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DJ Coinsilium Group Limited: Coinsilium hones in on DeFi and Crypto Finance markets

 
 Coinsilium Group Limited (COIN) 
Coinsilium Group Limited: Coinsilium hones in on DeFi and Crypto Finance 
markets 
 
13-Jul-2020 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
        COINSILIUM GROUP LIMITED 
 
        ("Coinsilium" or the "Company") 
 
        Coinsilium: Strategic Business Review 
 
     Coinsilium hones in on burgeoning DeFi and Crypto Finance markets 
 
London, UK, 13 July 2020 - Coinsilium Group Limited (AQSE:COIN) the 
blockchain technology venture builder, is pleased to announce that further 
to its announcement of 8 July, a Strategic Business Review (the "Review") of 
the Company's operations and equity investments is now underway. 
 
The objective of this Review is: 
 
  1) to align the Company in readiness for its participation within the 
  recently announced IOV Joint Venture (JV) 
 
  2) to ensure that the Company is optimally positioned and resourced to 
  capitalise on new and substantial opportunities in the burgeoning 
  Decentralised Finance (DeFi) and Crypto Finance sector, including the 
  development of products, solutions and services in Crypto Lending, Crypto 
  Staking and Stable Assets, both from within the scope of its joint venture 
  with IOV and also from Coinsilium's operational base in Gibraltar, which 
  is fast becoming a pre-eminent global regulatory jurisdiction for 
  innovative financial technology, including cryptocurrencies. 
 
The global Crypto Finance market is showing strong month-on-month growth 
with active collateral on DeFi platforms now in excess of USD2.1Bn. 
 
The Company is working on several DeFi models with the aim of launching 
commercial solutions either independently or through its partner network. 
 
Coinsilium has also commenced income generating staking operations using its 
crypto reserves as active collateral, therefore utilising existing internal 
resources to accelerate and enhance new revenue generation. 
 
Staking activities are expected to increase over the coming months as the 
Company looks to develop further in-house expertise to expand its 
operational capabilities. 
 
As part of the process of general business restructuring, and in line with 
the ongoing Review, Coinsilium's investment holding company Seedcoin Limited 
has been redomiciled from the BVI to Gibraltar in preparation for a proposed 
transaction. 
 
Strategic Business Review 
 
On 8 July the Company announced the execution of a Joint Venture Agreement 
(JVA) with IOV Labs Limited (IOV) which represents a transformational event 
for Coinsilium and presents the Company with a unique commercial opportunity 
to create value for shareholders in joining forces with IOV and its 
extensive global partner network at the forefront of the global DeFi and 
blockchain mainstream adoption drive. 
 
At the same time the market is also seeing unprecedented levels of interest 
and growth within the DeFi and Crypto Finance space which is now emerging as 
a key driver for the blockchain and cryptocurrency sector as a whole. 
 
Management believes that the scale of the IOV JV opportunity, combined with 
a resurgent DeFi and Crypto Finance market, presents an unprecedented 
opportunity for Coinsilium and its shareholders going forward. 
 
The Company has therefore commenced a Strategic Business Review process 
covering the Company's existing operational activities and equity investment 
portfolio to pave the way for the Company to transition from an investor in 
early-stage start-ups to a focused Blockchain, DeFi and Crypto Finance 
venture operator. 
 
DeFi, Crypto Financing and Staking 
 
One of the leading trends this year in the world of cryptocurrencies and 
blockchain is the growing traction of Decentralised Finance (DeFi) 
applications. 
 
DeFi is a space of active innovation fostering a growing number of crypto 
finance platforms and products combining crypto assets as stake, collateral, 
derivatives, and yield-generating tokens. The increasing number and adoption 
of stablecoins, pegged to and collateralised by fiat (government-issued) 
currencies or cryptocurrencies also contributes to innovation in the space. 
 
As of 8 July, the total value of active collateral on DeFi platforms was in 
excess of USD2.1Bn according to Defipulse.com [1]. This trend is widely 
expected to accelerate with the launch this year of the first phase of 
'Ethereum 2.0' undertaking the transition from a Proof-of-Work to a 
Proof-of-Stake consensus algorithm of the Ethereum blockchain. 
 
A recent study by PwC and Elwood, the '2020 Crypto Hedge Fund Report', shows 
that 42% of the crypto funds who were analysed for the report are staking 
cryptocurrencies. Staking is an alternative model to 'Mining' and is 
designed to support the security and operations of 'Proof of Stake' 
blockchain networks. 
 
There are now a growing number of Staking-as-a-Service operators and 
delegates that perform the technical work of validating transactions. 
Participants can earn revenues by lending or staking their crypto assets to 
the blockchain nodes which in turn validates the transactions. 
 
Participants need to have a minimum amount of holdings in whichever 
cryptocurrency runs the network in which they are taking part. Staking 
involves committing or delegating coins to third parties to validate 
transactions on Proof-of-Stake blockchains. 
 
Whilst these holdings are staked they cannot be touched, thereby lowering 
the circulating supply and creating scarcity. This has the dual benefit of 
securing the network whilst creating the underlying conditions for the 
participant's crypto assets to potentially increase in value. In exchange 
for committing their coins to secure the blockchain, participants earn 
'coded income' in the blockchain cryptocurrency. 
 
DeFi protocols often describe this type of income using the umbrella term 
'passive income'. In a recent thought-leadership article [2] by Coinsilium's 
CEO, Eddy Travia, he discusses the significance of the emerging 
Decentralised Finance marketplace and suggests a new term for these revenues 
as 'coded income'. The full article can be read here: 
 
https://medium.com/@startupeddy/the-coded-income-model-81095534e624 [2] 
 
Coinsilium to move into DeFi, Crypto Financing and Staking 
 
Whilst the DeFi and Crypto Finance sector is growing rapidly it is still in 
its early stages of maturity. Coinsilium is therefore ideally positioned to 
enter the market at this crucial formative stage, by joining forces with its 
global partner network, including IOV Labs and Money on Chain, to develop 
Bitcoin-based DeFi solutions and Coinsilium's 'Coded Income Model [2]' as 
well as solutions for other emerging segmental markets such as Crypto 
micro-lending; all of which are designed to connect the crypto economy with 
the real economy. 
 
The Company is currently working on several DeFi models with the aim of 
launching commercial solutions either independently or through its partner 
network. Given the current pace of growth in the sector the company believes 
that such solutions have the potential to generate meaningful revenue 
streams for Coinsilium. Further updates will be provided to the market in 
due course with details of progress and developments. 
 
Partnering with IOV Labs and RSK Technology 
 
Most of the DeFi platforms currently utilise the Ethereum blockchain, 
however, Bitcoin-based DeFi solutions are now burgeoning with Coinsilium 
partner company IOV Labs [3] its most active proponent, facilitating the 
development of several DeFi solutions for Bitcoin using RSK [4] technology. 
 
Solutions built on the RSK blockchain to date include the Money on Chain [5] 
platforms. In December 2019, the first Money on Chain platform launched 
'Dollar on Chain' (DOC), a stablecoin collateralised by RBTC, the native 
token of the RSK Live Mainnet which is pegged 1:1 to Bitcoin. 
 
In April 2020, Money on Chain launched the Rif on Chain [6] DeFi platform, 
the first RIF DeFi ecosystem built and deployed on the RSK blockchain 
network. Money on Chain recently announced the launch of TEX [7], a 
Decentralized Token Exchange based on the London Gold Fix method. 
 
Coinsilium's Equity Investment Portfolio 
 
The immediate scrutiny of the Review will be with respect to the Company's 
existing equity investment portfolio and its activities as an investor and 
accelerator of early stage blockchain start-ups. 
 
Given that going forward the main focus will be on projects developing 
solutions utilising RSK technology and RIF solutions, the Directors consider 
that the timing is opportune for preparing for exits from Coinsilium's 
legacy equity investment portfolio. 
 
The initial stage of this process has now commenced and in this respect the 
Company is pleased to announce that it has formally completed the 
re-domiciliation of its 100% owned equity investment subsidiary, Seedcoin 
Limited, from BVI to Gibraltar, a recognised blockchain technology industry 
hub, where Coinsilium is now operationally based. 
 
The intention is to realise value from Seedcoin Limited in the near term by 
way of a transaction, liquidity event or outright sale. 
 
Initial early stage discussions with certain interested parties are ongoing 
and whilst there can be no guarantee that these discussions will lead to a 
value accretive transaction, it is the Company's view that, given the 
substantial progress made by certain companies amongst Coinsilium 
investments, the Seedcoin portfolio holds materially greater value than is 
currently recognised by the market. 
 
Further updates on any material developments will be provided to the market 
in a timely fashion. 
 
Staking and Crypto Assets Treasury Management 
 
The Company currently holds a proportion of its treasury funds allocated in 
cryptocurrencies, (predominantly Bitcoin, Ethereum and RIF tokens) and has 
recently started to stake a proportion of this to generate income using 
various models with varying risk profiles. 
 

(MORE TO FOLLOW) Dow Jones Newswires

July 13, 2020 02:00 ET (06:00 GMT)

DJ Coinsilium Group Limited: Coinsilium hones in on -2-

At this initial stage, it is utilising a proportion of its vesting RIF token 
allocation via Money on Chain's RIF on Chain platform. Further details 
regarding Money on Chain platforms can be found here [8] 
 
https://moneyonchain.com/faq/ [8] 
 
The Company will look to extend its staking activities over the coming 
months and also to develop further in-house expertise to manage its digital 
assets and take advantage of various other income generating opportunities 
available in the Crypto Finance market. 
 
The Company intends to provide regular updates to the market on its staking 
activities and details of further developments in this respect will also be 
announced in due course. 
 
Coinsilium DeFi and Crypto Finance launch. 
 
The Review process will be conducted over the coming months followed by the 
repositioning of the Company's operating model along with renewed corporate 
branding and a website relaunch. 
 
Coinsilium Chief Executive Eddy Travia commented: "We have been closely 
monitoring the growth of DeFi and Crypto Finance for some time and it is 
clear to us that the sector is still in its very early stages; with massive 
inflows of capital anticipated into these platforms and financial products 
over the next few years. 
 
We see the convergence of negative interest rates, the aftermath of economic 
crises, the emergence of central bank digital currencies and the overall 
political instability as a catalyst for institutional and individual 
investors' interest in Crypto Finance, given the significant returns 
achievable and the fluidity of these financial products. 
 
We therefore want Coinsilium to be ready to take full advantage of this 
inflow of funds and interest in this new wave of financial products and to 
create value for our shareholders by being an active builder and participant 
in this specific sector of the blockchain and cryptocurrency space. 
 
We believe that we have the right experience, jurisdiction (Gibraltar's 
reputable blockchain ecosystem), network and access to the most suitable 
technical and commercial partners, such as our joint venture partners IOV 
Labs, to execute this new strategy. The purpose of this Review is to put us 
in a position to do so successfully and we look forward to providing ongoing 
updates to the market as we enter this exciting new stage in the Company's 
development." 
 
The Directors of Coinsilium Group Limited take responsibility for this 
announcement. 
 
For further information, please contact: 
 
Coinsilium Group Limited               +44 (0) 7785 381 089 
 
Malcolm Palle, Executive Chairman      www.coinsilium.com 
 
Eddy Travia, Chief Executive 
 
Peterhouse Capital Limited             +44 (0) 207 469 0930 
 
Guy Miller / Mark Anwyl 
 
(AQSE Growth Market Corporate Adviser) 
 
SI Capital Limited                     +44 (0) 1483 413 500 
 
Nick Emerson 
 
(Broker) 
 
Notes to Editor 
 
About Coinsilium 
 
Coinsilium is a focused Blockchain, DeFi and Crypto Finance venture 
operator. As the first ever IPO of a blockchain company in 2015, Coinsilium 
has harnessed its experience and wide-ranging network to invest in leading 
blockchain projects such as RSK/IOV Labs, Indorse and Blox. 
 
In July 2020 Coinsilium executed an agreement with global blockchain 
protocol company IOV Labs, to establish a 50/50 Joint Venture Company in 
Singapore to promote and commercialise RSK's products, services and 
technologies in the Asian markets and to promote the adoption in the region 
of the RIF token which powers the ecosystem of solutions developed by RSK, 
their partners and developers around the world. 
 
Coinsilium shares are traded on the AQSE Growth Market, the primary market 
for unlisted securities operated by Aquis Stock Exchange, a Recognised 
Investment Exchange under the Financial Services and Markets Act 2000. 
 
For further information please visit [9]www.coinsilium.com [9] or follow 
@CoinsiliumGroup on Twitter 
 
ISIN:          VGG225641015 
Category Code: MSCM 
TIDM:          COIN 
Sequence No.:  75189 
EQS News ID:   1091801 
 
End of Announcement EQS News Service 
 
 
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(END) Dow Jones Newswires

July 13, 2020 02:00 ET (06:00 GMT)