Slides from my presentation at Blockchain Expo London last week: security tokens vs securities-regulatory compliant ICO, cryptocurrencies vs utility tokens, and why anyone would even bother tying a security to a crypto asset.

1. Security Tokens
What is a security token, why it matters, and
why it’s not easy to issue one
New Alchemy Market Research | Presented at Blockchain Expo London, April 2018

2. A utility token provides access to a network of value.

3. Who we are
Experts in blockchain technology,
ICO advisory, and capital solutions
for the tokenized future.
...and we're just getting started.
Proudly based in
Seattle, WA
3Continents
Across
70+Team Members
25Active
ICO Clients
$2.7BOf Tokenizations
Involved in
Of Blockchain
Innovation
Years5+

4. Name Ticker ICO Raise
Indahash IDH $42.7M
BankEx BKX $67.1M
Zeepin ZPT $62.6M
Leadcoin LDC $50M
Utility Tokens

5. Name Ticker ICO Raise Market Cap Today*
Indahash IDH $42.7M $19.1M
BankEx BKX $67.1M $23.2M
Zeepin ZPT $62.6M $23.1M
Leadcoin LDC $50M $8.8M
*coinmarketcap.com
Utility Tokens That Have Fallen Beneath Their ICO
Fundraise Amounts

6. The Global ICO Market Hasn’t Exactly Cooled
$4.19B
$1.98B
$0.95B
$3.3B
$0.14B

7. Why Does This Crypto Asset Exist?
Currencies A form of money Utilities A license for network
access
Securities An instrument of
ownership
“Smart
Contracts”
A platform for building
DApps
We put crypto assets in 4 buckets

8. Utility Tokens
Marketed as
Securities

9. Private Fundraises Play a Larger Role
Q4 2017 Top ICOs Q1 2018 Top ICOs*
*As of March 15

10. Q4
2017
More of the
Largest ICOs
Exclude
U.S. Investors
Q1
2018

11. More U.S. Market ICOs Classify Their Sales as Securities

12. Limitations of
Utility Tokens

14. Sometimes the Lines Get a Little Blurry

15. Sometimes the “Utility” Is Questionable

16. The Security Token
Opportunity

17. Smart Contract Platforms + Utility Tokens Are Worth
More Than $113B in the Market Today
Source: Coinmarketcap.com, April 15

18. Everything is a security.
REIT
s
Treasury
BondsStocks
CDOs

19. • Regulatory Escape
• Reduce Counterparty Risk
• Fractional Ownership
• Anonymous Ownership
• Reduce Reporting & Issuance Costs
• Product-Level Securities
All these things can be done with traditional securities, but may be cheaper and more
accessible in a token.
Why Would You Bother to Tokenize a Security?

20. Limitations of
Security Tokens

21. “Tokenizing” an Asset Is Difficult
Gold is heavy, artworks are expensive to store, and real estate
ownership is dictated, and taxed, by governments.

22. “Ultimately, however, Propy’s vision is that jurisdictions
will adopt the Propy Registry as their official ledger of
record such that the transfer of a property on the Propy
Registry constitutes the legal transfer of the property and
the legal registration of that transfer.”

23. Here is a snapshot of the keepers of the “official ledger
of record” for real estate in 2017.

24. Even tying a crypto asset to the dollar can be difficult,
let alone real estate.

25. Questions?
Galen Moore
Director of Market Research
galen@newalchemy.io
NewAlchemy.io | hello@newalchemy.io