Slidedeck of the second workshop dedicated to Cryptocurrencies and blockchain. Focus on trading.

1. Initio Knowledge Sharing (IKS)
« Cryptocurrencies & Blockchain »
Blockchain Task force (07/02/2018)

2. Blockchain technology offers a range of opportunities 03
Benchmark analysis of transaction speed and fees 05
Bitcoin in brief, a key figure summary description 06
Gainers and Loosers: average Transaction Fees 07
Gainers and Loosers: TPS 08
Strategic analysis of Bitcoin 09
A Bitcoin/Blockchain SWOT analysis 10
Bitcoin has been a game changer. What about the rest?... 11
Portfolio management opportunities 12
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Contents

3. Blockchain technology offers a range of opportunities
« The Blockchain Fingerprint »
3

4. Blockchain technology offers a wide range of opportunities
« The Blockchain Fingerprint »
Digital Currency
• E-commerce
• Global payments
• Remittance
• P2P lending
• Microfinance
Securities
• Equity
• Private markets
• Debt
• Crowdfunding
• Derivatives
Record Keeping
• Healthcare
• Title records
• Ownership
• Voting
• Intellectual property
Smart Contracts
• Digital rights
• Wagers
• Escrow
4
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5. Benchmark analysis of transaction speed and fees
« Bitcoin vs other crypto-currencies »
5

6. Bitcoin in brief, a key figure summary description
« Comparative analysis of the 15 biggest crypto-currencies »
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7
Transaction per
seconds (TPS)
168
Market value in
USD million
D e c e n t r a l i z e d
Type of organization
structure
6.19
Average
transaction fee in
USD

7. Gainers and Loosers: average Transaction Fees
« Comparative analysis of the 15 biggest crypto-currencies »
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Name Market Cap (USD) Transaction fees
Bitcoin 168,077,000,266.00 6.1900
Monero 4,272,973,220.00 5.8700
Lisk 3,050,296,041.00 1.7950
Ethereum 106,706,653,950.00 0.8130
Dash 5,350,528,925.00 0.5450
Litecoin 8,757,735,261.00 0.2250
Bitcoin Cash 25,026,143,518.00 0.1150
Cardano 12,921,792,685.00 0.0542
Ripple 43,195,306,409.00 0.0038
TRON 3,369,259,549.00 0.0001
Stellar 9,205,904,704.00 0.0000
NEO 9,135,230,000.00 0.0000
EOS 7,290,084,536.00 0.0000
NEM 6,682,562,999.00 0.0000
IOTA 6,177,228,101.00 0.0000
THE BIGGEST CRYPTO
CURRENCY
HAS THE HIGHEST LEVEL
OF TRANSACTION FEES
Source: Coinmarketcap (Market Cap figures)

8. Gainers and Loosers: TPS*
« Comparative analysis of the 15 biggest crypto-currencies »
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THE BIGGEST CRYPTO
CURRENCY
HAS ONE OF THE LOWEST
LEVEL OF TRANSACTION
PER SECOND
Name Market Cap (USD) TPS*
Lisk 3,050,296,041.00 2.50
Stellar 9,205,904,704.00 4.00
Bitcoin 168,077,000,266.00 7.00
Ethereum 12,921,792,685.00 10.00
Cardano 106,706,653,950.00 10.00
Litecoin 8,757,735,261.00 28.00
Bitcoin Cash 25,026,143,518.00 60.00
IOTA 6,177,228,101.00 112.00
NEO 9,135,230,000.00 1,000.00
TRON 3,369,259,549.00 1,000.00
Ripple 43,195,306,409.00 1,500.00
Monero 4,272,973,220.00 1,700.00
NEM 6,682,562,999.00 10,000.00
Dash 5.350.528.925,00 10,000.00
EOS 7,290,084,536.00 100,000.00
*Transaction per seconds Source: Coinmarketcap (Market Cap figures)

9. Strategic analysis of Bitcoin
« Pros and Cons »
9

10. A Bitcoin/Blockchain SWOT analysis
« Where are we now? »
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10
S W
O T
Threats
• Increasing regulatory
pressure: SEC case
• Energy cost of mining Bitcoin:
Bitcoin Energy Consumption
Index topping at 47.65 TWh.
(Comparable to Singapore
electricity consumption)
• Some countries banished the
use of Bitcoins (Bolivia,
Ecuador, …).
Opportunities
• Great macroeconomic spot.
• More and more companies
start accepting Bitcoins as
payment method (PwC,
Barclays, …).
• A large list of potential use-
cases (Blockchain use-cases).
• Scalability – Lightning
network could reduce fees and
transaction speed.
Weaknesses
• Victim of it success: Scalability
issues.
• Average blocksize has
grown: 0.94 MB to 1.06 MB
with a 13% growth rate.
• Increasing transactions fees.
• Decreasing number of
transaction per seconds.
Strengths
• Bitcoin transactions are
performing a growing number of
24,293,141 Hash rate TH/s.
• Average of 220,440
transactions per days for
February 2018.
• 508,681 unique addresses
per days (Blockchain.info) and
an 14 mil wallets (Coinbase
report)

11. Bitcoin has been a game changer. What about the rest?...
« A Bitcoin VS Ethereum case study »
Tokens can be “payments” for:
• Securing the network
• Validating a specific transaction
• Providing some kind of off-line
work (smart-contracting)
Ethereum Technology Stack
Tokens can be representative
of share of ownership in a
company (ICO).
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12. Portfolio management opportunities
« Focus on Arbitrage and Future contrats »
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13. Arbitrage opportunities exist in the Bitcoin market
« Huge gaps were identified between bitcoin exchange markets »
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7.900,00 8.000,00 8.100,00 8.200,00 8.300,00 8.400,00
OKEx
Bitfinex
Binance
GDAX
bitFlyer
Bitstamp
Upbit
Kraken
OKEx*
Huobi
Price BTC (USD)
A fragmented market with many broker but no one has the same Market price for BTC
The difficulty for brokers to determine a “fixed” is real. In fact, high differences in BTC prices are due to a lack of market depth of the order book. This automatically
generates news market opportunities for traders. Arbitrage strategies have been widely used in traditional finance, striking a combination of matching deals that capitalize
upon the imbalance, the profit being the difference between the market prices.
High volumes means low deviation from the average price (TOP10)
Here we can illustrate the fact that brokers with an improved market depth of the order book will have a smaller deviation than the others like Huobi or OKEx (BTC/EUR).
0,00%
0,50%
1,00%
1,50%
2,00%
0
500.000.000
1.000.000.000
1.500.000.000
2.000.000.000
OKEx
Bitfinex
Binance
GDAX
bitFlyer
Bitstamp
Upbit
Kraken
OKEx*
Huobi
Volume (24h) Epsilon(i)
*OKEx for BTC/EUR pair

14. More emerging arbitrage opportunities with future contracts
« Bitcoin future contracts at CME and CBOE in short »
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CBOE
Future
Contract
equals 1 BTC
CME
Future
contract
equals 5 BTC
Contract
Expiration
Seems to be a
quarterly cycle
DID YOU KNOW
Cboe’s contract clears through the Options Clearing Corporation and an initial margin of
44 percent and a maintenance margin of 40 percent applies.
-CME’s contract will clear through CME ClearPort and will have a 43 percent initial
margin rate and a maintenance rate of 43 percent.

15. Credentials
« Initio Knowledge Sharing (IKS) »
15

16. Consultants
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Senior Consultant
Initio Luxembourg
Sami EL Bouamri
Sami work with a large portfolio of clients from various industries such as Banks and Insurance
companies and Investment funds (Hedge funds, PE/RE funds).
He supported his clients on different aspect of regulations such as Solvency II, PRIIPS, IFRS 9,
UCITS V and on other Risk Transparency reportings. He also has been involved on project related to
Business Process Automation, Blockchain, Crypto-currencies and Data science. Sami joined Initio in
2017.
Consultant
Initio Belgium
Yvan Roncevic
Yvan studied at UCLouvain and KULeuven and obtained a masters in management with a major in
financial analysis. After two internships, of which one within the FinTech sector, and a first
experience as an external auditor, Yvan joined Initio in 2017.

17. Contacts
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BRUSSELS
Boulevard Brand Whitlock, 60
Brussels, 1200 Belgium
+32 (0)2 669 77 44
brussels@initio.eu
LUXEMBOURG
153-155 rue du Kiem - Entrée D
8030, Strassen Luxembourg
+352 621 242 156
luxembourg@initio.eu
GENEVA
Rue du Commerce, 4
Geneva, 1204 Geneva
+41 (0) 22 591 79 21
geneve@initio.eu