The document discusses the current state of Initial Coin Offerings (ICOs) and introduces the concept of "Tokenomics". It notes that while ICOs provide funding opportunities for startups, there are also regulatory uncertainties and risks of scams. Tokenomics is presented as a new field that studies how to design token models, value tokens, and analyze their performance. The document uses examples like Ether to illustrate how token value drivers work and provides an overview of the services offered by Token Capital Market related to ICO consulting and market analysis.

1. “We trust in a Blockchain ecosystem compliant with the financial practices used at
Investment Banks, Investment Trusts and Consulting firms.”
Tokenomics Research Center

2. ICO Bubble ?
Vitalik Buterin, September 2017:
“We are in an ICO bubble…. a lot of projects will fail and people will lose
money”

3. State of the Affairs
What Initial Coin Offerings Are, and Why VC Firms Care, Harvard Business Review,
March 2017:
“What traditional investors don’t like about any of this is the regulatory
uncertainty; the high valuations and over-capitalization; the lack of control
over financials, strategy, and operations; and the lack of business use-cases. And
like any industry, the ICO arena has had its fair share of outright scams, pump and
dumps, and blatant Ponzi schemes.”
• A lot of ICOs are scams
• Hard to distinguish scams from serious projects
• Investors are not professionals
• No Due Diligence

4. Tokenomics: a new science is born
Monetary
Economics
A Token is
currency into
an ecosystem
Tokenomics
Corporate
Finance
ICO funding is
a fundraising
operation by
nature
Market
Finance
Tokens are
liquids and
tradable on
exchanges
Game Theory
Incentives are
the core of
Token Model
Design
Token possible features:
 Medium of exchange (for goods & services)
 Unit of account (economic metrics inside the Token Ecosystem)
 Store of value (saving & investment)

5. Tokenomics for ICOs
• Token Model Design
• Valuation
• Financial Communication
Tokenomics is the bridge between Start-ups and
investors on the ICO Market

6. Token Model Design
 Understanding the Business Model & the vision
 Designing a Token Model enhancing the value creation & the token
circulation

7. Market Sizing & Token Valuation
 Each Market is defined by an annual market turnover called Total
Addressable Market
 The Tokenizable TAM is the TAM divided by the velocity, it equals to the
amount of Tokens needed to Tokenize the entire Market
 The Tokenized TAM is the TAM for which Blockchain provide an efficient
solution, it must equals the amount of token circulating in this market
TAM: $6 Billion
Velocity: 2
Disruption Rate 15%
Penetration Rate: 25%
Inputs

8. Case Study: Ether (ETH) Value drivers
• ICO Boom created demand for ETH because it was the medium of
exchange needed to buy Token
• ETH Price increase was led by a bullish ICO Market
• ETH Price is very dependent on Ethereum backed ICOs
ETH Use case
 Run Smart Contracts on the
Ethereum Blockchain
 Medium of exchange to buy
ERC20 Tokens
ERC20 Tokens are issued in an ICO
by a start-up in exchange of ETH

9. ICO Performance Analysis
Data as of Nov 2017

10. What do we do at Token Capital Market?
ICO Consulting
 Definition of relevant metrics for each Token Sale
 Total Addressable Market (TAM) Valuation
 Estimation of Token TAM
 Token Issuance Valuation
 Token Model Design
Market Watch & Trend Analysis
 Daily Coverage of 50+ major Cryptocurrencies
 Recording & Analysis of 300+ Token Sales

11. Token is the new Stock
@TheTokenomist @TCMLive