There’s a giant elephant in the room right now. What in the heck is happening with digital currencies? Is the party over?
Let me bluntly pose a few questions to you, the reader. First, do you understand that the entire sector is a heck of a lot bigger than one or two currencies? Second, do you also realize that there’s an early-stage company out there looking to confront and solve these concerns head-on?
In case you haven’t heard of Tokens.com, you might want to get very, very familiar. Simply put, this newly public company could be the purest alpha play in the entire digital currency sector.
In a nutshell, if digital currencies and blockchain technology is a city, companies like Tokens are the infrastructure and plumbing. The best part? Tokens.com, through its PoS mining and asset holdings, is confronting several of the sector’s concerns head-on while being leveraged to the upside of exploding sub-sectors like NFTs and DeFi.
Consider these brief snapshots of how potentially explosive Tokens.com and its PoS technology could be:
- Tokens.com’s PoS technology may be so revolutionary that the company proudly proclaimed that its PoS tech is at near zero-energy consumption in a recent letter to shareholders.(1)
- PoS technology paid out over $20 billion last year alone.(13)
- PoS technology is powering an NFT space that exploded from just about $31 million in 2017 to an estimated $710.9 million as of April 10, 2021, and saw its sales volume triple in 2020.(16)
- PoS technology could also act as the infrastructure behind an exploding DeFi space that saw its value locked-in explode from virtually 0 last April to roughly $56.3 billion as of April 23, 2021.(16)
- Tokens’ staking rewards earned an equivalent to an annualized gross yield of 12.8%, while digital assets owned by the company and used for Staking appreciated by 151.9%.(21)
Tokens.com may be the only value stock in this field, and I’ll tell you why. First, the stock has only been actively trading since about April 30, 2021, and is significantly down from its initial price. This is what can tend to happen to companies that just go public. Especially when the overall industry simultaneously goes through some volatility and pullbacks. However, since that initial pullback, the Tokens.com stock has been trading largely sideways while potentially catching support.
With next-gen PoS mining tech, and exposure to the enormous, generational upside potential of DeFi and NFTs, it’s tough to spot emerging companies like this trading at such a potential discount. Especially when you consider that this company may be perfect for those who want exposure to DeFi and NFTs, without the burden of buying, managing, and securing digital assets themselves.
Tokens’ Q1 2021 financial results may paint an even more bullish picture for the company. It’s frankly shocking to see a stock trading at this type of discount with accomplishments such as:(21)
- The closing of a CAD$25 million subscription receipt financing (the “Offering”) in connection with the closing of its go-public transaction co-lead by Stifel GMP and Canaccord.
- Staking rewards that earned an equivalent to an annualized gross yield of 12.8%.
- Digital assets owned by the company and used for Staking which appreciated by 151.9%.
- Comprehensive income of USD$2,712,513.
- Equivalent to USD$0.036 or CAD$0.044 comprehensive income per share subsequent to the Offering and share split that took effect prior to go-public transaction.
Kiguel further said that “In addition to the Staking revenues, the digital assets we use as tools to Stake appreciated by over 150%. Our model benefits from two forms of value creation: the revenue created from our operational Staking plus the appreciation of our digital assets used as tools for Staking. We perform transaction validation for blockchains that underpin the DeFi and NFT markets globally. It’s an incredibly asset-light, scalable model with an exciting global market opportunity that is still in the early stages.”(21)
Tokens.com is a technology company that provides its customers with a secure and straightforward way to invest in the digital currencies that power Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs).
This is accomplished through Tokens.com’s transformative Proof-of-Stake (PoS) technology. Within the next 3 years, almost all digital currencies are expected to rely on PoS technology, either due to switching from outdated PoW mining to PoS or by natively launching as a PoS blockchain.(16) Tokens.com looks primed to be a leader in this space as the first publicly traded PoS technology company and shows potential to have considerable market share and benefit from the expected growth and increased reliance on PoS.(16)
Tokens.com also creates value for shareholders by earning staking yields and the appreciation of its digital asset inventory. In other words? They take care of the burden. This company is perfect for those who want exposure to DeFi and NFTs, without the burden of buying, managing, and securing digital assets themselves. Tokens.com creates value for shareholders today and has a highly scalable business model that could continue to capture the value of this space without the burden of personally managing the underlying exposure.
Mining and Energy Usage
Bit-coin has been under duress because of the astounding amount of energy it uses. According to the Cambridge Center for Alternative Finance (CCAF), mining currently consumes around 110 Terawatt Hours per year, or 0.55% of global electricity production and roughly equivalent to the annual energy draw of small countries like Malaysia or Sweden.(2)
The Bit-coin network also consumes approximately 1,708% more electricity than Google.(3)
But if that’s the case, and people are running away from digital currencies, how come El Salvador recently became the first country to adopt Bit-coin as a legal currency?(4)
In March, why did Morgan Stanley become the first big U.S. bank to offer its wealthy clients access to Bit-coin funds?(5) How come Goldman Sachs went all in and announced that despite recent volatility, the entire digital currency has become its own “Investable Asset Class”?(6)
It’s clear. The industry is confronting energy concerns head-on based on recent initiatives spearheaded by Elon Musk(7) and the Bit-coin Mining Council.(8)
Tokens.com is a company at the forefront of the future of digital currencies, thanks to its PoS mining technology. Miners such as Marathon Digital Holdings (roughly $2.6 billion market cap)(9), Riot Blockchain Inc (approximately $3.014 billion market cap)(10), and Hive Blockchain Technology (about $936.2 million market cap)(11) can be considered direct comparisons and competitors. But, get this. Existing mining technology has been around for roughly 12 years,(1) and has become outdated. Period.
Traditional miners are “has beens,” are using too much energy, and do not have the same processing power as PoS technology. Plus, PoS technology uses 99.95% less energy than existing mining technology.(16)
But, Tokens.com’s PoS technology may be so cutting-edge that the company proudly proclaimed that its PoS tech is at near zero-energy consumption in a recent letter to shareholders.(1)
After all, what message does it send when Hive, supposedly one of Tokens’ most significant competitors, makes a strategic investment into Tokens?(12) It could only mean that they see Tokens as the future and them as the past.
PoS technology is a vast, rapidly growing, and potentially untapped market. Not to mention, it paid out over $20 billion last year alone.(13)
Furthermore, while Tokens.com’s inventory appreciates in value, traditional mining equipment depreciates.
NFTs and DeFi
The digital currency space is also a lot bigger than just a coin or two. After all, the market as a whole globally was estimated to be just about $792.53 Million in 2019. By 2026, it’s expected to skyrocket to 5,190.62 Million at a 30% CAGR.(14) The blockchain market size was also valued at roughly $2.01 billion in 2019 and is projected to reach $69.04 billion at a 56.1% CAGR by 2027.(15)
NFTs and DeFi, though, might be the most explosive of the bunch. The best part, though? PoS technology is wholly powering both!(16)
PoW mining is based on outdated technology that only works for one specific currency. It is simply too slow with insufficient throughput. As a result, DeFi and NFTs cannot be built and used efficiently on blockchains mined by traditional miners.
On the other hand, PoS is more environmentally friendly, more decentralized, has a higher transaction throughput, and is a highly scalable asset-lite business model. (Source 16) DeFi and NFTs have to be built on platforms that use PoS and pay fees to those platforms that go to Tokens for validating the transactions. Thus, as the DeFi and NFT markets grow and pay more fees, Tokens.com acts as a proxy for what’s occurring.
NFTs, or non-fungible tokens, are exclusive and unique digital assets stored on the blockchain network. As a sports nerd, I’ve especially gotten into NFT platform NBA Top Shot, which functions almost like a digital trading card network (with short exclusive video clips that function as the cards).
Do you realize that the company behind NBA Top Shot recently raised about $305 million while being valued at approximately $2.6 billion?(17)
Furthermore, the total market cap for NFTs has exploded from just about $31 million in 2017 to an estimated $710.9 million as of April 10, 2021. (Source 16)
NFT sales volume also tripled in 2020.(16) But this may only be the beginning of the long-term growth story of NFTs thanks to its simplicity, gamification, and deeper foundation.(18)
DeFi, or decentralized finance, is also a subsector of the digital currency space that could be revolutionizing our financial system as we know it. It makes financial transactions more secure, more accessible, and more open and internationally universal. It has also built itself into a global, more accessible, open alternative to everyday mainstream financial services, including savings, loans, trading, insurance, and more.
Long before 2020, it was growing. But now? It’s skyrocketing, and Tokens.com has perfect exposure to it.
This is nothing short of a snowballing industry. For example, the amount of value locked into DeFi moved from virtually 0 last April to roughly $56.3 billion as of April 23, 2021.(16)
Not to mention, about $20 billion has been paid out in staking compensation with an average return on deployed capital of 11.2% for 2020.(16) Plus, 25 of the top 100 digital currencies use PoS technology to secure their networks with a combined market cap of over $175 billion.(16)
Still not convinced? Let’s take a look at the approximately $6.8 trillion lending sector. (Source 16) We’re currently in a 0% interest rate environment right now for traditional financing, thanks to the Fed. But say you want to loan digital currencies. Just look at how the Annual Percentage Yields (APY) compare.
What 0% interest rate? Do you still think you need a bank intermediary limiting you? Tokens.com believes otherwise, and for a good reason.
Tokens.com is Also Backed By Powerful Shareholders
Tokens.com is backed by a strong group of shareholders, including significant players in the blockchain industry, one of Canada’s most prominent technology funds, and several high-net-worth individuals.(22)
For example, its latest seed financing round included 30 institutions and high-net-worth individuals, including strategic investments made by Bitbuy Limited, First Block Capital, HIVE Blockchain, Matthew Roszak, the co-founder and Chairman of Bloq, and Olaf Carlson-Wee, the founder and CEO of Polychain Capital.(23)
To put it bluntly, those in the know seem very enthralled and excited about this company’s revolutionary potential.
Tokens.com (NEO:COIN)(OTC:SMURF) May Also Be a Potential Inflation Hedge
Thanks to the health predicament, the economic crisis we’ve been living through has caused central banks worldwide, particularly in the US, to print money like there’s no tomorrow. This unprecedented economic stimulus to combat the effects of high unemployment and shutdowns may have long-term ramifications. Already, we may be seeing some of them in the form of inflationary pressures.
All of the trillions of stimulus spending are debasing the USD. Thus, the value of all those dollars people have been saving over the years could be depreciating.
Tokens’ potential importance as an inflation hedge may just be coming to fruition with the potential for further government spending on the horizon. Because Tokens’ assets are held in digital currencies, this provides potential shareholders with diversified holdings. Outside of Tokens’ holdings skyrocketing in value, they are also not linked to the inflationary pressures that the USD is currently under.
Meet the Tokens.com (NEO:COIN)(OTC:SMURF) Management Team
Tokens.com’s PoS operations certainly have eye-popping potential. They look groundbreaking and cutting-edge. However, the company’s management team might be its best asset.
The Tokens.com team is led by experienced veterans with blockchain and capital markets expertise that provide transparency and high caliber governance.
Not to mention, the CEO has been featured in Forbes(24) and co-founded one of the largest publicly traded digital currency mining firms in the world.
Chief Executive Officer
Andrew Kiguel is an accomplished executive with leadership experience in Canadian capital markets, corporate governance, and entrepreneurship. He was the co-founder and CEO of Hut 8 Mining, one of the world’s largest publicly listed digital currency miners.
Before that, Andrew spent over 18 years at GMP Securities (now Stifel Canada) in investment banking, with his most recent title as a Managing Director.
Chief Financial Officer
Kyle Appleby is a seasoned CFO with decades of experience providing management and accounting services to public companies across various industries, including digital currency, technology, junior mining, food production, agriculture, green leaf, and more.
Having served as CFO for several public companies across Canada, U.S. and U.K., Kyle brings extensive financial reporting, IPOs, fundraising, and corporate governance experience.
Chief Operating Officer
Deven Soni is an experienced operations executive and investor. He spent several years as a technology-focused investor at Goldman Sachs and Highland Capital Partners, where he funded several leading technology businesses.
Deven is the Co-Founder of Wired Investors, a private equity fund focused on small-cap buyouts. He is also a founding director of Polymath and an active investor in the digital assets space.
Head of Investor Relations
Katherine Sullivan’s career spans Financial Services and Digital Assets. This unique background provides a solid combination of investor relations experience, deep expertise in business strategy, and a broad digital currency and institutional investor network. Previously, she spent several years working with strategic partners and institutional investors at Galaxy Digital.
Before that, she spent 10 years focused on algorithmic sales and trading at Fidelity and Jefferies, where Institutional Investor ranked her top in the industry.
Board of Directors
CEO & Director
Andrew Kiguel is the Founder and CEO of Tokens.com and will serve as a director for the company.
Exec. Chairman & CEO, 3iQ
Fred Pye is the Exec. Chairman and CEO of 3iQ Corp. With over 35 years of experience in the financial industry, he is widely recognized for bringing innovative investment products to market.
Previously, Fred held many senior positions across companies, including National Bank, Fidelity, and Guardian Trust.
Fmr. CFO, Hut8 Mining
Jimmy Vaiopoulos was the former CFO and Interim CEO of Hut8 Mining, one of the earliest and largest publicly-listed digital currency miners globally.
Jimmy was also the CFO of UGE International Ltd. He started his career at KPMG, where he provided deal advisory and audit services for a wide range of clients.
Co-Founder & CEO, Clearbanc
Andrew D’Souza is the Co-Founder & CEO of Clearbanc, the world’s largest e-commerce investor. He is an active early-stage investor and serves as an advisor to companies including WealthSimple, Properly, and Tulip Retail.
Before Clearbanc, Andrew was the president of Nymi and the COO of TopHat.
CEO of MMH Blockchain Group
Emma is CEO of MMH Blockchain Group and Chair of the Canadian Blockchain Consortium’s FinTech Committee, and Chair for Girls In Tech. She is also past Chair and Executive Board Member of Blockchain for Impact, which works alongside the United Nations.
Emma has helped some of the world’s largest banks succeed, including JP Morgan Chase and Bank of America. Emma has also spoken at the United Nations Headquarters and at Parliament in Ottawa, Canada. She has also amassed many accomplishments, including being one of the Top 100 Black Women to watch in Canada.
Source 1: https://bwnews.pr/3woRbUg
Source 2: https://bit.ly/2SnjUKs
Source 3: https://bit.ly/3xaJMrH
Source 4: https://yhoo.it/2TgFiRZ
Source 5: https://cnb.cx/3czcNpf
Source 6: https://yhoo.it/3w8kgDs
Source 7: https://cnn.it/2Tc9opz
Source 8: https://www.bbc.com/news/technology-57240090
Source 9: https://finbox.com/NASDAQCM:MARA/explorer/marketcap
Source 10: https://finbox.com/NASDAQCM:RIOT/explorer/marketcap
Source 11: https://finbox.com/OTCPK:HVBT.F/explorer/marketcap
Source 12: https://www.thenewswire.com/press-releases/1k3wF1QwJ-tokenscom-announces-launch-and-completion-of-seed-financing-round.html
Source 13: https://bit.ly/3xpTXsT
Source 14: https://bit.ly/3iCZl7P
Source 15: https://www.globenewswire.com/en/news-release/2021/04/27/2217572/0/en/Blockchain-Market-to-Expand-at-56-1-CAGR-and-Reach-USD-69-04-Billion-by-2027.html#:~:text=The%20blockchain%20market%20size%20was,56.1%25%20during%20the%20forecast%20period
Source 16: https://www.tokens.com/investors-presentation
Source 17: https://amp.usatoday.com/amp/7058307002?__twitter_impression=true&s=09
Source 18: https://bit.ly/3xqljQb
Source 19: https://blockfi.com/rates/
Source 20: https://www.barchart.com/stocks/quotes/COIN.NE/interactive-chart/fullscreen
Source 21: https://www.businesswire.com/news/home/20210517005193/en/Tokens.com-Announces-Q1-2021-Financial-Results
Source 22: Tokens.com One-Sheet (Provided by company, no url)
Source 23: https://www.thenewswire.com/press-releases/1k3wF1QwJ-tokenscom-announces-launch-and-completion-of-seed-financing-round.html
Source 24: https://www.forbes.com/advisor/investing/digital-currency/