Crypto Project Final Report - 1

A REPORT ON INTERNSHIP PROJECT AT Exvillage Software Systems Privet Limited SUBMITTED TO BANGALORE UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITED BY KARISHMA G H USN-171GCMD059

UNDER THE GUIDANCE OF

External Guide Zabi Ulla Khan HR Executive

Internal Guide G Mahesh Assistance Professor

R. V. INSTITUTE OF MANAGEMENT CA 17, 36th Cross, 26th Main, 4th “T” Block, Jayanagar, Bangalore - 560041.

2018-2019

Executive Summary:

The Cryptocurrency exchange industry comes under financial service industry, the research on cryptocurrency field is still limited, mostly research in this field is focusing on a single cryptocurrency rather than broader areas such as technological advancement, government participation in market regulation as well as market development. At my internship program, I have made a study on organization which deals with the cryptocurrency exchange . The Exvillage Software systems private limited, addresses other gaps in the current crypto trading landscape by using more evolved technologies compared to those of traditional stocks and futures exchanges, including providing a more open and trustworthy platform to facilitate crypto asset transactions and liquidity, 24/7 support, and financial products such as margin trading, futures, and other derivatives. Working as an intern at Exvillage I noticed the problem with online promotions for Cryptocurrency(ICO’s) and have applied Fishbone model for the analysis of the problem statement to effectively address the cause and effect for the online promotions in the field of cryptocurrency .

CHAPTER – 1 INDUSTRY PROFILE

1.1 Financial Service Industry: The financial services industry plays a vital intermediary role in the world economy as it moves money from entities with excess funds to those with a need for funds. It includes firms that are engaged in activities such as investing, lending, insurance, securities trading, and securities issuance. Its clients are individuals, businesses, non profit organizations, and agencies of government. The industry as a whole encompasses and integrates numerous components and services in interlocking and co-dependent parts. Bank deposits provide the capital for bank loans. The sale of stocks and bonds to investors supports the operations of businesses and governments who issue those stocks and bonds. Insurance contracts help to pool and manage risks. Types of Businesses in the Industry: It is not an exhaustive list of businesses or services that contribute to the industry by any means, but the financial services industry usually encompasses companies in one or more of the following lines of business: 

Banking



Insurance



Securities brokerage or financial advisory services



Investment banking



Securities trading



Investment management or money management



Securities analysis



Financial planning



Wall Street

India has a diversified financial sector undergoing rapid expansion, both in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non-banking

financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. The banking regulator has allowed new entities such as payments banks to be created recently thereby adding to the types of entities operating in the sector. However, the financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64 per cent of the total assets held by the financial system.

1.1.1 Some of the issues financial institutions face today includes: 

Promoting growth and sustaining profitability in an environment with low interest rates



Rebuilding asset quality and strengthening capital positions



Developing new and reliable sources of revenue



Increasing the business value of customer relationships, especially when customers have become more demanding



Restoring public confidence in the industry



Competing with aggressive, innovative non-traditional competitors



Incorporating a risk management culture into daily operations

1.1.2 Investments/Developments: 

Global payments solution giant MasterCard has launched its first technology lab in Pune, which will enable India to move towards digital economy and financial inclusion.



Four metro cities Delhi, Mumbai, Bangalore and Chennai can reap benefits of US$ 7.2 billion annually by increasing payments through digital means.



Bank Bazaar, a financial marketplace start-up in India, raised US$ 30 million in a funding round led by Experian Plc, a credit rating agency based in UK, taking the company's total funding to US$ 110 million.



Private equity (PE) investments in India increased 59 per cent to US$ 24.4 billion in 2017, with average deal size of US$ 42.8 million, according to data provided by Venture Intelligence.



Private equity and venture capital firms recorded investments worth US$ 7.9 billion with 180 deals during January-March 2018.



In May 2018, total equity funding’s of microfinance sector grew at the rate of 39.88 to Rs 96.31 billion (Rs 4.49 billion) in 2017-2018 from Rs 68.85 billion (US$ 1.03 billion).

1.1.3 Market Size: 

The Mutual Fund (MF) industry in India has seen rapid growth in Assets Under Management (AUM). Total AUM of the industry stood at Rs 23.26 lakh crore (US$ 36o.90 billion) as of April 2018. At the same time the number of Mutual fund (MF) equity portfolios reached a record high of 2.27 billion in February 2018.



on account of rise in investments in the Mutual Funds and other financial instruments, the revenues of the brokerage industry in India are forecasted to grow by 15-20 per cent to reach Rs 18,000-19,000 crore (US$ 2.80-2.96 billion) in FY2017-18, backed by healthy volumes and a rise in the share of the cash segment.



Another crucial component of India’s financial industry is the insurance industry. The insurance industry has been expanding at a fast pace. The total first year premium of life insurance companies grew 17.35 per cent year-onyear to reach US$ 25.44 billion during April 2017-February 2018.



Along with the secondary market, the market for Initial Public offers (IPos) has also witnessed rapid expansion. The total amount of Initial Public offerings increased to Rs 84,357 crore (US$ 13,089 million) by the end of FY18.



over the past few years India has witnessed a huge increase in Mergers and Acquisition (M&A) activity. The total value of M&A in India rose 53.3 per cent year-on-year to US$ 77.6 billion in 2017 from US$ 50.6 billion in the preceding year.



Furthermore, India’s leading bourse Bombay Stock Exchange (BSE) will set up a joint venture with Ebix Inc to build a robust insurance distribution network in the country through a new distribution exchange platform.

1.1.4 The rapid shift in technology and customer expectations require financial 

institutions to address projects such as:

Mobile Banking – Financial institutions have to develop and implement new digital delivery strategies to remain competitive. At a minimum, they must incorporate mobile banking as a regular delivery channel.



Next-Generation Platforms – Many financial institutions rely on legacy systems to conduct operations. To address the issues facing the industry, financial institutions need to quickly migrate their old technology architectures to next-generation capabilities. Viewing new technology as a strategic growth investment rather than an operational expense will demonstrate the value of IT systems throughout an organization.



Cyber Security – According to the survey 70% of industry leaders believe cyber insecurity is a threat to growth. The ongoing news reports of data breaches at retailers highlight the danger all businesses face.

1.1.5 Trade: Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties. The most common medium of exchange for these transactions is money, but trade may also be executed with the exchange of goods or services between both parties, referred to as a barter, or payment with virtual currency, the most popular of which is bitcoin. In financial markets, trading refers to the buying and selling of securities, such as the purchase of stock on the floor of the New York Stock Exchange (NYSE). Regardless of the complexity of the transaction, trading is facilitated through three primary types of exchanges. Trades are executed with the payment of sovereign currency, the exchange of goods and services, or payment with a virtual currency.

 Currency as a Medium of Exchange: Money, which also functions as a unit of account and a store of value, is the most common medium of exchange, providing a variety of methods for fund transfers between buyers and sellers, including cash, ACH transfers, credit cards and wired funds. Money’s attribute as a store of value also provides assurance that funds received by sellers as payment for goods or services can be used to make purchases of equivalent value in the future.

 Barter Transactions: Cashless trades involving the exchange of goods or services between parties are referred to as barter transactions. While barter is often associated with primitive or undeveloped societies, these transactions are also used by large corporations and individuals as a means of gaining goods in exchange for excess, underutilized or unwanted assets. For example, in the 1970s, PepsiCo Inc. set up a barter agreement with the Russian government to trade cola syrup for Stolichnaya vodka. In 1990, the deal was expanded to $3 billion dollars and included 10 Russian-built ships, which PepsiCo leased or sold in the years following the agreement.

 Virtual Currencies: As the newest medium of exchange, virtual currencies do not expose holders to foreign exchange risks, provide anonymity between trading partners if desired and avoid the often-significant processing fee for credit cards. The most popular virtual currency is Bitcoin, which was introduced in 2009. Bitcoin are held in virtual wallets and can be used with a growing number of web-based merchants, including WordPress.com, overstock.com and okCupid. Additionally some online retailers supporting individual merchants (such as Etsy) provide those merchants means to conduct their transactions using virtual currencies. There are also platforms for converting virtual currencies into gift cards. Virtual currencies are often popular with small businesses, due in part to the lack of processing fees.

 Crypto Trading:

This type of trading involves exchanging one crypto currency for another, buying and selling coins, and exchanging fiat money into crypto.It bears some similarities to foreign exchange (forex), where fiat currencies from across the globe are traded 24 hours a day.The number of cryptocurrencies has exploded in recent years – and estimates suggest there are now more than 1,500 in existence. Many of these coins can only be acquired using a major cryptocurrency such as Bitcoin or Ethereum. Because of this, you’ll likely need to perform trades if you want to contribute to initial coin offerings (ICO,) or use a blockchain company’s services.

Cryptocurrency: A cryptocurrency is a virtual or digital currency that uses cryptography for high security . A cryptocurrency is difficult to hack by the hackers because of its security features. The most important feature of a cryptocurrency is arguably , its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.

Centralized cryptocurrency exchange : It is the most common way to trade cryptocurrencies through online platform, which involves buying or selling cryptocurrencies with fiat as well as buying or selling cryptocurrencies with other cryptocurrencies. Centralized in cryptocurrency exchange means that there is a trusted middleman who handles the assets in trade.

Decentralized cryptocurrency exchange :

It

is

an

cryptocurrency exchange market that does not rely on the middleman to hold the customer’s funds. Instead trades occur directly between users i.e , peer to peer through an automated process

ICO’s (Initial coin offering) : It is a new kind of financial transaction, used tp raise funds for a new cryptocurrency or any other digital asset. Investors are given a percentage of the new cryptocurrency in return when they pay using cash or another cryptocurrency. ICO’s are becoming very popular means of raising money as cryptocurrencies become more stable asset

class. ICO’s also avoid the arduous regulation surrounding the capital raising proess.

ICO Market, 2017:

As the number of cryptocurrencies doubled, the ICO market also saw equal activity growth levels. For 382 ICO’s , $6B was raised over the course of the year .As the Bitcoin and other cryptocurrencies became popular, the ICO market had become evidence that investors have become willing to allocate more capital into this new asset .

Three ways to trade in the crypto world: 

Buy the underlying: It is meant, holding the actual currency in a wallet at the exchange from an exchange or crypto currency broker . By buying the underlying you become the direct holder of the digital asset. Upon purchase the cryptocurrency is sent to your address or wallet with the exchange, further you can transfer the cryptocurrency to any wallet address using your private key that verifies your control ownership of the asset.

The issue with the responsibility to safeguard your private key which controls the digital asset also comes with additional risks . Advantages:  You control the actual digital asset.  Most versatile option i.e it can be transferred, sold, exchanged and also converted.  Can be more secure with the use of private key  No third party required when the private key is held in cold storage offline.  Multiple payment wallet options available(to store or transfer the asset) Disadvantages:  It is your responsibility to safeguard the private key which is unique to each address.  You should have minimum technical knowledge to carry out operations.  The private key is unrecoverable once it is lost and it is nothing more than loosing asset.  The private key could be hacked if it is stored at the exchange where you bought the crypto coin. 

Trade as a CFD(Contract for Difference): It is more or less buying and selling the crypto assets as contract for difference, derivative and hold cash margin with an online forex broker or multi-asset broker. Here choosing the best broker is as important as finding one with the best trading tools or commission rates and using an online forex broker will provide them with 24hour trading, potentially lower margin, and the ability to go either long or short.

Advantages:  Trading a CFD or derivative on crypto coin negates the responsibility to safeguard any private keys.  Your cash margin can have more buying power because greater degree of leverage is usually offered on derivatives.  CFD or derivatives permit trading by opening a selling position without first having a buy position .  Brokers may be able to offer lower transaction fees . Disadvantages:  Trading costs are high compared to trading on buying the underlying.  When the broker finds fault in the system or if it finds a client violates their particular account agreement then trades may be cancelled or reversed in the event .  If the broker goes bankruptcy, investors may suffer losses and not receive priority among creditors.

 Buying a publicly listed security: By buying a publicly listed security such as ETF,ETP or trust may be suitable for those looking to taking a passive position and this can be mainly for stock market investors, investing in crypto coin. Advantages:  Investors do not need to hold private keys but provides an alternative investment method to buy and hold.  Doesn’t require safeguard private keys.  Traders trade under exchange guidelines. Disadvantages:

 As the price of the security and the price of the underlying asset may vary , causing error in tracking.  Trading facilities are not available for 24hours but can only be tradable during exchange.  Bid spreads and other fees may be different than the cost of buying the underlying directly.

1.1.6 The responces from financial industry to the cryptocurrency trend :  It is a bogus and fraud.  This should be regulated like stocks and other securities.  May be we can find a way to implement blockchain ourselves  We have a lot of capital under investment, should we get involved in the cryptocurrency market?

 Lets create bitcoin-tracking commodities for cryptocurrencies  Cryptocurrency can’t really replace us, can it ?

1.1.7 Structure of the financial system:

 Financial Services: As the name suggests financial services are the services provided by the Financial Institutions. These services generally include the banking services, Foreign exchange services, investment services, insurance services, advisory services, venture capital, angel investment etc.

 Financial Intermediaries/Institutions: A financial intermediary is an institution which connects the deficit and the surplus. The best example of an intermediary can be a bank which transforms the bank deposits to bank loans. The role of financial intermediary is to channel funds from people who have extra inflow of money i.e., the savers to those who do not have enough money to fulfill the needs or to carry out the basic activities i.e. the borrowers. Functions of Financial Intermediaries Functions of Financial Intermediary are basically classified in three parts which are as follows: 

Maturity transformation – Deals with the conversion of short-term liabilities to long term assets.



Risk transformation – Conversion of risky investments into relatively risk-free ones.



Convenience denomination – Way of making the unmatched matching which is matching

small deposits with large loans and large deposits with small

loans. Financial Intermediaries are classified into two types namely, Depository and NonDepository Institutions.

 Financial Instrument: Financial Instrument is a trade-able asset which can be in terms of cash, agreement, evidence of an ownership in an entity; or a contractual right which has the right to deliver cash or any kind of asset. The types of financial instrument used worldwide are in the form deposits, stock, and debt. 1. Deposits – Deposit in a layman’s term, means to save or to keep safely. Deposits can be made either with banking or non-banking firm. 2. Stock – Stocks represents the ownership of the issuing company. It is a form of corporate equity ownership where in the total stock of the company is divided into shares and the individuals has the provision to trade the shares in the exchange. 3. Debts – Unlike the stocks, financial assets which are in the form of debts create an obligation on the borrower of the fund to repay the amount borrowed. The debt instrument, thus in a sense, is a contract entered into by the borrower and the lender which specifies the amount of fund borrowed, period of borrow, the rate of interest that will be charged and the repayment methods.

 Financial Market: Financial Market is a mechanism that allows people to indulge themselves in the buying and selling i.e. trade of financial securities (for example stocks and bonds),

commodities (for example precious metals) at prices that reflect the market’s effectiveness.

1.1.8 Major players in the crypto trading industry with the market share information: 

Market Size: Finding and estimating the exact size of the market is difficult of any industry, particularly the cryptocurrency industry due to rapid and huge volatility in prices over short span of time. On the date of December 1, 2017, the total market capitalization of the cryptocurrency market was $326.7B. By January 1, 2018, the total market capitalization of cryptocurrency had increased to $629.5B. By the date of February 28, 2018, the market capital settled down at $447.9B The current market capital of cryptocurrency industry stands at around $417B According to the research , Jesse Powell, founder and CEO of Kraken said that the cryptocurrency market would continue to see an “acceleration” of growth and he agreed that cryptocurrency industry would hit the $1trillion mark in 2018.

Total market capital:



Market volatility: The volatility of cryptocurrency market in 2017 was above 80%, annualized volatility level with a large portion of the year is above 100% constantly and booming in February 2018 at 148% volatility. These high level of volatility are unheard for assets traded in volumes as high as cryptocurrencies in 2017. The cryptocurrencies are also especially high when compared to the rest of US stock market .

Mareket share concentration : In terms of market share concentration the year 2017 – 2018 is the transformative year in the cryptocurrency market. At the beginning of 2017 Bitcoin held 87.4% of the capital invested in the crypto market . As the cryptocurrencies became more popular and came into the spotlight and became the mainstream, more than 914 new cryptocurrencies hit the market in 2017 alone. Because of this Bitcoin’s share in the market was reduced by 38.6% by the year end.

2017 – Market share concentration:

2018 – Market share concentration:

 Top Decentralized exchange:  Binance Market capital : $1,147,141,845 USD 157,312 BTC

 IDEX Membership: Market Capital : $2,304,100 USD 317 BTC 7,807 ETH

 Waves : Market Capital : $216,325,596 USD 29,641 BTC

openLedger DEX Market capital : $315,245 USD 43.28 BTC

 CryptoBridge Market capital : $2,054,314 USD 282.02 BT

Stellar Decentralized Exchange Market capital : $850,155 USD 116.81 BTC

 Comparison between top cryptocurrencies:

1.1.9 Competition : The ability to effortlessly cross borders is one of the major consistent features of all cryptocurrencies, and the top exchanges in the market tend to serve customers from almost every country in the worl . The biggest names pick up a significant percentage of what might be a multi-trillion dollar market in coming years, and is already well into multi-billions. The catch is that a relatively small number of exchanges might end up dominating the bulk of the industry.The borderless nature of the technology means one business can serve the entire world, especially once more unified international regulations start developing, while high volume itself is a major competitive advantage of exchanges in the form of deeper liquidity and therefore a better product. For exchanges these days entering the market, having an extremely strong product as soon as possible is very essential to eventually get that piece of the pie. In this market, low fees or no fees,tight and high security and an exceptional technical foundation are the norm. To get ahead and then stay

ahead, an exchange needs to invest big and get creative, and it is well worth having so much money at stake. Ease of use. DEXs often have a steep learning curve and can be difficult for newbies to understand. Take a look at each exchange’s trading interface to see how easy it will be to use. Security features. Check for any additional security features the platform offers to help protect your funds. For example, some platforms allow you to directly link your hardware wallet to the trading contract. Currencies available. Which coins and tokens can you trade on the platform? Are all your desired currencies supported, and how/when are new coins and tokens listed? Trading volume. How much trading volume does the platform currently maintain? Is there enough liquidity to support your trading needs? Transaction fees. Check the fine print for details of the platform’s trading fees and any other charges that may apply to transactions. Sign-up process. How quick and easy is it to register for an account? What details do you need to provide? User reviews. one way to get a better feel for the quality of an exchange is to check out some independent reviews. This will help you find out what sort of experience other users have had on the platform and whether they’ve had any problems or concerns.

1.1.10

Michael Porter’s 5 Forces Model: Porter’s Five Forces is a competitive position Analysis , developed in 1979 by Michael E Porter of Harvard Business School as a simple framework for assessing and evaluating the competitive strength and position of a business organisation. Porter's Five Forces is a simple but powerful tool for understanding the competitiveness of any business environment, and for identifying the strategy's potential profitability. This theory is based on the concept that there are Five forces that determine the competitive intensity and attractiveness of the market. Porter’s five forces help to identify where power lies in a business situation. It is useful both in understanding the strength of an organization , current competitive position and the strength of a position that an organisation may look to move into. This is useful, because, when you understand the forces in the environment or industry that can affect your profitability, you'll be able to adjust the strategy accordingly. For example, you could take fair advantage of a strong position or improve a weak one, and avoid taking wrong steps in future. The Five Forces are brought together in the figure, below.

Porter’s 5 Forces Model:

 Crypto trading Industry Analysis using Michael Porter’s 5 Forces Model:  Threat of new entrants: Profitable markets attract new entries, which increase profitability.unless there are durable barriers to entry and incumbents are strong. Cryptocurrency market is so demanding and its an revenue generating venue for most of the start ups and easiest way to collect money from people through ICO Crowfund, the concept of ICO is not so matured and everyone tries to come into the market which gives more

competiton to other leading crypto industries. For example in 2017 alone there are around 914 cryptocurrencies released.

 Bargaining power of buyers: An assessment of how easy it is for buyers to drive prices down. This is driven by the: number of buyers in the market; importance of each individual buyer to the organisation; and cost to the buyer of switching from one supplier to another. If a business has just a few powerful buyers, they are often able to dictate terms. Customers are in control and decide which currency to buy and pay with-  without any middlemen activity. Also, they control where to store, protect and/or grow their assets. Look, for example, at the amount of wallet providers out there.

 Threat of substitutes: Where close substitute products exist in a market, it increases the likelihood of customers switching to alternatives in response to price increases. This reduces both the power of suppliers and the attractiveness of the market. Direct

payment

solutions

and

crypto

currencies are the

substitute for traditional banking solutions and FIAT currencies.

 Degree of rivalry: The main driver is the number and capability of competitors in the market. Many competitors, offering undifferentiated products and services, will reduce market attractiveness. Because of all above mentioned reasons, rivalry is bigger than ever, allowing for a healthy market place of supply and demand.

 Bargaining power of suppliers:

An assessment of how easy it is for suppliers to drive up prices. This is driven by the: number of suppliers of each essential input; uniqueness of their product or service; relative size and strength of the supplier; and cost of switching from one supplier to another. As there are many cryptocurrecny exchanges coming up in market and crypto vendors(suppliers) would prefer other exchanges who could take less fee for listing there currency.

CHAPTER – 2 ORGANISATION PROFILE

Company Profile : Exvillage Software Systems Private Limited is a Private incorporated on 20 April 2018. It is classified as Non-govt company and is registered at Registrar of Companies, Bangalore. Exvillage is a cryptocurrency exchange with a focus on “MOONX”, which is a decentralized ownership crypto exchange, offers investors, contributors, and traders a unique exchange platform that allows members to collectively participate and contribute, and in turn be rewarded with Moon Money (MM) equivalent to shares and voting rights within the company. MoonX was conceived with the purpose of turning around traditional forprofit, centralised exchanges who made money from the end users through a revolutionary Coin mechanism with zero commission fees for users and community members.

The brand is about creating a decentralized economy by not charging fees but providing members with Moon Money equivalent to shares within the company. It is mainly doing away with employer-employee and customer-business owner relationships to create a more peer-to-peer, equal relationship, offering our co-owners the fastest and most secure exchange technology verified by independent third-party experts

The exchange's vision addresses other gaps in the current crypto trading landscape by using more evolved technologies compared to those of traditional stocks and futures exchanges, including providing a more open and trustworthy platform to facilitate crypto asset transactions and liquidity, 24/7 support, and financial products such as margin trading, futures, and other derivatives.

Vision : “ MoonX is introducing technology that promises to nearly eradicate response time issues at financial exchanges and brings an alternate vision to make the world decentralized”.

Mission: “Bridge the gaps in the distribution of wealth and the potential to bring advanced technology to serve the crypto community”.

Objectives: 

Trading from one Cryptocurrency to any other crypto-currency is allowed. MoonX Family shall not restrict it to 3-4 base pairs like the existing centralised platforms available.



At the end, our aim is to integrate all companies, employees, and business assets into a unified blockchain ecosystem, which will make business truly efficient, transparent, and reliable.

Values: MoonX is a platform of the future for trading crypto assets that is decentralised, and co-owned by the entire MoonX Family. Major values of MoonXare as followed: 

Decentralized ownership

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Zero listing fee

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Zero commision fee

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Military grade security



Fastest throughput.

While existing solutions offer to solve just one problem at a time, the MoonX family is up to build a highly secure, useful, & easy-to-use product based on private blockchain. It will include easy cryptocurrency payments integration and even a digital arbitration syste

Management or Board of Directors:



Dr. Nithin devarajulu palavalli - Founding Chief Executive/Director



Palavalli narayanayaih setty devarajulu – Director



Hongwei li – Additional director



Jia li – Additional director



Tony Lee - Founding Financial Controller



Rahi Racharla - Founding Technology Executive



Anil Kumar – MoonX Technologist



Brian Soans - MoonX Evangelist

Organisation Structure:

Operations and Businesses, Product and Services Profile:  Operations : Moon Exchange is the ultimate excellence in Engineering.A group of the world’s leading cryptographers, stock exchange matching engine experts and quantitative trading and security experts volunteered in building the bestin-class secured blockchain exchange. Their aim is to match and exceed the existing Top Stock Exchange level + technology and provide best trading experience for the MoonX Family members. Trading is mining on MoonX. Every trade shall be awarded with Moon Money, Block rewards are higher for the Early traders. MoonX was born with an idea to debunk ‘for-profit’ traditional centralised platforms where the aim is to gain profits from the end users and the ICO’s. Moon Money is to be mined by its MoonX Family by transacting on their platform. Each family member benefits from Moon Money’s performance and price appreciation.

 MoonX Technology and Product : MoonX is the first and only true multi-crypto exchange built on scalable and robust multi-tier architecture with isolated security layers. MoonX will be capable of supporting a capacity of over 100 million accounts with an unmatched high transaction throughput per account. MoonX’s goal is to outperform the leading stock exchanges and the crypto exchanges across the world. The framework has been designed to deliver robust business functionality across the crypto trade lifecycle in an open, agile environment. Standardized and unified operations, messaging, and data infrastructure coupled with unparalleled flexibility shall ensure users to have seamless accessibility and cater to their real needs. MoonX also allows thirdparties to integrate their own business functionalities, such as ad hoc offerings to meet the long tail needs of family members.

Achievement of the MOONX family: MoonX - World's First Collective Ownership Exchange Raises US$ 27M in a Flash

unique features:

(i)

Pure Free Trading System: MoonX formed to debunk the idea of ‘for profit’ traditional ‘centralized' crypto exchanges who make money from the end users and the ICO listings. Zero Commission Fees for users and family members: These are not chargeable once you are part of the Moon family, after all

you become one of us just by trading once. There are no listing fees for ICO projects, MoonX’s mission is to promote and help other coins to be traded with more liquidity and freedom.

Revolutionary Coin Mechanism :

(ii)

Every user gets Moon Money reward and becomes a Moon Family member with potential profit dividend, decision making and voting rights included. Moon Money is mined by all community members based on the contribution to Moon Family and they eventually benefit from the performance and appreciation of Moon Money. Rewards early users with Moon Money and transaction fee shall be reimbursed with Moon Money. MoonX would enable coin holders to make decision based on their own willingness via smart contract which would be built in the future.

(iii)

Military Level Tech and User -Friendly Product : Real Stock Exchange Technology developed by Global Stock Exchange Leaders. MoonX aims to offer a comprehensive cryptocurrency trading platform with ‘crypto-to-crypto’ and expanding the same to ‘fiatto-crypto’ trading engines. MoonX will offer clients an ‘end-to-end trading system’ with a buy-side and sell-side hooking back directly into fiat currency system. MoonX shall create Fund of Funds to support new projects which support Moon Ecosystem and address critical problems in the real world. Moon Money would become the transaction hub to support other crypto assets.

Performance of MOONX : ICO Announcement: Individual ICO : Minimum is 0.05 BTC, Maximum is 2 BTC, No lock up. Institutional ICO : Minimum is 5 BTC, Maximum is 30BTC, 6months(50% unlock every 3 months)

Private : 12 months(25% unlock every 3 months).

Coin distribution plan:



Coin Name – Moon Money



Ticker – MM



Platform – Native coin



Total supply – 2.4B MM



Private Round – 28,626,000 USD(closed)



ICO price – 1BTC=80,000 MM



Privet round discout – 24.5 %



Hard capital – 300 BTC



Accepted currency – BTC & USDT



Bounty – available



Restricted area – USA



KYC - required



Allotment

Coin Allocation :



30% : coins would be distributed in 8 years, detailed coin mining plan would be released in the MoonX technical whitepaper.



20% : coins are held by early sponsors and strategic investors. MoonX sets very selective standards on early sponsors and investors.



20% : Family executives are the executive team who are the early founders and serve the team



10% : Allocated for marketing and operations of the Moon ecosystem.



10% : Ecosystem fund invested in the form of FOF and it avoids direct investment to set MoonX as a purely independent platform and supports a good crypto project to grow the Moon ecosystem in the long run



10% : Moon cyrrency fund acts as a central bank, whose major role is to stabilize the price growth of Moon Money and sets currency regulations to make Moon Money sustainable in the long run.

Future plans: 

MoonX is planning to integrate and release Alpha version coming October



This coming November construction is already completed.



On December the cryogenic Bunker is already installed.



MoonX plans to launch MoonX Pro this coming December up to January 2019

SWOT Analysis:

SWOT analysis is a frame work, which is very popularly used to evaluate company’s competitive position by identifying its strengths, weaknesses, opportunities, and threats. SWOT analysis is an assessment model that tells what an organization can do and cannot do , and also specifies its potential opportunities and threats.

Analysis of MoonX using SWOT frame work:

Strengths: 

Ease of use. Moonx exchange is an easy to use system.

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Security features. Highly secured and secrets are not saved in centralised system.

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Currencies available. Support multi currencies

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Transaction fees. Cheaper than any other exchanges

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Eliminates the need to have physical cash.

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Latest technology

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Economy, effectiveness and efficiency.

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Availability on most of the exchanges.

Weakness:



Increase customer size

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Exploring various marketing strategies

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Unregulated industry.

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Ever increasing transaction costs as more transactions enter blockchain.

Opportunities : 

Alternative to collapsed currencies.

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Use in isolated economies.

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Mass – adoption as a currecy or asset

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Long term industry application

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Extensive use in disruptive technology

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Replacing fiat currency, use as a single global currency

Threats : 

Cyber insecurity and cyber vulnerabilities.

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Regulation by governments.

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Use of illegal activities.

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Closure of exchanges.

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Political interference.

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Bad publicity, bad PR (public relationship).

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Yet unknown vulnerabilities of the underlying blockchain technology.

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Irresponsible borrowing by investors to fund purchase leading to systemic risk.

McKinsey 7-S Frame Work : The McKinsey 7-S framework. Developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.

The 7-S model can be used in a wide variety of situations where an alignment perspective is useful, for example, to help you: 

Improve the performance of a company.

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Examine the likely effects of future changes within a company.

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Align departments and processes during a merger or acquisition.

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Determine how best to implement a proposed strategy.

The McKinsey 7-S model can be applied to elements of a team or a project as well. The alignment issues apply, regardless of how you decide to define the scope of the areas you study.

The Seven Elements The McKinsey 7-S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements: 

Hard elements : strategy, structure, systems.



Soft elements : shared values, style, staff, skills.

"Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems. "Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.

The Mckinsey 7S Model:

7S Model for MooNX :

 Structure: Coordination, task allocation, supervision levels, line of reporting etc Founding Chief Executive Directors CTO H R Manager Technology Manager Blockchain Developers Marketing head

 Strategy : Plan to create competitive advantage Trading from one cryptocurrency to any other cryptocurrency with high security and true peer to peer trading of cryptocurrency.

 Systems : Process or supporting systems like financial reporting, payment systems,etc. Processing millions of trading exchange request faster and safer.

 Shared Values : Core values, culture of the company and how the business is carried on. MoonX is a platform of the future for trading crypto assets that is decentralized co owned by the entire MoonX family.

 Style : : leadership style adopted within the organisation. Democratic leadership.

 Staff : Number and employee categories in the organization. Founding chief executive Directors CTO H R Manager and team Technology manager and team Marketing head and team.

 Skills : Competencies and Skills of the employees. Managing Exchange tools, Blockchain development, Handling customer queries, working with cryptocurrency and altcoins.

CHAPTER – 3 PROBLEM STUDY

Problem Identification : Prboblem definition : “Improving online promotions for cryptocurrency” The importance for marketing the cryptocurrencies or ICO’s is facing many challenges as far as in any other industry . Online marketing is the key to the proper growth of the business world . The crypto market is already getting crowded and in order to sustain and see success there should be maximum utilization of the online promotion tools and technologies .

Fishbone Model: The Fishbone model is also called as Cause and Effect Diagram, Fishbone Diagram, Ishikawa Diagram, Herringbone Diagram, and Fishikawa Diagrams. Cause and Effect Analysis was devised by professor Kaoru Ishikawa, a pioneer of quality management, in the 1960s. The technique was then published in his 1990 book, "Introduction to Quality Control."

Steps for effective use of Fishbone model are as followed : 

Write down the exact problem you face.

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Identify the factors that may be part of the problem.

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Brainstorm possible causes of the problem that may be related to the factor.

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Investigate the most likely causes further.

A fishbone diagram is useful in brainstorming sessions to focus conversation. After the group has brainstormed all the possible causes for a problem, the facilitator helps the group to rate the potential causes according to their level of importance and diagram a hierarchy. The design of the diagram looks much like a skeleton of a fish. Fishbone diagrams are typically worked right to left, with each large "bone" of the fish branching out to include smaller bones containing more detail.

Application of Fishbone model to analyse the Problem statement:

Fishbone Diagram  Inadequate Product market: About 60% of ICO fail at the initial stage because their services or products does not have any value and demand in the market. So, it is very important that before you launch and announce an ICO, make sure that it has an audience who has need of your offering. Most of the ICOs today requires selling token to raise the capital. For such ICOs it is important that their ICOs have caught up the SEC and related regular bodies soon to protect themselves from long-term failure.

Additionally, it is very important the people who are launching the ICOs should have a defined market which is completely aware of the project, it is also imperative to build trust and reputation to make your ICO successful.

 Failure to create the brand identity: People are not brand conscious. They invest in a project which sounds good forgetting it should look good too. This includes every element of websites like content, logo, visuals, fonts, ICO white paper, and selection of colors etc. The people will question your brand if they find your website unprofessional.

ICO is not just about your idea but also the marketing and branding. The face of your offering is your brand, that’s why it is very important that you spend quality time to create the brand identity as it will lead to many other communication and marketing aspects in the future.

 Unrealistic objectives and budgets: The unrealistic budgets and objectives of the new business always put the business in difficulties. The higher you set your objectives, the more budget you will need to achieve those objectives and so is the need to spend on the marketing, PR, development, design, and content. So, to avoid this, make sure that the objectives of your offering should match the scope of your project. Before going to the public sale, it is ideal to conduct a private sale first if your team is small for an ICO.

 Lack of audit, reporting, and measurement: Majority of ICO which has failed was launched by newcomers who have very limited knowledge of the online marketing techniques and do not understand the need for continuous auditing, measurement and reporting to improve their ICOs. To avoid this, make sure that you know about the tools

which can help you to do all these things, the tools which allow you to track the conversions and user behavior, e.g. Google Analytics.

Remember that ICO is like a product or service which cannot survive until and unless you are doing marketing the right way. You need to understand who is your audiences are, how to find them, and then convert them to make your ICO successful.

Suggestions to solve the problem : 

Build a presentable website and Creatives for Your ICO.



Publish on Blogs, Medium, and Steemit.

 Increase the value of PR (press release) and Media Outreach.  Importance of Community and Social Media Management for ICOs

Effective ides to market ICO’s: Facebook groups: There are any number of groups on Facebook that regularly discuss ICOs, blockchain, and cryptocurrencies.

Reddit: There are many channels that are very popular with the cypto community. A high level of exposure can be achieved through the creation of subreddits or simply by commenting on existing threads. Many crypto subreddits require a minimum account age and karma, so be sure to become active well before you launch your ICO.

Telegram: This is a social media channel that should never be ignored. Telegram is very much the next generation of community building and

messaging. It has been warmly embraced by the crypto and blockchain communities.

Quora Discussions: Quora is proving to be a valuable channel for coverage of ICOs.

LinkedIn Groups: There are a number of LinkedIn groups with members running into the tens of thousands such

YouTube: A YouTube channel allows you to host promotional and informative videos about your ICO.

Instagram: This platform is not closely associated with the crypto community. However, if you have strong visual content or your ICO is geared towards a community that is active on Instagram.

 Create a Winning SEO Strategy: In the immediacy of marketing ICOs, search engine optimization (SEO) gets wrongly overlooked. As more and more restrictions are applied to advertising ICOs, SEO becomes increasingly important. There are two SEO strategies that should be formulated. The first is an on-page strategy, making sure that your website is optimized for SEO in sync with a well-researched keyword and content generation strategy. Then there is the off-page strategy which should encompass intelligent and organic link building, online reputation management, and branding.

 Optimizing Your ICO Through Email Marketing.  Bounty Program: A bounty programs is one marketing channel that is proving to be an effective part of any ICO marketing strategy. Structured as an incentive-based rewards methodology, bounty programs provide compensation and incentives that can be used to attract investors and other stakeholders to your ICO. Most ICO marketing campaigns operate some form of bounty program, with offers

available throughout the duration of the ICO. Ideally, your bounty program should start as soon as possible and end near the pre-sale.

 ICO Listings ` Getting your ICO on specific sites which list ICO’s are great for preICO coverage and exposure.

 Have an Engaging Story to Tell You have a product and now you need to tell the world about it. Make your ICO story interesting, engaging, and understandable in a way that will inspire people to buy into your vision and inspires them enough to invest in your mission.

 Know Your Audience Despite the increasing global popularity of ICOs, a successful ICO marketing strategy still needs to be focused on the right market segments to produce the best and most cost-effective results.

 Transparency Put simply, if your offer isn’t transparent, it could act as a repellent towards potential investors. People want to know exactly what they are buying into, as well as know the people behind the product. A lack of transparency will reduce interest and negatively affect the amount of money you are able to raise.

 Compliance Compliance is an area that is becoming increasingly important for ICOs in 2018 and beyond. Rules and regulations are being put in place which will need to be adhered to. Although still considered to be a grey area in many countries, implementing a compliant process, as per the SEC guidelines, from the very beginning can only help your long-term ICO strategy.