Business Plan

Asset Backed Crypto Currency

 Company

THIS IS A SAMPLE BUSINESS PLAN

This file was created by redacting an actual business plan The Plan Writers
wrote for a client. All client information and proprietary content has been
removed. As such, the business model, managers and financial pro forma herein
are entirely theoretical – only the structure of the plan itself and portions of the
market and industry research remain “real”.

www.planwriters.net

800-691-6202

BUSINESS PLAN 2
 Company

TABLE OF CONTENTS

TABLE OF CONTENTS 3
EXECUTIVE SUMMARY 4
OBJECTIVES 5
START-UP SUMMARY 6
TOTAL FUNDS ALLOCATED 7
COMPANY –GOLD BACKED CRYPTOCURRENCY 8
HOW IT WORKS 8
MARKET ANALYSIS SUMMARY: 9
CRYPTOCURRENCY – BLOCKCHAIN TECHNOLOGY 9
BENEFITS & CHALLENGE 10
MARKET ANALYSIS SUMMARY: 12
CRYPTOCURRENCY – ALTERNATE PAYMENT PLATFORM 12
SERVICE SEGMENTATION 12
USERS ANALYSIS 15
MARKET ANALYSIS SUMMARY: GOLD MINING INDUSTRY 16
OPERATIONAL STRATEGY 17
LEGAL STRUCTURE 17
LOCATION: MUNICIPALITY OF ESPINOSA, MINAS GERAIS STATE 17
BUSINESS MODEL & REVENUE STREAMS 17
PRICING STRATEGY 18
QUALITY OF PRODUCT & SUPPORT 18
TARGET MARKET 18
MILESTONES 19
COMPETITIVE ANALYSIS 20
COMPETITIVE ADVANTAGES 21
SWOT ANALYSIS 22
BARRIERS TO ENTRY / CHALLENGES 23
RISK ANALYSIS 24
MARKET NEEDS 24
KEY SUCCESS FACTORS 24
BRANDING AND MARKETING 25
GOALS 25
MARKETING CAMPAIGN 25
VALUATION ANALYSIS 27
REVENUE FORECAST 28
PROJECTED INCOME STATEMENT 30
PROJECTED CASH FLOW 31
PROJECTED BALANCE SHEET 32
APPENDIX: YEAR ONE FINANCIALS 33

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EXECUTIVE SUMMARY

Since the advent of bitcoin in 2009, cryptocurrencies have always been criticized for
not having a physical backing. Added to this, there is high volatility, one of the main
obstacles hindering mass adoption. Company Coin (also referred to as “the Company”
or simply “Company”) intends to disrupt the cryptocurrency landscape by launching a
fully gold backed, Ethereum based cryptocurrency and payment solution.
Furthermore, this will be the only coin in existence that will pay its coin holders a
dividend.

The proceeds from the ICO will be used as follows:

Phase I Phase II
Legal & Professional $1,250,000 Exploration & Development $15,000,000
Pre-Mining & Pre-Acquisition $1,800,000 Mining/Working Capital $5,000,000
Gold Mine Acquisition $35,000,000
Branding & Marketing $375,000
$38,425,000 $20,000,000

Solution: To mitigate challenges in the landscape, the concept of gold-backed cryptocurrency has emerged. These
currencies operate similarly to traditional cryptocurrencies, except that they are backed by tangible gold, via allocated or
unallocated gold storage. Stablecoins are a form of asset-backed cryptocurrency which was developed to address
cryptocurrencies’ extreme price swings. A stablecoin is a cryptocurrency whose value is “pegged” to assets with stable
value, including fiat currencies (e.g., USD, EUR, etc.) and precious metals. Gold-backed cryptocurrencies are special forms
of stablecoins, the value of which are pegged to that of gold. Combining the innovative capabilities of blockchain technology
with gold offers a convenient solution to the highly volatile cryptocurrency market. Furthermore, Company will be attached
to tangible operating mines which will eventually pay dividends to coin holders.

Business Model: The Company has devised a plan to offer a critical solution in the marketplace. The first phase of the plan
will enable the company to secure Company Gold Property, start gold mining and launch Company cryptocurrency as a
payment method and investment for customers. The company will also expand its offering by providing:

▪ B2B white label cryptocoin processing solution (turnkey for third parties) with a central exchange for Company or
Partner branded coins (may include OneGram, Lions gold, Xaurum, and Goldmint, among others)
▪ B2B Cashier enterprise solution
▪ A platform that allows users to create new cryptocurrencies based on partner requirements

The business model will allow the Company to generate revenue from initial setup fees, recurring monthly fees, and
transaction fees that will be 1%, based on the volume of activity processed through the payment platform. The revenue
stream also includes development services, monthly gateway, and subscription fees.

Target Market: Company anticipates that the target market of Company will be:
▪ Individuals and households who buy and hold the gold-backed cryptocurrency for value appreciation
▪ Merchants – online or brick-and-mortar merchants who begin accepting cryptocurrencies
▪ B2B enterprises, e-commerce solution providers, cryptocurrency providers, and crowdfunding ventures.

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OBJECTIVES

The purpose of this plan is to provide investors with the information necessary to evaluate the scope and future growth of
Company in the marketplace. In addition to serving as a roadmap for management, the plan will show that:

1) A significant market opportunity exists when analyzing the current market demands and competitive landscape;
2) The management team set in place is qualified to execute on a well-thought-out operational, marketing and sales
strategy, and
3) The correct capital structure will allow for a long-lasting, profitable business.

To achieve the Company’s objectives, Company is seeking

$37MM in total funding through an initial coin offering.
Company’s financial model shows consistent growth for the
brand over the next five years. By year five, plans call for the
Company to achieve $91 Million in annual gross revenue with
a net profit of $15.6 Million or approximately 17.15%.

Projected Operating Highlights By Year (1,000's)

Revenue Gross Margin EBITDA Net Profit

$100,000

$80,000

$60,000

$40,000

$20,000

$0

-$20,000

-$40,000
Year 1 Year 2 Year 3 Year 4 Year 5

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START-UP SUMMARY

The following tables and graphs detail the funding the business will need to bring the vision to reality. Start-up funding
includes all the expenditures, both start-up assets, and start-up expenses, incurred before the Company starts earning
revenue. The working capital element of the asset table represents the balance of cash at the beginning of Month 1 of the
financial projections.

Use of Start-up Funding

Expenses
Legal Fees & Professional-Phase I $1,250,000
Branding-Phase II $375,000
Website Development—Phase II $8,000
Office Supplies—Phase II $1,500
Pre-mining and Pre-acquisition-Phase I $1,800,000
Exploration & Development- Phase I $15,000,000
Contingent Expenses--Phase II $250,000
Total Start-up Expenses $18,684,500

Long-term Assets
Gold Mine Acquisition – Phase I $35,000,000
Computer Servers & Accessories – Phase $20,000
Office Furniture – Phase II $15,000
Contingent Assets – Phase II $500,000
Total Long-Term Assets $35,535,000

Short-Term Assets
Working Capital $5,000,000
Total Short-Term Assets $5,000,000

Total Expenses & Assets

Total Start-up Expenses $18,684,500
Total Start-up Assets $40,535,000
Total Funding Requirements $59,219,500

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Total Start-up Funding

Total Amount Being Requested $37,000,000
Total Funds Already Received $22,219,500
Total Funding $59,219,500
New Start-up Funding Being Requested
Investor Amount Being Requested $37,000,000
Total Amount Being Requested $37,000,000

Start-up Funding Already Received

Owner Contribution $22,219,500
Total Funding Already Received $22,219,500

Start-up Capital and Liabilities

Loss at Start-up (Start-up Expenses) ($18,684,500)

Total Funds Received & Requested $59,219,500
Cash Balance on Starting Date $5,000,000

As shown in the charts above and the graph below, the total start-up funding needed to implement this venture successfully
is $59MM. To date, the owner has invested $22.2MM in personal funds to create the Company’s brand. As depicted above,
$18.684MM will be used for start-up expenses; $35.5MM will be used to purchase long-term assets, and the remaining
balance of $5MM will be used for working capital.

TOTAL FUNDS ALLOCATED

Total Funding Total Utilization

Total Startup
Total Funding
Expenses;
Already
$18,684,500
Received,
$22,219,500

Total Amount
Being
Total Startup
Requested,
Assets,
$37,000,000
$40,535,000

Total Funding Already Received Total Amount Being Requested Total Startup Assets Total Startup Expenses

BUSINESS PLAN 7
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COMPANY –GOLD BACKED CRYPTOCURRENCY

Company will be an Ethereum blockchain-based, gold-backed cryptocurrency. Company is expected to share operating
profits by the possibility of offering quarterly or annual dividends. This will the only cryptocurrency in existence to produce
a return for investors.

The Coin will be offered through ICO at

first and then will be traded in the open
market as an acceptable exchange
currency. As the Company is fully backed
by Gold Mines in Company. Future gold
mines around the world may also be
purchased in the future as the Company
grows. It is expected that the value of
coins will increase over time and there will
be sufficient profits available for the
holders.

HOW IT WORKS

The Company will issue coin to

investors and users, where
value of the coin will be tied to
the market price of gold. Total
50,000,000 coins will be
released. This will generate
$200,000,000 in
capitalization, of which $37
million will be utilized for
acquire a gold mine. By
purchasing coin, each
investor becomes the owner
of a certain amount of gold,
which he will be able to
operate with in a
decentralized exchanger, built
on a blockchain technology.
Investors will be able to trade
coins, as well as exchange
them for gold. The value of the
coin will grow due to the increase of gold’s market value and investors can also redeemed or exchanged for gold, after that
those coins will be burned, so the ratio of coins to the amount of gold will vary and the price of the coin will grow.

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MARKET ANALYSIS SUMMARY:

CRYPTOCURRENCY – BLOCKCHAIN TECHNOLOGY

The blockchain is a type of online database technology that is shortly expected to transform the way industries operate. In
its simplest form, it is a ledger that holds a list of transactions that automatically update across a line of independent
computers. Developers and marketers key in on the increased efficiency, lower transaction costs and heightened security
that comes with operating through the blockchain. As the percentage of services conducted online is expected to increase
7.3 percentage points over the five years to 2022, IBISWorld expects that the influence of blockchain technology is only
beginning.

The major factor that drives the growth of blockchain technology

market is the growing demand for a faster and more secure
environment for payments & transactions by companies, leading to
high adoption of advanced programming platforms by firms. The
blockchain technology provides more secure and faster payment
transaction services with the help of cryptography technology which
keeps the data encoded until it reaches the receiver.

Globally, the market for blockchain technology is expected to grow at

a compound annual growth rate of about ~51% from 2016 to 2022.

TOP 10 CRYPTOCURRENCIES AS AT JUNE, 22 2019

BUSINESS PLAN 9
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New market Opportunities

According to Forbes, cryptocurrency was in the bear market in 2018. As of June 2019, this trend has reversed as bitcoin has
been one of the best performing assets. In June 2019, Bitcoin exceed $10,000 and analyst expect price to continue to rise.
This will have positive implications for alt coins and other emerging coins. No doubt, crypto assets and blockchain
technology are about to enter a sustained bull market as they gain robust mainstream adoption. Below are some recent
market trends.

▪ June 2019, Facebook announced its plans to introduce its own crypto currency, Libra.
▪ May 2019, Jack Dorsey, CEO of Twitter shared that how he's taking steps towards incorporating bitcoin
and other cryptocurrencies into his payments business, Square.
▪ May 2019 Fidelity announced that it's offering bitcoin trading to its institutional clients in a few weeks.
▪ The closely-watched bitcoin halvening is just a year away. This huge event, which reduces the supply
of bitcoin by half, is already sending bitcoin bulls into a frenzy.
▪ Amazon is exploring accepting bitcoin and creating its own crypto asset.
▪ Crypto asset-backed ETFs—a whole new investment class—are gearing up to come to market

BENEFITS & CHALLENGE

The following are the benefits and challenges of cryptocurrency:

Consumer & Merchant

• Improved support for the un- or under-banked: Besides a one-time, initial verification of identity
processed by financial institutions, individuals would need nothing other than a smart-phone or
computer to receive and transfer money. For example, paychecks could be deposited against an
individual’s public address with immediate access to the funds.
• Reduction in payments-related fraud: The traceable and auditable nature of the public ledger could
Pros
drive a reduction in fraudulent activity within the ecosystem. In a utopian vision, more secure and
traceable financial transactions could ultimately reduce crime, much as video surveillance has
proven to do in cities.
• Increased investment: There would likely be a large flow of new investment into technologies to
further improve the mass usability of the cryptocurrency.
• Increased cyber-theft: Consumers would have increased ownership and responsibility for their
Cons own money in this scenario, which could cause a rise in cyber-attacks/thefts of individuals’ private
keys and wallets..

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Financial Institutions

• Service Development: There could be a significant number of new opportunities for products
and services from financial services companies, which would not necessarily cannibalize other
Pros products and services. For example, banks could offer cryptocurrency wallet services and still
offer interest-bearing accounts (insured by the FDIC).
• Product Development: Financial institutions would likely experience significant disruption to
their traditional business models and products. Although traditional bank products (interest-
bearing accounts, demand deposits, loans, etc.) would still exist, banks might have to raise
interest rates or develop new products to attract end-users who now have the option of securely
storing their own money.
• Legacy infrastructure: Debit cards, cash transactions, credit card networks, ACH, wire transfers,
money orders, and other money transfer services would be the most directly impacted. Most of
the players offering these services today would have to significantly change their current
operating models as the adoption of state-sponsored cryptocurrencies increase. This is because
having the ability to transact through a public ledger would either be more efficient than
traditional services (e.g., a transaction is potentially faster, cheaper, and more secure than ACH)
Cons or slowly eliminate the demand for these services completely (e.g., cash).
• Infrastructure build: Banks would need to incur the costs of establishing the proper technology
infrastructure for processing and validating crypto-dollar transactions. Financial institutions
would do this to have access to a constant revenue stream from processing the ledger’s
transactions (especially considering the lower demand that will exist for some of the FIs’
traditional products); they would also have to follow the regulations set up by the government
regarding putting this infrastructure in place. The appropriate government agencies would need
to establish regulations, as well as build in the necessary alterations to the processing algorithm,
to ensure that all banks, regardless of size, could compete fairly to process transactions.
• Exchange efficiency: Foreign currency exchanges would probably become cryptocurrency-
enabled and, with lower costs to process -- and a larger consumer base -- FX spreads would be
reduced

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MARKET ANALYSIS SUMMARY:

CRYPTOCURRENCY – ALTERNATE PAYMENT PLATFORM

The following summary is from the Global Cryptocurrency Benchmark Study, 2018 (published in December 2018). Between
May and July 2018, the research team collected survey data from over 180 start-ups, established companies, and individuals
from 47 different countries across all major regions. The analysis focuses in particular on the following four key industry
segments: mining, exchange, storage, and payments.

SERVICE SEGMENTATION

The Crypto Asset

In the ten years since the publication of the Bitcoin whitepaper, an entire industry has evolved around cryptoasset systems
to build and maintain basic infrastructure as well as to facilitate the use of the platforms and their assets. While there are
several smaller segments comprising a great variety of additional services such as blockchain analytics, data, and ICO
services, this study will limit its focus to four key industry segments: mining, storage, exchange, and payments.

BUSINESS PLAN 12
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Mining Segment

Storage Segment
Mobile wallets remain the most supported format; web wallet support has significantly increased:

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Exchange Segment

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Payment Segment

USERS ANALYSIS

Conforming with popular narratives, survey data indicates that the majority of users – both established as well as new
entrants – are individuals and not business clients. Individuals can be hobbyists, retail investors, consumers, or users
seeking a better investment or payment alternative.

BUSINESS PLAN 15
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MARKET ANALYSIS SUMMARY: GOLD MINING INDUSTRY

CURRENT PERFORMANCE

The five years to 2018 have been volatile for the Gold and Silver Ore Mining industry. Industry revenue spiked until the end
of the previous five-year period, indicating this industry as one of the few that benefited from the financial crisis, as well
as the years of economic instability that followed. In times of economic turmoil, investors seek to buy safe-haven assets
such as gold and silver, causing gold and silver prices to surge. This price surge helped industry revenue growth during the
previous five-year period. Strong demand from domestic and international investors drove gold prices to all-time highs.
Furthermore, an undersupply of gold due to decreased industry production in the 2000s further contributed to the spike in
prices. The rapid rise in the price of gold, which accounts for more than 90.0% of industry revenue, helped propel sales
and profit.

However, as the general economy steadily improved during the current five-year
period, investors switched to more traditional asset classes, such as stocks, bonds,
and real estate.
Gold prices deteriorated as investors started to diversify investments outside of
gold and silver, reducing industry revenue in 2013, 2014 and 2015. Consequently,
industry revenue is estimated to have declined at an annualized rate of 2.4% to
$10.8 billion over the five years to 2018. Falling prices discouraged industry
operators, and several new projects faltered, leading to falling production volumes
and further industry contraction. Moreover, domestic manufacturers of electrical
equipment, electronic products, and jewelry, which comprise the primary markets for gold
and silver, have struggled with high import penetration and input costs over the past five years.
However, in 2016 and 2017, the fortunes of the industry reversed as both gold and silver prices registered increases for the
year, helping industry revenue increase to 10.4% and 7.7%, respectively. This trend is expected to continue in 2018, with a
projected growth of 0.8%. Therefore, volatile revenue conditions have plagued the industry throughout the five years.

INDUSTRY OUTLOOK

Demand for gold, the Gold and Silver Ore Mining industry’s main product, typically experiences strong growth in times of
economic uncertainty, as well as during severe crises. Over the five years to 2023, steady growth in economies in Europe
and the United States and expected higher growth rates in emerging markets would continue to lead to downward pressure
on prices of precious metals such as gold and silver. Additionally, revenue and profit for the industry will continue to heavily
depend on the output and price of gold, as it generates more than 90.0% of industry revenue. Gold prices are expected to
fall moderately over the next five years, while silver prices are anticipated to decrease an annualized 0.5%. As a result,
industry revenue is projected to fall slightly at an annualized rate of 0.2% to $10.7 billion, including an expected decline of
0.6% in 2019.

BUSINESS PLAN 16
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OPERATIONAL STRATEGY

LEGAL STRUCTURE

Company is a private Company registered in Country. Sharok Jacobi is the Chief Executive Officer of the Company.
The Company plans an Initial Coin Offering (ICO) by September 2019. The Company intends to distribute 50% of its net
profits in the form of dividends from Year-3 of its operations.

Company’s cryptocurrency will be fully backed by the gold mining licenses and concessions in the Municipality of
Espinosa.

LOCATION: MUNICIPALITY OF ESPINOSA, MINAS GERAIS STATE

The Company Gold Property is located in the Country.

BUSINESS MODEL & REVENUE STREAMS

Cryptocurrency is a digital asset that represents a platform for

exchange and uses cryptography to secure and verify transactions. The
underlying technology typically uses a digital, decentralized ledger system
through a peer-to-peer network, rather than a centralized exchange. New
units of cryptocurrency are produced through ‘mining’, which involves
participants computing and solving problems to verify transactions and
eventually add them to the blockchain, or the ledger, which contains a
record of all transactions that have ever occurred. The potential revenue
streams will be from following sources:

Cryptocurrencies solution for B2B Partners/Merchants:

▪ Initial setup fees: This will be the one-time fixed fee charged
from a potential customer.
▪ Recurring monthly fees: The Company will also formulate a volume slab structure to charge either recurring
monthly fees or transaction fees. Recurring fixed monthly fees will work best for small-sized merchants that be charged
each month based on volume slab. If the volume exceeds the minimum threshold, then the company will charge
transaction fees accordingly.
▪ Transaction fees: Transaction fees will be 1%, based on the volume of activity processed through the payment
platform.

BUSINESS PLAN 17
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White Label Services:

This includes B2B white label branded consumer/merchant services that will provide a customized solution (eWallet)
for enabling transactions with cryptocurrencies, in addition to other standard methods, such as deposits via wire transfer,
credit card network, etc. Following are the potential revenue streams under white label solutions:
▪ Full development services – Pricing will be determined on a case-by-case basis.
▪ Monthly gateway and subscription fees of solutions.

PRICING STRATEGY

The Company benefits from a lack of price competition because the industry is in its infancy stage. While pricing is
an important factor in attracting merchant partners, it is not enough to differentiate one operator from another. Merchants,
particularly small- to medium-sized businesses, are more likely to select a payment processing software platform that is
prominent among consumers and would attract the most users to their site. Competitive pricing is important from the
client’s perspective. The company will monitor and compare prices regularly, letting the market and customer dictate
perceived value, and the company will adjust accordingly.

QUALITY OF PRODUCT & SUPPORT

A varied and rapidly changing technological base demands agility in application deployments. Being a learning
organization, Company’s technology is advanced, and the efficacy of its products/solutions is measurable and quantifiable.
Effective and reliable product support will be the key to success for Company; the Company will also implement a
communication system that will be used to interact with clients and ensure the optimum utilization of their systems.
Company’s proactive approach, through continuous monitoring and reporting to clients before an issue arises, will make it
stand apart from its competitors in future.

TARGET MARKET

The target market of Company is divided into three segments:

1. Individuals who buy and hold the crypto currency for value appreciation
Based on the benchmark study, 6% of those with over $100,000 in annual household income own some
cryptocurrencies. In comparison, about 11% of those earning between $50,000 and $74,900 can say the same. And an even
higher percentage of those earning less than $50,000 claim to hold crypto: about 7%, according to the survey. As Company
is fully backed by gold so trust level for this currency will be much higher.
2. Direct to Consumer (B2C) Merchant Customers
Online or brick-and-mortar merchants who want to easily begin accepting cryptocurrencies as a payment method
from their customers. This segment includes merchants that conduct business over the Internet. Merchants may be small,
medium or large in size.
▪ Small Merchants: A small merchant is categorized as a business that generates less than $5.0 million in electronic
sales volumes annually. Most small businesses deal with third-party processors, rather than merchant banks, as these
processors are easier to set up an account with and can provide more attention and customizable platform integration
features.

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▪ According to the research, small merchants account for 41.4% of Online Payment Processing Software Industry
revenue, which equals $8.1 billion.
▪ Medium to Large Merchants: Medium- to large-sized merchants account for about 53.8% of Online Payment
Processing Software Industry revenue. While there are many more small businesses than there are large ones, large
businesses have a high volume of sales transactions, which generates significant revenue for the industry. While many
payment-processing firms offer discounted percentage rates for high sales volumes, large businesses may find pricing
agreements that involve an initial setup fee and recurring monthly fees more attractive.

3. Business to Business (B2B) Customers

The target market under the B2B segment includes businesses that facilitate other businesses/customers. Under
this segment, the company’s cryptocurrency that can be integrated into the system as a means of exchange:
▪ Enterprise: Enterprise is defined as Internet sales in excess of $1B annually. These potential accounts can be
advised to build their branded cryptocurrency solution as a payment method into their Internet storefront and make
introductions to other Fortune 500 companies, such as Best Buy, Canadian Tire, Popeye’s, Metro Inc., and Shoppers Drug
Mart Corp.
▪ E-commerce Solution/Software Providers: Examples in this segment include BigCommerce, Shopify, NetSuite,
Magento, WooCommerce, Wix, Weebly, and BloomKit
▪ Cryptocurrency Providers: Cryptocurrency providers/enablers build and release cryptocurrencies and simple
wallets for customers who require more advanced wallet / back-office features to enable e-commerce transactions such
as Vanbex, CryptoLife Development, CoinFabrik, and Sara Technologies Inc.
▪ Crowdfunding Ventures: Crowdfunding is the practice of funding a project or venture by raising many small
amounts of money from a large number of people, typically via the Internet. This includes Kickstarter, Indiegogo, RocketHub,
FundRazr and other Investment funds.

MILESTONES

The tentative milestones are shown below. Management reserves the right to make changes to this schedule as needed.

Obtain Funding - Phase I

Acquisition of Gold Mine…
Pre Mining
Software/App Development
First Launch
Obtain Funding - Phase II
Pre-Marketing
Hire Additional Staff
Full Launch
Achieve 100,000 active…
Duration (days),
Achieve $6.9 million in Gross… Start Date, 04/21/2020
365.00
May-19 Aug-19 Dec-19 Mar-20 Jun-20 Sep-20 Jan-21 Apr-21

BUSINESS PLAN 19
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COMPETITIVE ANALYSIS

The identified competitors are described below:

Digix Gold Token Karatgold coin Unikoin Gold GoldCoin

Trading Name DGX KBC UKG GLD

Current Price $46.452 $0.0854 0.0221$ 0.0509$
Gold Equivalent 1 Gm.
Total Supply 83 100 DGX 12,000,000,000 KBC 1,000,000,000 UKG 4,658,536 GLD
Exchange Listing BitFinex, EthFinex LBank, CoinBene, Bit-Z, UPbit, DDEX, Bittrex Cryptopia
DigiFinex
Top Holders 50 (18.56%) p2pb2b (22.71%) UPbit (51.7%)
Market Cap $3,263,021 $631,040,422 $3,166,129 $2,120,903
Trade volume 24h 23,180$ 3,304,700$ 22,661$
Minimal price for 24h 45.940$ 0.0617$ 0.0211$
Maximum price for 24h 46.823$ 0.0910$ 0.0240$
Market cap rank #610 #23 #623 #723

Other Gold-Backed Cryptocurrencies:

AurusGold BullionCoin Currensee

AgAu Airgead Anthem Gold (AGLD) AssetBase AurumCoin (AU)
(AWG) (XAAU) (CUR)

Cyronium Darico DigixGlobal (DGX DinarDirham Flashmoni Gold Bits

Doradocoin Egold (EGD)
(CYRO) (DEC) and DGD) (DNC) (OZG OZT) Coin (GBC)

GoldCrypto Goldmint HelloGold Karatcoin

G Coin GoldMineCoin (GMC) GOLDUSA (GOLD) IC3 Cubes (IC3)
(AUX) (MNTP) (Goldx) (KCG)
one gram Eurocrypt Petunia Puregold (PGT Royal Mint Gold Sudan Gold
OZcoinGold (OzGLD) Reales (RLS)
(OGC) (OCG) (PGX) and PGG) (RMG) Coin (SGC)

BUSINESS PLAN 20
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Historical Price of Gold since 2019 (Price / Ounce)

COMPETITIVE ADVANTAGES

The following is a listing of the primary competitive advantages of the Company upon entering the market.

▪ Comprehensive and scalable solution and upside potential of Company

▪ Cryptocurrency is fully backed by gold, stable only as to the downside, huge opportunity for upwards
increase
▪ The Company intends to offer 50% dividend from Year – 3 of operations
▪ Expertise in diverse, high-growth emerging markets
▪ Expertise in uncovering and anticipating business needs of growing organizations
▪ Expertise in transacting business solutions into a technology platform
▪ The Company will constantly update the product/solution range to stay ahead of trends in the industry

BUSINESS PLAN 21
 Company

SWOT ANALYSIS

The following is a listing of the key strengths and weaknesses of Company, as well as the opportunities and threats that
exist within the marketplace.

Strengths Weaknesses

▪ Huge market opportunity

▪ Fully backed with gold ▪ Company needs funding and working capital for a
▪ Experience and knowledge of the leadership team successful launch
and founder ▪ As a new business, the Company must build its
▪ Potential strong sales and marketing credibility
▪ Offering solutions of cryptocurrencies payment ▪ High exposure to fraud: An electronic payment
from basic to advanced features, including API integration system requires a very strong technical support and
of third-party services, such as banks and credit card protection system considering the risk of fraud. Various
companies phishing and hoax attacks on such instances take away
▪ Ease of use: Company will be easy to use for the consumers’ confidence in the system
customers as well as the merchants ▪ The system is dependent on Internet connectivity
▪ Right time to enter the market as well as digital literacy. This becomes a constraint in
▪ Team with significant experience in customer growth over emerging and less developed countries
service and risk/fraud management for online processing ▪ Cryptocurrencies are in their infancy stage
▪ The company proposes a sales pipeline for B2B
customers

Opportunities Threats

▪ Increasing popularity of cryptocurrencies and ▪ Payment platforms are vulnerable to hacking

blockchain technology attempts
▪ Increase in acceptance of cryptocurrencies as an ▪ Imposition of tax on cryptocurrencies will lead to
alternate payment mode reducing the demand as an alternate payment mode
▪ Possessing exclusive mineral mining rights in ▪ Lack of regulation regarding
Company. cryptocurrency/virtual currency

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BARRIERS TO ENTRY / CHALLENGES

Barriers to entry
Cryptocurrency as an industry is in its infancy, but the barriers to entry are complex. Without a solid understanding of the
premise of blockchain or the platforms on which cryptocurrencies are bought and exchanged, it can be difficult to enter
the marketplace, and even harder to transact in it.

New entrants must have a fundamental knowledge of development, online financial transactions and securing sensitive
information on the Internet. This necessitates a workforce of highly skilled employees and an investment in an
infrastructure to provide a solution for a cryptocurrency payment platform. Furthermore, regardless of how secure a new
entrant’s payment platform is, lesser-known operators may struggle to gain the trust of merchants and consumers.

This barrier to entry reinforces itself: operators cannot gain the trust of businesses and consumers without establishing a
well-known brand name, and operators cannot establish a well-known brand name without attracting a large user base of
consumers and merchant partners.

Challenges
According to the Global Cryptocurrency Benchmarking Study, the following are the challenges for the cryptocurrency
1

payment service providers or platform.

The biggest challenge for nearly all cryptocurrency payment service providers constitutes the difficulty of obtaining and
maintaining relationships with banking institutions and money transfer operators (MTOs). Only companies that provide
money transfer services indicate that the high cost of regulatory compliance poses the biggest challenge to their
operations.

An interesting observation is that ‘national currency-focused’ money

transfer services and B2B payment platforms are more concerned by
exchange rate risk than ‘cryptocurrency-focused’ merchant services
and general-purpose cryptocurrency platforms. An explanation could
be that the latter often also operate a cryptocurrency exchange in
addition to their payment activities that can be used to help manage
exchange rate risk.

Of all payment categories, companies providing B2B payments are

most concerned with competition from both FinTech firms and
traditional MTOs, whereas entities providing merchant services and
general-purpose cryptocurrency platforms show no particular concern
with regards to these factors. Companies providing money transfer
services seem to be slightly concerned by the competition from
traditional MTOs.

1Global Cryptocurrency Benchmarking Study 2017 by University of Cambridge, Judge Business School - The study gathered survey data from nearly 150
cryptocurrency companies and individuals, and it covers 38 countries from five world regions. The study details the key – Obtained at
https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alternative-finance/downloads/2017-global-cryptocurrency-benchmarking-study.pdf

BUSINESS PLAN 23
 Company

RISK ANALYSIS

As the prominence of online payment processing and cryptocurrency increases, the industry will experience significant
growth, leading to an elevated level of volatility. Similarly, as the percentage of services conducted online increases, the
market for this industry’s products will also increase, driving revenue growth. As growth in the number of mobile Internet
connections and the percentage of services conducted online slows, industry revenue growth will slow as well. In general,
industry revenue is also affected by general economic conditions and trends in financial activity. When per capita
disposable income decreases, consumers cut back on shopping, negatively affecting the amount of e-commerce
conducted as well as industry revenue.

The company will not focus on any specific coins or trading and will support transactions for the most popular coins. In
order to minimize the risk, the company will:
▪ Continue to improve/upgrade service as blockchain technologies advance.
▪ Focus on a B2B and Direct to Consumer service. The company already has a sales pipeline for B2B customers, thus
not relying on any specific/major player B2B customer.
▪ Focus on add-on services, such as implementation of cold storage procedures that will also allow consumers to
store their private keys.

MARKET NEEDS

The current landscape is filled with businesses that provide a relatively limited scope of services in blockchain technology
and cryptocurrency. Many cryptocurrencies have been launched with simple wallet solutions, allowing users to
buy/sell/trade cryptocurrencies with other users, but these simple wallets do not provide the advanced set of features
required by merchants; there is no significant market leader today that provides a wide array of services in blockchain
technology. However, the demand for cryptocurrency is increasing, and people are oriented toward it for its specific
features; for instance, it is decentralized and has no need of a third party. Moreover, customers place more reliance on
cryptocurrencies that are fully backed by assets, e.g. gold. Thus, the market is in need of the service line that is being
offered by Company. With this industry projected to have strong growth trends over the course of the next several years,
the need for a solution that keeps the B2B and B2C industry engaged will rise exponentially. Market demand is precisely the
area that Company will address and one that will allow the Company to remain relevant well into the future.

KEY SUCCESS FACTORS

▪ Developing relationships with online retailers

o Online payment processing platforms are only as useful as the number of merchants that partner with
them. By developing relationships with online retailers, the company will attract a large number of
merchant partners to experience stronger adoption rates of its service.
▪ Ability to quickly adopt new technology
o Being a learning organization, Company International Inc.’s technology is advanced; however, the
company will gradually update the solutions according to the latest technology available.
▪ Access to highly skilled workforce
o Implementing and maintaining an online payment platform necessitates a highly skilled, technical
workforce with a solid knowledge of website development and online financial transactions.
▪ Ensure pricing policy is appropriate
o Please refer to the above pricing strategy.
o rocedures are important components of solutions of Company that will make the company more
trustworthy.

BUSINESS PLAN 24
 Company

BRANDING AND MARKETING

The Company will also fervently track any direct or indirect competition in the marketplace to ensure it stays on top of
cutting-edge industry trends and opportunities. Moving forward, Company will strive to meet the following goals:

GOALS

▪ Become a recognized market leader in the industry.

▪ Develop a strong risk/fraud management model.
▪ Expand the user base (individuals, merchants and partners).
▪ Propagate client base and highlight large/famous corporate consumers to win new clients. Pitching client success
stories and testimonials will be a highly effective tool.

MARKETING CAMPAIGN

Marketing for Company will be done through a marketing mix that will focus on Internet and networking. Marketing will
include the following channels:

Networking:

▪ Networking at industry events

▪ Attending trade shows, seminars, and workshops related to blockchain and cryptocurrencies.
▪ Promotional connection with other businesses for reciprocal marketing opportunities, such as e-commerce and
brick-and-mortar stores.

Social Media & Internet:

▪ Maintain and use the whole array of social and professional network platforms, such as Facebook, Twitter,
LinkedIn, Instagram, Digg, StumbleUpon, and Reddit.
▪ Utilize advertising to drive free seminars. Advertising media will include LinkedIn, Google AdWords, and other
relevant social media networks.
▪ Update website continually to make it attractive and informative for customers, using modern, fast, and
responsive design methods that will feature SEO.

BUSINESS PLAN 25
 Company

▪ YouTube and video blogging will be used by the Company to drive sales by posting relevant and informative videos
and infomercials. A YouTube channel will be created and optimized for the benefits of SEO, which will accelerate the process
of reaching targeted customers. YouTube pay-per-click is also currently very cost-effective, as the majority of the market
has not yet taken advantage of this marketing channel. This method has been known to bring enormous attention and
short-term sales to other companies.
▪ Initiate marketing campaigns (lead generation campaign) that will target small and medium-sized merchants and
store owners.

Direct:

▪ Employ a dedicated marketing team to target large accounts.

▪ One-on-one demonstration of solution features for potential large companies.
▪ Arrange free and paid seminars and workshops on blockchain technology and cryptocurrency.
▪ Hold one-on-one meetings with client prospects to understand client needs and offer catered solutions for
alternate payment mode.
▪ Press releases will alert relevant media channels of the Company’s offerings, business updates, and other
newsworthy items. Media coverage will increase the Company’s credibility and recognition among the public
and key industry decision makers. The company will use PR.com, and newswire.com to publish news for the
pre- and post- launch, investor funding, and other corporate announcements.

BUSINESS PLAN 26
 Company

VALUATION ANALYSIS

Below is a valuation scenario for Company. The assumed company valuation was based on a multiplier of 21 multiplied by
EBITDA. Management expects that investors will be able to cash out on their investment in the Company when it generates
sufficient profits to repay them. The Company expects to achieve this goal by the end of Year 5.

Projection

Company Valuation* Outstanding Coins Per Coin Valuation

After Investment
$250,000,000 50,000,000 $5.0000
Group

Proposed Coins Per Coin Dollar Investment

Investment Group (IG) 50,000,000 $5.0000 $250,000,000

50,000,000 Total Coins - ROI for the IG is as follows:

Company Valuation Per Coin Price ROI for IG

Year 2 $300,000,000 $6.00 120%

Year 3 $350,000,000 $7.00 140%
Year 4 $415,047,500 $8.30 166%
Year 5 $493,705,800 $9.87 197%

Number of Coins Per Coin Price Proceeds from Sale

(for IG) (for IG)

Year 2 50,000,000 $6.00 $300,000,000

Year 3 50,000,000 $7.00 $350,000,000
Year 4 50,000,000 $8.30 $415,047,500
Year 5 50,000,000 $9.87 $493,705,800

BUSINESS PLAN 27
 Company

REVENUE FORECAST

The following is a five-year revenue forecast. Direct costs include all costs that can be directly tied to revenue and include
“cost of goods/services.”
Revenue Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Proceeds from Coin offerings
$4,500,000 $5,500,000 $1,000,000 $1,500,000 $7,500,000
(value of coins)
Direct to consumer wallet
$400,000 $4,860,000 $24,000,000 $31,500,000 $45,360,000
transactions
B2B revenue share wallet
$800,000 $4,860,000 $16,800,000 $22,680,000 $37,800,000
transactions
B2B licensing/services/setup $1,200,000 $288,000 $384,000 $432,000 $528,000
Total Revenue $6,900,000 $15,508,000 $42,184,000 $56,112,000 $91,188,000

Direct Cost of Revenue

D2C marketing (Sparkit + other
$1,250,000 $1,603,800 $7,920,000 $10,395,000 $14,968,800
campaigns)
D2C affiliate commission (based
$60,000 $729,000 $3,600,000 $4,725,000 $6,804,000
on rev share, approx 15%)
D2C user rewards (based on rev
$16,000 $194,400 $960,000 $1,260,000 $1,814,400
share, approx 4%)
Payment processing fees (approx.
$625,000 $4,050,000 $13,500,000 $13,725,000 $21,600,000
2.5% with 3rd parties+fraud)
24/7 online customer
$160,000 $388,800 $1,224,000 $1,354,500 $2,079,000
support/security + maintenance
Subtotal Cost of Revenue $2,111,000 $6,966,000 $27,204,000 $31,459,500 $47,266,200
Revenue Forecast Assumptions: (1) Revenue and costs are projected on the basis of following assumptions:

BUSINESS PLAN 28
 Company

Revenue Assumption (‘000)

Variable Year 1 Year 2 Year 3 Year 4 Year 5

DIRECT TO CONSUMER METRICS

Average number of active monthly users 50,000 150,000 500,000 625,000 900,000
Average transaction per user/month 1.0 1.5 2.5 3.0 3.0
Average transaction value per user/month $50 $100 $100 $100 $100
Percentage of transaction with credit cards
5.00% 25.00% 20.00% 15.00% 10.00% 10.00%
or 3rd party wallets.
Percentage of transaction with crypto
1.00% 75.00% 80.00% 85.00% 90.00% 90.00%
currencies.
Average gross revenue earned per
$1 $2 $2 $1 $1
transaction (incl. processing)

B2B USER METRICS

9 20 22 25 40
B2B Partners & ICOs
Average number of active monthly users 100,000 300,000 700,000 900,000 1,500,000
Average transaction per user/month 1.0 1.5 2.5 3.0 3.0
Average transaction value per user/month $100 $100 $100 $100 $100
Percentage of transaction with credit cards
5.00% 25.00% 20.00% 15.00% 10.00% 10.00%
or 3rd party wallets.
Percentage of transaction with crypto
1.00% 75.00% 80.00% 85.00% 90.00% 90.00%
currencies.
Average gross revenue earned per
50.00% $1 $1 $1 $1 $1
transaction (incl. processing)

BUSINESS PLAN 29
 Company

PROJECTED INCOME STATEMENT

Pro Forma Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue $6,900,000 $15,508,000 $42,184,000 $56,112,000 $91,188,000
Subtotal Cost of Revenue $2,111,000 $6,966,000 $27,204,000 $31,459,500 $47,266,200

Gross Margin $4,789,000 $8,542,000 $14,980,000 $24,652,500 $43,921,800

Gross Margin/Revenue 69.41% 55.08% 35.51% 43.93% 48.17%

Expenses
Wages, payroll, consulting expenses (incl.
$468,750 $1,875,000 $3,750,000 $5,000,000 $7,500,000
taxes)
Outside services (incl. custom dev, directors,
$550,000 $150,000 $250,000 $400,000 $500,000
etc.)
Office supplies, repairs, etc. $18,000 $36,000 $48,000 $60,000 $72,000
Accounting & legal $80,000 $140,000 $180,000 $220,000 $240,000
Rent $36,000 $60,000 $120,000 $120,000 $180,000
Software purchase $770,000 $25,000 $50,000 $100,000 $150,000
Telephone $10,000 $20,000 $30,000 $35,000 $40,000
Utilities $10,000 $20,000 $30,000 $35,000 $40,000
Insurance (business, user balances, etc.) $40,000 $100,000 $300,000 $1,000,000 $2,000,000
Travel/employee expenses $60,000 $120,000 $220,000 $260,000 $330,000
Startup Cost $18,684,500 $0 $0 $0 $0
Date center fees $40,000 $120,000 $180,000 $264,000 $360,000
Fixed marketing (B2B & B2C & IR) $700,000 $2,000,000 $3,000,000 $5,000,000 $8,500,000
Miscellaneous $40,000 $100,000 $200,000 $300,000 $500,000
Depreciation $3,555,750 $3,571,500 $3,596,500 $3,626,500 $3,681,500
Total Operating Expenses $25,063,000 $8,337,500 $11,954,500 $16,420,500 $24,093,500

Profit Before Interest and Taxes ($20,274,000) $204,500 $3,025,500 $8,232,000 $19,828,300
EBITDA ($16,718,250) $3,776,000 $6,622,000 $11,858,500 $23,509,800
Taxes Incurred $0 $0 $0 $0 $4,186,194

Net Profit ($20,274,000) $204,500 $3,025,500 $8,232,000 $15,642,106

Net Profit/Revenue -293.83% 1.32% 7.17% 14.67% 17.15%

BUSINESS PLAN 30
 Company

PROJECTED CASH FLOW

The following depictions of Company’s projected cash flow show that the Company expects to maintain sufficient cash
balances over the five years of this plan.

Pro Forma Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5

Cash Received
Revenue $6,900,000 $15,508,000 $42,184,000 $56,112,000 $91,188,000
Owner Contribution $22,219,500 $0 $0 $0 $0
Proceeds from Investor $37,000,000 $0 $0 $0 $0
Subtotal Cash Received $66,119,500 $15,508,000 $42,184,000 $56,112,000 $91,188,000

Expenditures
Expenditures from Operations
Bill Payments $4,360,761 $11,280,883 $33,565,772 $43,515,318 $69,519,359
Subtotal Spent on Operations $4,360,761 $11,280,883 $33,565,772 $43,515,318 $69,519,359

Additional Cash Spent

Investor Repayment $0 $0 $0 $0 $0
Start-up Costs $18,684,500 $0 $0 $0 $0
Purchase Long-term Assets $35,565,000 $150,000 $250,000 $300,000 $550,000
Other Current Assets $150,000 $250,000 $150,000 $160,000 $165,000
Dividends Paid $0 $0 $1,512,750 $4,116,000 $7,821,053
Subtotal Cash Spent $58,760,261 $11,680,883 $35,478,522 $48,091,318 $78,055,412

Net Cash Flow $7,359,239 $3,827,118 $6,705,478 $8,020,682 $13,132,588

Cash Balance $7,359,239 $11,186,357 $17,891,834 $25,912,516 $39,045,104
Cash Flow Assumptions: (1) Proceeds from investor assume funds were received in the amount of $37 million.

Year 1 Cash
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000 Net Cash Flow
$2,000,000 Cash Balance
$1,000,000
$0
-$1,000,000
Month 1

Month 3
Month 2

Month 4

Month 5

Month 6

Month 8
Month 7

Month 9

Month 10

Month 11

Month 12

BUSINESS PLAN 31
 Company

PROJECTED BALANCE SHEET

A balance sheet is a snapshot of Company’s financial condition. The balance sheet has three parts: assets, liabilities and
ownership equity.
Pro Forma Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5

Assets
Current Assets
Cash $7,359,239 $11,186,357 $17,891,834 $25,912,516 $39,045,104
Other Current Assets $150,000 $400,000 $550,000 $710,000 $875,000
Total Current Assets $7,509,239 $11,586,357 $18,441,834 $26,622,516 $39,920,104
Long-term Assets
Long-term Assets $35,565,000 $35,715,000 $35,965,000 $36,265,000 $36,815,000
Accumulated Depreciation $3,555,750 $7,127,250 $10,723,750 $14,350,250 $18,031,750
Total Long-term Assets $32,009,250 $28,587,750 $25,241,250 $21,914,750 $18,783,250

Total Assets $39,518,489 $40,174,107 $43,683,084 $48,537,266 $58,703,354

Liabilities and Capital
Current Liabilities
Accounts Payable $572,989 $1,024,107 $3,020,334 $3,758,516 $6,103,551
Subtotal Current Liabilities $572,989 $1,024,107 $3,020,334 $3,758,516 $6,103,551

Total Liabilities $572,989 $1,024,107 $3,020,334 $3,758,516 $6,103,551

Paid-in Capital $59,219,500 $59,219,500 $59,219,500 $59,219,500 $59,219,500
Retained Earnings $0 ($20,274,000) ($21,582,250) ($22,672,750) ($22,261,803)
Earnings ($20,274,000) $204,500 $3,025,500 $8,232,000 $15,642,106
Total Capital $38,945,500 $39,150,000 $40,662,750 $44,778,750 $52,599,803
Total Liabilities and Capital $39,518,489 $40,174,107 $43,683,084 $48,537,266 $58,703,354
Net Worth $38,945,500 $39,150,000 $40,662,750 $44,778,750 $52,599,803

BUSINESS PLAN 32
 APPENDIX: YEAR ONE FINANCIALS

Month 1 Month 2 Month 3 Month 4 Month 5 Month6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Revenue
Proceeds from Coin
$0 $0 $0 $180,000 $360,000 $450,000 $495,000 $495,000 $540,000 $585,000 $675,000 $720,000
offerings (value of coins)
Direct to consumer wallet
$0 $0 $0 $16,000 $32,000 $40,000 $44,000 $44,000 $48,000 $52,000 $60,000 $64,000
transactions
B2B revenue share wallet
$0 $0 $0 $32,000 $64,000 $80,000 $88,000 $88,000 $96,000 $104,000 $120,000 $128,000
transactions
B2B
$0 $0 $0 $48,000 $96,000 $120,000 $132,000 $132,000 $144,000 $156,000 $180,000 $192,000
licensing/services/setup
Total Revenue $0 $0 $0 $276,000 $552,000 $690,000 $759,000 $759,000 $828,000 $897,000 $1035,000 $1104,000

Direct Cost of Revenue

D2C marketing (Sparkit +
$0 $0 $0 $50,000 $100,000 $125,000 $137,500 $137,500 $150,000 $162,500 $187,500 $200,000
other campaigns)
D2C affiliate commission
(based on rev share, approx $0 $0 $0 $2,400 $4,800 $6,000 $6,600 $6,600 $7,200 $7,800 $9,000 $9,600
15%)
D2C user rewards (based
$0 $0 $0 $640 $1,280 $1,600 $1,760 $1,760 $1,920 $2,080 $2,400 $2,560
on rev share, approx 4%)
Payment processing fees
(approx. 2.5% with 3rd $0 $0 $0 $25,000 $50,000 $62,500 $68,750 $68,750 $75,000 $81,250 $93,750 $100,000
parties+fraud)
24/7 online customer
support/security + $0 $0 $0 $6,400 $12,800 $16,000 $17,600 $17,600 $19,200 $20,800 $24,000 $25,600
maintenance
Subtotal Cost of Revenue $0 $0 $0 $84,440 $168,880 $211,100 $232,210 $232,210 $253,320 $274,430 $316,650 $232,760

BUSINESS PLAN 33