TaaS Token Sale (ICO): A closed-end crypto-asset fund - Smith + Crown

TaaS Token Sale (ICO): A closed-end crypto-asset fund

TaaS (Token as a Service) is selling membership tokens in a closed-end crypto-asset fund. Tokenholders get 50% of the profits.

Note: The legal terms of the sale indicate that US citizens and permanent residents are not allowed to participate.

Project Description

TaaS (Token as a Service) is selling membership tokens in a closed-end crypto-asset fund. The TaaS token will entitle holders to 50 percent of the funds profits, paid out using a profit-sharing Ethereum smart contract. Dividends are paid out on a quarterly basis.

TaaS leverages the transparency of the Ethereum blockchain and of exchanges that have Proof-of-Solvency implemented (auditable cold storage reserves) such as Poloneix and Kraken,  to develop “Cryptographic Audit” technology. Cryptographic Auditing will allow token holders to monitor the performance of the fund in near real time without prior blockchain experience. TaaS fund’s use of proceeds will be simultaneously audited by HLB International, a private accounting firm.

The fund itself will be composed of investments in crypto-assets including Bitcoin. A minimum of 10 to 30 percent of the portfolio will be composed of investments in Bitcoin. The Bitcoin reserve will be used to provide stability to the fund and liquidity to facilitate dividends distributions. The founding team will act as the fund’s managing partner. Investment decisions will be informed by KEPLER an in-house built intelligence system that monitors Bitcoin market cyclicality. KEPLER also offers market research and portfolio management tools. Investors in the TaaS ICO will get one year free access to KEPLER when it’s released to the public at the end of 2017.

What is the token being sold?

The TAAS token is a fully tradable Ethereum metatoken and a profit sharing smart contract. Holders of the smart contract will receive dividends distributions in the form of ETH. After the TaaS token sale ends, no new coins will ever be created. 100 percent of TAAS tokens will be sold off during the token sale.

25 percent of the profits from the fund will be used to make future investments in the crytpo-asset industry and an additional 25 percent will be distributed to the development team. The remaining 50 percent will distributed to TAAS token holders.

What is the project status?

The TaaS fund is incorporated as a business entity in Singapore. Code for the profit sharing smart contract has not been made publically available.

According to the TaaS whitepaper, the KELPER portfolio management and trading analytics platform will be released to the public at the end of 2017, but so far no code has been made public.

Who is the competition?

2016 and 2017 have seen a rapid increase in the number of projects that are leveraging blockchain technology to disrupt traditional equity and security markets. The blockchain industry has already seen an incredible diversity in these types of projects from tokenized venture capital funds to blockchain-based hedge funds. TaaS Fund’s most direct competition is going to come from other tokenized funds focused on investments in crypto-assets.

In 2016 ICONOMI raised more than $10 million in their token sale to launch a platform for managing funds on a blockchain. ICONOMI will support ETF-like financial instruments called Coin Traded Funds (CTF) that will primarily consist of investments in crypto-assets, as well as hedge funds. Eventually, ICONOMI plans on launching a marketplace where anyone can issue and sell shares in a fund.

Melonport raised $3 million in less than ten minutes in 2017. Melonport is launching a platform for hedge fund management on the Ethereum blockchain. The Melon protocol itself is not a Taas Fund competitor, but if it takes off, it should spawn a range of additional hedge funds focused on cryptocurrency. Taas could choose to migrate to Melon and take advantage of its auditability features.

There are several other live opportunities to invest money in another actively managed crypto-asset-focused fund. This category of companies is referred to as HYIP: High Yield Investment Programs. Some notable examples include Bitup and Ethtrade. Here is a list of currently active programs. HYIP have a poor reputation because they are custom-built for scams: send crypto-currency to an unregulated and often-anonymous fund, hope they pay out promised rewards, and if so, hope that payouts are from actual fund performance and not from new investments. It’s unclear how much gets invested in these funds, but the lack of transparency is a barrier to adoption.

Who is the team behind the project?

The team includes ten core members located in Kiev, Ukraine with an additional team of developers located in the United States. TaaS has nine confirmed advisors including Mike Costache, the CEO of KrowdMentor, a consulting firm specializing in strategic crowdfunding; John Wong the vice president of business development at Propy Inc. and a former vice president at Wells Fargo; and Arnold Spencer a council member of Coinsource and a lawyer who specializes in white collar crime and corporate criminal defense.

The four co-founders worked together previously at a crypto-asset investment firm called Bitup Analytical Group prior to launching TaaS.

  • President Ruslan Gavrilyuk has been investing in crypto-assets since 2015, when he started BitUp.
  • Vice President Konstanin Pysarenko co-founded Bitup Analytical Group with Ruslan.
  • Head of Technology and Analytics Dimitri Chupryna holds a B.A. in Economics from the University of San Francisco. For seven months between 2016 and 2017 he worked as a private investment manager with a specialty in blockchain tokens and cryptocurrencies for an firm based in Kiev. While his LinkedIn doesn’t indicate the firm, it was likely Bitup.
  • Head of Technology and Trading Maksym Muratov was the Lead Trader at Bitup. According to his Linkedin, he started working as an independent trader in 2013 and has more than a year of experience working as a trader for an unnamed private asset management firm.

Token Details

Role of token: Proof of membership in TaaS fund and rights to 50% of its profits
Token supply: Proportional to amount raised, 101 million cap
Distributed in ICO:      100%
Emission rate:  No new tokens created
Consensus method:  Ethereum

ICO Details

Sale period:  March 27th, 2017 to April 27th, 2017
Token distribution date:  Immediately distributed
Minimum investment goal:  None
Maximum investment cap:       None
How are funds held:  HLB International will be auditing use of proceeds
Bonus schedule:
Raise amount      Bonus
 0-1,000 BTC       25.0%
 1,001-2,000 BTC       22.5%
 2,001-3,000 BTC       20.0%
 3,001-4,000 BTC       17.5%
 4,001-5,000 BTC       15.0%
 5,001-6,000 BTC       12.5%
 6,001-7,000 BTC       10.0%
 7,001-8,000 BTC       7.5%
 8,001-9,000 BTC       5.0%
 9,000 + BTC       0%

Official Resources