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1 08/01/2016
EDGAR Histories
Part I: “Currencies”
Part II: Bitcoin, Ethereum, and Ripple
Part III: Smart Contracts and Tokens
Episode 002
Crypto on Wall Street,
Part I: “Currencies”
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EDGAR Histories 002 08/01/2016
Crypto on Wall Street, Part I
Currency
Many look at “crypto” through the lens of
currencies.
But crypto wasnʼt the first “alternative”
currency in the modern era.
So, how - and when - did these frames align?
(N.B.: the definition of currency and money has changed
over time and varies by legal or regulatory context.)
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Crypto on Wall Street, Part I
Digital Currencies
Virtual Currencies
Cryptocurrencies
Many look at “crypto” through the lens of
currencies.
But crypto wasnʼt the first “alternative”
currency in the modern era.
So, how - and when - did these frames align?
(N.B.: the definition of currency and money has changed
over time and varies by legal or regulatory context.)
Search Concepts
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EDGAR Histories 002 08/01/2016
Crypto on Wall Street, Part I
Digital Currencies
Virtual Currencies
Cryptocurrencies
Source: Annual reports (10-Ks) from
domestic, listed companies.
Date Range: 1994-2022
Excluded: non-listed US, Canadian, and other foreign filers.
Search Concepts
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Digital Currencies
Virtual Currencies
Cryptocurrencies
Search Concepts
Unique Filings
Concept Unique Filings
Virtual 175
Digital 210
Crypto 337
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Digital Currencies
Virtual Currencies
Cryptocurrencies
Search Concepts
Unique Filings
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Digital Currencies
Virtual Currencies
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Cryptocurrencies
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Digital Currencies
Virtual Currencies
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Cryptocurrencies
2007
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Digital Currencies
Virtual Currencies
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Cryptocurrencies
Source: TechCrunch. https://techcrunch.com/2007/04/29/iac-launches-zwinktopia-at-peak-of-virtual-world-hype/
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Virtual Currencies
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Cryptocurrencies
IAC Consumer Applications and Portals. The IAC Consumer Applications and Portals business offers branded search
toolbars, including the MyWebSearch and Ask-branded toolbars. These toolbars enable users to run search queries from
any website using one of several popular search algorithms, including those of Ask destination search websites. Many of
these toolbars offer additional benefits, such as pop-up blocking and quick access to personalized portal content. These
toolbars can be installed free of charge, with the MyWebSearch toolbar being promoted by distribution through
FunWebProducts (as described below). In addition, distribution arrangements are in place with several third parties to
bundle the Ask-branded toolbar with their downloadable applications, in which cases related revenues are generally
shared (net of amounts retained by paid listing providers) with these third parties.
The IAC Consumer Applications and Portals business also offers several free, downloadable applications that include
search functionality, together with a number of features designed to make online activities more personal, interesting and
fun. FunWebProducts offers a suite of these features, which include, among others, Smiley Central, through which users
can add emoticons to e-mails and instant messages, Webfetti, through which users can personalize their pages on various
social networking websites and Zwinky, through which users can create avatars to express their persona on the web and
design and update profile pages to share with friends. Zwinky also provides users with access to Zwinktopia, a virtual
world where the users' avatars can interact through chat and other features and can purchase virtual items with
virtual currency.
(Item 1, Business Description, Media Services)
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Virtual Currencies
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Digital Currencies
Virtual Currencies
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Cryptocurrencies
Source: TechCrunch. https://techcrunch.com/2007/04/29/iac-launches-zwinktopia-at-peak-of-virtual-world-hype/
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Virtual Currencies
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Cryptocurrencies
Source: Virtual Worlds Fandom. https://virtual-worlds.fandom.com/wiki/Zwinky
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Cryptocurrencies
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Digital Currencies
Virtual Currencies
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Cryptocurrencies
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Digital Currencies
Virtual Currencies
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Cryptocurrencies
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Digital Currencies
Virtual Currencies
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Cryptocurrencies
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Source: Wayback Machine, 2007.
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In the future we may derive a larger percentage of our revenue from sources other than advertisements. In 2008 we began
implementing premium fee-based content on our applications and may expand those offerings as time goes on. We will
also consider converting several of our applications to a subscription-based pay model at some point in the next 12
months. Our decision to convert to a pay model and/or charge for premium content is dependent upon a variety of
factors. Some of these factors include how much activity there is on the applications, the nature of the payment
processing tools available on the underlying Social Networking websites, as well as our evaluation of the prioritization of
revenue versus growth at the time. Each application will be evaluated on a case-by-case basis in light of the above
factors. We have also begun exploring other revenue sources that have proven successful in the industry including
the introduction of a “virtual currency” on several of our applications and the sale of premium “virtual goods,” and
will consider incorporating these revenue sources into more of our applications in the future.
(Item 7)
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During the year, we enhanced our Membership Rewards® program with the introduction of new reward options designed
to meet customer demand and provide Cardmembers with greater breadth and variety as well as utility. For example, we
launched a new benefit that allows Membership Rewards points to be used for purchases on Amazon.com at the point of
sale. In addition to this redemption option at Amazon, we have added a number of new partners to the program that give
Cardmembers a broader range of opportunities to redeem points, such as Universal Studios Theme Parks, Four Seasons
Hotels and Resorts, Victoriaʼs Secret, Ruby Tuesday and Zynga. In addition, Cardmembers now have the ability to pay for
their annual membership fee with Membership Rewards points. We believe our Membership Rewards point bank is a
substantial asset and a competitive advantage, and is moving towards becoming a valued virtual currency.
(Item 1)
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Visa is a global payments technology company that connects
consumers, businesses, banks and governments around the
world, enabling them to use digital currency instead of
checks and cash. We provide financial institutions with
payment processing platforms that encompass consumer
credit, debit, prepaid and commercial payments.
(Item 7)
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Cryptocurrencies
Downloadable Content and Subscription, Time and Points
Cards. The proliferation of online game play through
Microsoft Xbox Live, the PlayStation Network and online PC
gaming sites has led to consumer demand for subscription,
time and points cards (which we call digital currency) and
digitally downloadable content for existing video games. We
sell a wide variety of digital currency and we have developed
technology to sell downloadable content in our stores and on
our U.S. Web site. We believe we are the leading retailer for
the sale of digital currency and downloadable content for
Xbox Live and the PlayStation Network.
(Item 7)
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Digital Currencies
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Downloadable Content and Subscription, Time and Points
Cards. The proliferation of online game play through
Microsoft Xbox Live, the PlayStation Network and online PC
gaming sites has led to consumer demand for subscription,
time and points cards (which we call digital currency) and
digitally downloadable content for existing video games. We
sell a wide variety of digital currency and we have developed
technology to sell downloadable content in our stores and on
our U.S. Web site. We believe we are the leading retailer for
the sale of digital currency and downloadable content for
Xbox Live and the PlayStation Network.
(Item 7) Yes, you can bill >$1,000/hr and still get
this wrong today.
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Our decision to accept bitcoins as a form of payment for
purchases on our website may subject us to exchange risk and
additional tax and regulatory requirements.
In January 2014, we began accepting bitcoins as a form of
payment for purchases on our website. Bitcoin is a digital currency
that uses cryptography to control the creation and transfer of
the currency between individual parties. Bitcoin is not considered
legal tender or backed by any government. Since inception in 2009,
bitcoins have experienced price volatility, technological glitches and
various law enforcement and regulatory interventions.
(Item 1A - Risk Factors)
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Source: Wayback Machine, 2014.
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Industry and Market Overview (Overview of Bitcoin)
Bitcoins are a digital or virtual currency that use
peer-to-peer technology to facilitate instant payments. A
Bitcoin is a type of alternative currency known as a
cryptocurrency, which uses cryptography for security.
Bitcoin issuance and transactions are carried out collectively
by the network, with no central authority, and allow users to
make verified transfers. Bitcoin is an accepted form of
payment by a growing, but still limited number of businesses,
while governments and regulators are beginning to create
more regulation and structure to legitimize it as a currency.
(Item 1)
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Virtual Currencies
Digital Currencies
Search Concepts
Cryptocurrencies
Industry and Market Overview (Overview of Bitcoin)
Bitcoins are a digital or virtual currency that use
peer-to-peer technology to facilitate instant payments. A
Bitcoin is a type of alternative currency known as a
cryptocurrency, which uses cryptography for security.
Bitcoin issuance and transactions are carried out collectively
by the network, with no central authority, and allow users to
make verified transfers. Bitcoin is an accepted form of
payment by a growing, but still limited number of businesses,
while governments and regulators are beginning to create
more regulation and structure to legitimize it as a currency.
(Item 1)
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Cryptocurrencies
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Digital Currencies
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Cryptocurrencies
Absent traditional banking relationships the marijuana industry may move to
alternate payment methods
In the event banks and credit card processors do not accept accounts or
transactions related to legal marijuana, it is possible that legal marijuana
businesses will seek alternative payment solutions, including but not limited to
digital currencies such as Bitcoin. There are risks inherent in Bitcoin, most
notably its volatility and security issues, however absent a better solution,
Bitcoin and or other digital currencies may become a viable option. If we were
required to accept Bitcoin and or other digital currencies as payment for rent,
we would have to adopt policies and protocols to manage the volatility risk and
exchange rate procedures. If we are not able to successful manage the volatility
and currency exchange of a digital currency, such as Bitcoin, our operations
and financial condition may be materially effected.
(Item 1A - Risk Factors)
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We were incorporated on December 1, 2010 under the laws of the
State of Nevada. Our principal executive offices are located at
Exchange, Ocho Rios, P.O., St. Anna, Jamaica, West Indies. Our
telephone number is 876-975-5471. Our fiscal year end is January
31.
We are only beginning our operations. We plan to specialize in the
sales, marketing and distribution of Smart TV boxes to home
consumers throughout the United States. Smart TV boxes are
devices that allow consumers to combine all of the benefits of the
Internet with the large size and high definition capabilities of TV
screens in the comfort of consumersʼ living rooms.
Our sole officer and director, Mr. David Bailey, does not have any
significant training or experience in the sales and distributions of
electronics or bringing such new products to market however, he
has a keen interest in electronics and our Smart TV business.
(Item 1)
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Our company is also looking into the opportunities within the
Bitcoin industry from different aspects within this new industry
which will range from mining for Bitcoins, from establishing kiosks, a
virtual wallet, to supplying mining equipment, and Bitcoin ATM
machines. Our company at this time, has not secured a deal and
may not find a viable opportunity going forward but it would like to
add this new line of business and technology to its existing line of
SmartBox solutions. If we enter the Bitcoin space we will also seek
professionals and management to run and operate this business.
Potential opportunities in Bitcoin include involvement in the Bitcoin
community for mining, development of supplying mining
equipment, and the development of an online portal. With the value
of Bitcoins recently going over $1,200, it makes sense to look at this
growing industry.
In addition, if we are successful in entering the Bitcoin business, we
will also be looking at securing from manufacturers a line of high
speed encryption processors for use in Bitcoin mining, research,
telecommunication and security applications.
(Item 1)
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Cryptocurrencies
Source: NASDAQ.
One year later…
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Cryptocurrencies
Source: NASDAQ.
One year later…
Source: Wayback Machine, 2016.
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Cryptocurrencies
Source: NASDAQ.
Source: Wayback Machine, 2016.
Today…
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Cryptocurrencies
Source: NASDAQ.
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In February 2014, the Company announced plans to change its strategic direction.
In addition, the Company announced that it had formed a new subsidiary, Bitcoin
Capital Corporation, to pursue early stage opportunities in Bitcoin and other
cryptocurrency. As of the filing of this report, Bitcoin Capital Corporation has not
begun operating and the Company has put this plan on hold indefinitely given
certain changes in the market for Bitcoins subsequent to that announcement. The
Company also announced that its board of directors had approved a name change
to AFPW Holdings, Inc. although the name change has not yet been completed.
(Item 1)
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Cryptocurrencies
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Cryptocurrencies
Competition
We compete in the global payments industry against all forms of payment
including:
● cash and checks;
● card-based payments, including credit, charge, debit, ATM and prepaid
products, and limited-use products such as private label;
● contactless, mobile, e-commerce and cryptocurrency; and
● other electronic payments, including wire transfers, electronic benefits
transfers, bill payments and automated clearing house payments.
(Item 1)
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EDGAR Histories 002 08/01/2016
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Virtual Currencies
Digital Currencies
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Cryptocurrencies
Alternative Payments Systems and New Entrants. As the global payments industry
becomes more complex, we may face increasing competition from emerging
payment providers. Many of these providers have developed payments systems
focused on online activity in e-commerce and mobile channels, however they
either have or may expand to other channels. These competitors include digital
wallet providers such as PayPal, AliPay and Amazon, merchants (via CurrenC, a
merchant-owned mobile commerce network), mobile operator services, services
such as mPesa, handset manufacturers, and cryptocurrencies. We compete with
these providers in some circumstances, but in some cases they may also be our
customers or partner with us.
(Item 1)
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Digital Currencies
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Cryptocurrencies
Alternative Payments Systems and New Entrants. As the global payments industry
becomes more complex, we may face increasing competition from emerging
payment providers. Many of these providers have developed payments systems
focused on online activity in e-commerce and mobile channels, however they
either have or may expand to other channels. These competitors include digital
wallet providers such as PayPal, AliPay and Amazon, merchants (via CurrenC, a
merchant-owned mobile commerce network), mobile operator services, services
such as mPesa, handset manufacturers, and cryptocurrencies. We compete with
these providers in some circumstances, but in some cases they may also be our
customers or partner with us.
(Item 1)
2021
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Cryptocurrencies
But wait.
One more…
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Cryptocurrencies
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Revenue Recognition for Payments and Other Fees
We enable Payments from our users to our Platform developers. Our users can
make payments on the Facebook Platform by using credit cards or other payment
methods available on our website. The primary process for these transactions is
through the purchase of our virtual currency. Our users then use this virtual
currency to purchase virtual and digital goods in games and apps from developers
on the Facebook Platform. Upon the initial sale of the virtual currency, we record
consideration received from a user as a deposit.
[...]
(Item 7)
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Revenue Recognition for Payments and Other Fees
[...]
When a user engages in a payment transaction utilizing the virtual currency for
the purchase of a virtual or digital good from a Platform developer, we reduce the
virtual currency balance of the user by the price of the purchase, which is a price
that is solely determined by the Platform developer. We remit to the Platform
developer an amount that is based on the total amount of virtual currency
redeemed less the processing fee that we charge the Platform developer for the
service performed.
[..]
(Item 7)
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Unique Filings
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EDGAR Histories 002 08/01/2016
Crypto on Wall Street, Part I
On next episode:
Crypto on Wall Street, Part II
Next time, weʼll move on to specific
implementations or networks, including:
● Bitcoin
● Ethereum
● Ripple
Weʼll see how public company attention has
narrowed or shifted over time among these
choices.

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EDGAR Histories, Episode #002 - Crypto on Wall Street, Part I: Crypto on Wall Street, Part I: “Currencies”

  • 1. 1 08/01/2016 EDGAR Histories Part I: “Currencies” Part II: Bitcoin, Ethereum, and Ripple Part III: Smart Contracts and Tokens Episode 002 Crypto on Wall Street, Part I: “Currencies”
  • 2. 2 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Currency Many look at “crypto” through the lens of currencies. But crypto wasnʼt the first “alternative” currency in the modern era. So, how - and when - did these frames align? (N.B.: the definition of currency and money has changed over time and varies by legal or regulatory context.)
  • 3. 3 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Cryptocurrencies Many look at “crypto” through the lens of currencies. But crypto wasnʼt the first “alternative” currency in the modern era. So, how - and when - did these frames align? (N.B.: the definition of currency and money has changed over time and varies by legal or regulatory context.) Search Concepts
  • 4. 4 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Cryptocurrencies Source: Annual reports (10-Ks) from domestic, listed companies. Date Range: 1994-2022 Excluded: non-listed US, Canadian, and other foreign filers. Search Concepts
  • 5. 5 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Cryptocurrencies Search Concepts Unique Filings Concept Unique Filings Virtual 175 Digital 210 Crypto 337
  • 6. 6 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Cryptocurrencies Search Concepts Unique Filings
  • 7. 7 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies
  • 8. 8 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies 2007
  • 9. 9 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies Source: TechCrunch. https://techcrunch.com/2007/04/29/iac-launches-zwinktopia-at-peak-of-virtual-world-hype/
  • 10. 10 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies IAC Consumer Applications and Portals. The IAC Consumer Applications and Portals business offers branded search toolbars, including the MyWebSearch and Ask-branded toolbars. These toolbars enable users to run search queries from any website using one of several popular search algorithms, including those of Ask destination search websites. Many of these toolbars offer additional benefits, such as pop-up blocking and quick access to personalized portal content. These toolbars can be installed free of charge, with the MyWebSearch toolbar being promoted by distribution through FunWebProducts (as described below). In addition, distribution arrangements are in place with several third parties to bundle the Ask-branded toolbar with their downloadable applications, in which cases related revenues are generally shared (net of amounts retained by paid listing providers) with these third parties. The IAC Consumer Applications and Portals business also offers several free, downloadable applications that include search functionality, together with a number of features designed to make online activities more personal, interesting and fun. FunWebProducts offers a suite of these features, which include, among others, Smiley Central, through which users can add emoticons to e-mails and instant messages, Webfetti, through which users can personalize their pages on various social networking websites and Zwinky, through which users can create avatars to express their persona on the web and design and update profile pages to share with friends. Zwinky also provides users with access to Zwinktopia, a virtual world where the users' avatars can interact through chat and other features and can purchase virtual items with virtual currency. (Item 1, Business Description, Media Services)
  • 11. 11 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies
  • 12. 12 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies Source: TechCrunch. https://techcrunch.com/2007/04/29/iac-launches-zwinktopia-at-peak-of-virtual-world-hype/
  • 13. 13 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies Source: Virtual Worlds Fandom. https://virtual-worlds.fandom.com/wiki/Zwinky
  • 14. 14 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies
  • 15. 15 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies
  • 16. 16 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies
  • 17. 17 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies
  • 18. 18 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies Source: Wayback Machine, 2007.
  • 19. 19 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies
  • 20. 20 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies In the future we may derive a larger percentage of our revenue from sources other than advertisements. In 2008 we began implementing premium fee-based content on our applications and may expand those offerings as time goes on. We will also consider converting several of our applications to a subscription-based pay model at some point in the next 12 months. Our decision to convert to a pay model and/or charge for premium content is dependent upon a variety of factors. Some of these factors include how much activity there is on the applications, the nature of the payment processing tools available on the underlying Social Networking websites, as well as our evaluation of the prioritization of revenue versus growth at the time. Each application will be evaluated on a case-by-case basis in light of the above factors. We have also begun exploring other revenue sources that have proven successful in the industry including the introduction of a “virtual currency” on several of our applications and the sale of premium “virtual goods,” and will consider incorporating these revenue sources into more of our applications in the future. (Item 7)
  • 21. 21 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies
  • 22. 22 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies During the year, we enhanced our Membership Rewards® program with the introduction of new reward options designed to meet customer demand and provide Cardmembers with greater breadth and variety as well as utility. For example, we launched a new benefit that allows Membership Rewards points to be used for purchases on Amazon.com at the point of sale. In addition to this redemption option at Amazon, we have added a number of new partners to the program that give Cardmembers a broader range of opportunities to redeem points, such as Universal Studios Theme Parks, Four Seasons Hotels and Resorts, Victoriaʼs Secret, Ruby Tuesday and Zynga. In addition, Cardmembers now have the ability to pay for their annual membership fee with Membership Rewards points. We believe our Membership Rewards point bank is a substantial asset and a competitive advantage, and is moving towards becoming a valued virtual currency. (Item 1)
  • 23. 23 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies
  • 24. 24 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Visa is a global payments technology company that connects consumers, businesses, banks and governments around the world, enabling them to use digital currency instead of checks and cash. We provide financial institutions with payment processing platforms that encompass consumer credit, debit, prepaid and commercial payments. (Item 7)
  • 25. 25 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies
  • 26. 26 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies
  • 27. 27 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Downloadable Content and Subscription, Time and Points Cards. The proliferation of online game play through Microsoft Xbox Live, the PlayStation Network and online PC gaming sites has led to consumer demand for subscription, time and points cards (which we call digital currency) and digitally downloadable content for existing video games. We sell a wide variety of digital currency and we have developed technology to sell downloadable content in our stores and on our U.S. Web site. We believe we are the leading retailer for the sale of digital currency and downloadable content for Xbox Live and the PlayStation Network. (Item 7)
  • 28. 28 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Downloadable Content and Subscription, Time and Points Cards. The proliferation of online game play through Microsoft Xbox Live, the PlayStation Network and online PC gaming sites has led to consumer demand for subscription, time and points cards (which we call digital currency) and digitally downloadable content for existing video games. We sell a wide variety of digital currency and we have developed technology to sell downloadable content in our stores and on our U.S. Web site. We believe we are the leading retailer for the sale of digital currency and downloadable content for Xbox Live and the PlayStation Network. (Item 7) Yes, you can bill >$1,000/hr and still get this wrong today.
  • 29. 29 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies
  • 30. 30 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies
  • 31. 31 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Our decision to accept bitcoins as a form of payment for purchases on our website may subject us to exchange risk and additional tax and regulatory requirements. In January 2014, we began accepting bitcoins as a form of payment for purchases on our website. Bitcoin is a digital currency that uses cryptography to control the creation and transfer of the currency between individual parties. Bitcoin is not considered legal tender or backed by any government. Since inception in 2009, bitcoins have experienced price volatility, technological glitches and various law enforcement and regulatory interventions. (Item 1A - Risk Factors)
  • 32. 32 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies
  • 33. 33 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Source: Wayback Machine, 2014.
  • 34. 34 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Industry and Market Overview (Overview of Bitcoin) Bitcoins are a digital or virtual currency that use peer-to-peer technology to facilitate instant payments. A Bitcoin is a type of alternative currency known as a cryptocurrency, which uses cryptography for security. Bitcoin issuance and transactions are carried out collectively by the network, with no central authority, and allow users to make verified transfers. Bitcoin is an accepted form of payment by a growing, but still limited number of businesses, while governments and regulators are beginning to create more regulation and structure to legitimize it as a currency. (Item 1)
  • 35. 35 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Industry and Market Overview (Overview of Bitcoin) Bitcoins are a digital or virtual currency that use peer-to-peer technology to facilitate instant payments. A Bitcoin is a type of alternative currency known as a cryptocurrency, which uses cryptography for security. Bitcoin issuance and transactions are carried out collectively by the network, with no central authority, and allow users to make verified transfers. Bitcoin is an accepted form of payment by a growing, but still limited number of businesses, while governments and regulators are beginning to create more regulation and structure to legitimize it as a currency. (Item 1)
  • 36. 36 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies
  • 37. 37 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Absent traditional banking relationships the marijuana industry may move to alternate payment methods In the event banks and credit card processors do not accept accounts or transactions related to legal marijuana, it is possible that legal marijuana businesses will seek alternative payment solutions, including but not limited to digital currencies such as Bitcoin. There are risks inherent in Bitcoin, most notably its volatility and security issues, however absent a better solution, Bitcoin and or other digital currencies may become a viable option. If we were required to accept Bitcoin and or other digital currencies as payment for rent, we would have to adopt policies and protocols to manage the volatility risk and exchange rate procedures. If we are not able to successful manage the volatility and currency exchange of a digital currency, such as Bitcoin, our operations and financial condition may be materially effected. (Item 1A - Risk Factors)
  • 38. 38 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies
  • 39. 39 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies We were incorporated on December 1, 2010 under the laws of the State of Nevada. Our principal executive offices are located at Exchange, Ocho Rios, P.O., St. Anna, Jamaica, West Indies. Our telephone number is 876-975-5471. Our fiscal year end is January 31. We are only beginning our operations. We plan to specialize in the sales, marketing and distribution of Smart TV boxes to home consumers throughout the United States. Smart TV boxes are devices that allow consumers to combine all of the benefits of the Internet with the large size and high definition capabilities of TV screens in the comfort of consumersʼ living rooms. Our sole officer and director, Mr. David Bailey, does not have any significant training or experience in the sales and distributions of electronics or bringing such new products to market however, he has a keen interest in electronics and our Smart TV business. (Item 1)
  • 40. 40 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Our company is also looking into the opportunities within the Bitcoin industry from different aspects within this new industry which will range from mining for Bitcoins, from establishing kiosks, a virtual wallet, to supplying mining equipment, and Bitcoin ATM machines. Our company at this time, has not secured a deal and may not find a viable opportunity going forward but it would like to add this new line of business and technology to its existing line of SmartBox solutions. If we enter the Bitcoin space we will also seek professionals and management to run and operate this business. Potential opportunities in Bitcoin include involvement in the Bitcoin community for mining, development of supplying mining equipment, and the development of an online portal. With the value of Bitcoins recently going over $1,200, it makes sense to look at this growing industry. In addition, if we are successful in entering the Bitcoin business, we will also be looking at securing from manufacturers a line of high speed encryption processors for use in Bitcoin mining, research, telecommunication and security applications. (Item 1)
  • 41. 41 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Source: NASDAQ. One year later…
  • 42. 42 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Source: NASDAQ. One year later… Source: Wayback Machine, 2016.
  • 43. 43 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Source: NASDAQ. Source: Wayback Machine, 2016. Today…
  • 44. 44 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Source: NASDAQ.
  • 45. 45 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies
  • 46. 46 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies In February 2014, the Company announced plans to change its strategic direction. In addition, the Company announced that it had formed a new subsidiary, Bitcoin Capital Corporation, to pursue early stage opportunities in Bitcoin and other cryptocurrency. As of the filing of this report, Bitcoin Capital Corporation has not begun operating and the Company has put this plan on hold indefinitely given certain changes in the market for Bitcoins subsequent to that announcement. The Company also announced that its board of directors had approved a name change to AFPW Holdings, Inc. although the name change has not yet been completed. (Item 1)
  • 47. 47 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies
  • 48. 48 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies
  • 49. 49 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Competition We compete in the global payments industry against all forms of payment including: ● cash and checks; ● card-based payments, including credit, charge, debit, ATM and prepaid products, and limited-use products such as private label; ● contactless, mobile, e-commerce and cryptocurrency; and ● other electronic payments, including wire transfers, electronic benefits transfers, bill payments and automated clearing house payments. (Item 1)
  • 50. 50 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Alternative Payments Systems and New Entrants. As the global payments industry becomes more complex, we may face increasing competition from emerging payment providers. Many of these providers have developed payments systems focused on online activity in e-commerce and mobile channels, however they either have or may expand to other channels. These competitors include digital wallet providers such as PayPal, AliPay and Amazon, merchants (via CurrenC, a merchant-owned mobile commerce network), mobile operator services, services such as mPesa, handset manufacturers, and cryptocurrencies. We compete with these providers in some circumstances, but in some cases they may also be our customers or partner with us. (Item 1)
  • 51. 51 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Virtual Currencies Digital Currencies Search Concepts Cryptocurrencies Alternative Payments Systems and New Entrants. As the global payments industry becomes more complex, we may face increasing competition from emerging payment providers. Many of these providers have developed payments systems focused on online activity in e-commerce and mobile channels, however they either have or may expand to other channels. These competitors include digital wallet providers such as PayPal, AliPay and Amazon, merchants (via CurrenC, a merchant-owned mobile commerce network), mobile operator services, services such as mPesa, handset manufacturers, and cryptocurrencies. We compete with these providers in some circumstances, but in some cases they may also be our customers or partner with us. (Item 1) 2021
  • 52. 52 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies But wait. One more…
  • 53. 53 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies
  • 54. 54 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies
  • 55. 55 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies
  • 56. 56 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies Revenue Recognition for Payments and Other Fees We enable Payments from our users to our Platform developers. Our users can make payments on the Facebook Platform by using credit cards or other payment methods available on our website. The primary process for these transactions is through the purchase of our virtual currency. Our users then use this virtual currency to purchase virtual and digital goods in games and apps from developers on the Facebook Platform. Upon the initial sale of the virtual currency, we record consideration received from a user as a deposit. [...] (Item 7)
  • 57. 57 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Search Concepts Cryptocurrencies Revenue Recognition for Payments and Other Fees [...] When a user engages in a payment transaction utilizing the virtual currency for the purchase of a virtual or digital good from a Platform developer, we reduce the virtual currency balance of the user by the price of the purchase, which is a price that is solely determined by the Platform developer. We remit to the Platform developer an amount that is based on the total amount of virtual currency redeemed less the processing fee that we charge the Platform developer for the service performed. [..] (Item 7)
  • 58. 58 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I Digital Currencies Virtual Currencies Cryptocurrencies Search Concepts Unique Filings
  • 59. 59 EDGAR Histories 002 08/01/2016 Crypto on Wall Street, Part I On next episode: Crypto on Wall Street, Part II Next time, weʼll move on to specific implementations or networks, including: ● Bitcoin ● Ethereum ● Ripple Weʼll see how public company attention has narrowed or shifted over time among these choices.