pte Ltd to launch Nifty Labs as an NFT focused blockchain development studio in Gibraltar which will act as a ‘picks and shovels’ business, offering blockchain development and advisory services to clients alongside the development of in-house projects. This is an extremely exciting and most timely venture with the potential for generating meaningful ongoing revenues for the Group and we look forward to providing regular progress updates to the market over the coming weeks and months. 

Q: The potential with Nifty Labs sounds very promising. In your Novus interview you said that you compared your offering to a cake shop saying something like ‘once they’re in the window we’ll know how quickly they’ll sell? Can you provide some rough guidance or ideas on approximate commission that Coinsilium will earn from these deals?

Coinsilium: Nifty Labs aims to be a commercial partnership between Coinsilium and Indorse which is currently progressing from the MoU stage. Its operations are intended to be those of an NFT focused blockchain development studio with an advisory services capability. Revenues will therefore be derived from fees charged for building solutions and the delivery of services rather than a ‘slice’ of commission.

Under its ‘development’ capability Nifty Labs aims to offer commercial solutions such as Non-Fungible Token (NFT) Development, Smart Contract Development, NFT Wallet Development and integration services with NFT Marketplaces.

Under its advisory services function Nifty Labs aims to offer clients a suite of commercial services such as NFT Concept Development, Tokenomics Modelling, NFT Execution Strategy and Token Sale Model Strategy.

As announced on 22 March 2021, whilst discussion with Indorse advance towards a formal agreement, in the interim, the Company has agreed to provide Nifty Labs with an initial working capital and development facility of up to GBP250,000. A proportion of these funds will be allocated to the commissioning and fast-track development work for an NFT platform solution, with the Indorse team managing the technical aspects of the project.

Currently this project is in ‘stealth’ mode though we would expect to be able to release some high-level details to the market in the medium term.

Q: Some platforms are now paying interest on BTC / Ether on deposit. Aside from the crypto asset price movement gains, does Coinsilium receive interest on its crypto assets and tokens on deposit?

Coinsilium: Coinsilium’s cryptocurrency holdings make up its crypto treasury reserves. Investors will be aware from updates provided that the Company has grown its crypto treasury reserves from around US$575k equiv. in August 2020 to around US$3.128m equiv. as at 6 April 2021. These compounded gains have, in the main, been achieved by deploying an active, and at times aggressive, treasury management strategy which has proven to be most effective in the current crypto bull market cycle. Whilst the ‘staking’ of crypto (in return for interest) continues to feature as an element of the Company’s active treasury management strategy, it has not been the most significant driver for delivering the quantum appreciation in our crypto holdings we have managed to achieve to date.

Q: Applications for the NFT market seem almost limitless, but can you give an idea of where you see the potential applications and markets for NFTs. Also some will see the whole NFT space right now a bit like the dot com boom and just another giant bubble that’s going to burst?

Coinsilium: There are multiple dimensions to the NFT phenomenon. One dimension, the most visible one, is the market for highly priced NFTs such as the CryptoPunk NFTs or the Beeple NFTs. Right now this market is experiencing the double effect of the digital art hype and the NFT hype, so we can likely expect large price fluctuations for these pieces in the coming months and years.

However, it is our belief that we will soon enter a phase of commoditisation of NFTs, as more and more brands and celebrities start to issue NFTs. Consequently, we can expect the media frenzy to subside as the market becomes more discerning. We expect this will bring the second dimension of NFTs to the fore thanks to the fast-growing technology infrastructure being built to accommodate newcomers in the crypto space. This is the tech infrastructure dimension which is needed to build and power a multitude of NFT applications in various industries, besides art and entertainment (i.e. finance, real estate, education, government services, manufacturing, etc…). NFTs are propelling the cryptocurrency space towards mass adoption and that in turn will attract a huge number of mainstream brands and applications to the NFT space; itself a subsector of crypto. This will benefit all the actors across the blockchain technology stack and right now, through Nifty Labs, Coinsilium is positioning itself to be at the fore of this new wave of mainstream interest and adoption.

Q: Are there any plans to change the listing in either the UK or US?

Coinsilium: As a publicly traded growth company it is important that Coinsilium’s shares are quoted on a market that reflects its current requirements, best serves its growth ambitions and which can attract investors in sufficient numbers to support its targeted growth.

Coinsilium’s biggest challenge historically has been a lack of trading liquidity on the London market. However, this now looks to have been largely resolved, thanks to the continuing efforts being made by the Aquis Stock Exchange team in London, combined with the Company’s shares being admitted to trading, in October 2020, on the OTCQB section of OTC Markets in New York, under the ticker CINGF, which has now opened up Coinsilium stock to a large new US investor audience.

At this precise stage in the Company’s journey, we believe that the combination of an Aquis Stock Exchange and OTC Markets quote offers a great fit to support Coinsilium’s growth ambitions and the needs of investors for greater trading liquidity. As the Company continues to grow and mature it is quite conceivable that at some point in time a larger market would be more suitable for our needs, but I don’t think we are quite there yet.

Q: When are we likely to hear update development from the Indorse / Coin JV, Nifty Labs?

Coinsilium: To be clear Nifty Labs is not at the JV stage yet, it is still under an MoU as announced on 2 March 21 and we are now working to progress this towards a formal partnership agreement with Indorse. However, as you may have seen from our announcement of 22 March 21, we are in the meantime continuing to work together to get Nifty Labs prepared for the commencement of commercial activities, whilst this process is ongoing.

https://irpages2.eqs.com/websites/coinsilium/English/21/news-tool—rns—eqs-group.html?iframe=true&newsID=2069870

We can’t give any timescales at this stage, but what we can say is that there is a willingness and eagerness on both sides to formalise an agreement as soon as possible and we will continue to work towards the commencement of commercial activities for Nifty Labs in parallel with this.

Q: Is Coinsilium involved in any way, with Redfox’s new metaverse that they announced this week? If yes, can we get a little more detail around what COIN’s involvement is?

Coinsilium: On 10 December 2020 Coinsilium announced that it had entered into a Technical Development and Support Agreement with RedFOX Labs to support the launch of the Gibraltar Crypto Stamp NFT project. This being the first project we are undertaking jointly, both parties are now very much focused on completing its successful launch. Both parties however believe that there are many opportunities for us to potentially work together going forward, across a number of industry sectors and we continue to jointly explore opportunities to do so.

Q: Would you consider a rebrand / name change to move the company away from being seen as crypto, and something more Blockchain / NFT related?

Coinsilium: Coinsilium’s brand and descriptor has always put ‘Blockchain Technology’ to the fore and this will continue to be the case.  However, this is a fast-moving space and NFTs + cryptocurrencies are inevitably a subset of Blockchain technology.

Going forward, Nifty Labs is the vehicle which will cover all things NFT related and the ‘Nifty’ in Nifty Labs is what will say that to the market.

Q: Same question for Nifty Labs, would it make sense to name it Nifty Labs NFT to capitalise on the surging demand for NFT’s.

Coinsilium: The term ‘Nifty’ is becoming more and more synonymous with NFTs and we are already seeing the terms being used interchangeably. Of course, Nifty Labs commercial proposition and branding when launched will make it perfectly clear what line of business we are in!

Q: Are there any timescales that can be given around new projects being sought in the Gaming / Art / Music / Sports space?

Coinsilium: Whilst we can’t give timescales, we can say that a growing number of projects across all these named sectors are now under evaluation and at various stages of review. But we will only be able to announce any new projects once formal agreements have been signed off.

Q: I’m following Nifty Labs on Twitter and I’m the only follower 1. If you look at Nifty gateway, they have 75,000 followers. What are the plans for marketing on social media and do you have a dedicated person working on this?

Coinsilium: Nifty Labs Twitter account is not yet live, we just needed to set it up in order to claim the name. Nifty Labs branding, marketing and social media strategy will all be addressed in line with commercial imperatives.

The recent RSK blog announcement https://blog.rsk.co/noticia/non-fungible-tokens-redefining-scarcity/ was the best summary I have seen to tie together the NFT, and even the general development relationships, between Coinsilium and all your partners. As well as being clearly written and informative to those just now investigating NFT potential. Is it possible to adapt this (and updated versions in future) into a Coinsilium branded summary that can be easily tagged and linked to all announcements or interviews online?

The part in the RSK blog post related to Coinsilium was their commentary on Coinsilium’s 22  March 2021 announcement regarding Nifty Labs and specifically its proposed focus on NFTs on Bitcoin. The rest was RSK’s commentary on NFTs in general from their own perspective.

https://irpages2.eqs.com/websites/coinsilium/English/21/news-tool—rns—eqs-group.html?iframe=true&newsID=2069870

Likewise, Coinsilium (and going forward Nifty Labs), will continue to put out its own commentary, thought-leadership pieces and educational content on NFTs both alongside regulatory announcements and also on a stand-alone basis. We will also continue to circulate media commentary and by-lines through our social media platforms.

Q: What sort of company do you think Coinsilium will be in 5 years’ time?

Coinsilium: A year in the Blockchain space is like 5 years in any other sector and this industry, driven by technological innovation, is now moving at a breakneck speed.

From the launch of our initial NFT project with the Gibraltar Crypto Stamp, the next critical step the Company took was entering into the recently announced MoU with Indorse to establish Nifty Labs in Gibraltar. This is all about the right people being in the right place at the right time and will see the Coinsilium and Indorse teams working much closer together.

If we get this right (which we obviously aim to do!), then such a deal will bring with it a ‘best in class’ technical capability to complement Coinsilium’s commercial deal-making experience, knowhow, partnership network and connections. This will make for a powerful combination from which to build a commercial, technology-strong ‘picks and shovels’ blockchain business and a meaningful profit centre for the Group, with the potential to deliver real long-term value for our shareholders.

There are of course other aspects to the business which have the potential to generate significant long term shareholder value, not least of which being our 50/50 JV with IOV Labs in SE Asia; though we will need to wait until travel restrictions in the SE Asia region are lifted before we can expect significant developments there.

So, in answer to the initial questions as to where we see Coinsilium in 5 years’ time, whilst it’s hard to predict so far out, we do know that we are building a solid business on firm foundations in one of the fastest moving technology sectors globally.

To revisit the previous ‘cake shop’ analogy, the proposed partnership between Nifty Labs and Indorse will create a complete, all-round blockchain technology development company and in effect adds an industrial scale ‘state-of-the-art’ NFT cake factory behind our prime-positioned NFT cake shop! 

Q: Being invested in crypto you see a lot of Roadmaps and easy to digest summaries, sometimes even in the form of flow diagrams with key info highlighted and such. Is it possible to get that sort of consistent message in such an easy to share and digest format out there in the public domain?

Coinsilium: This is an area we are working on right now (in addition to optimising our investor communications) and where we expect to be able to provide a lot of fresh investor focused content on an ongoing basis. If you haven’t already done so, we would urge all shareholders to check out the media section on the Coinsilium website which is regularly being updated with fresh content.

https://coinsilium.com/media-news

We would also urge shareholder to register for our quarterly newsletter via the Coinsilium website or here:

https://coinsilium.us10.list-manage.com/subscribe?u=7c28901dd05f3fe78a690aa0e&id=92fa9d90f6

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