Financial Research

Deep Research

Deep Research

CompoSecure Holdings, LLC ("CompoSecure," or the "Company") designs and manufactures metal payment cards for many of the world's leading financial institutions. The Company was the first to produce a metal card in 2003 in partnership with American Express and has since forged deep relationships with additional issuers/resellers such as JP Morgan Chase, Capital One, and Fiserv ( Slide 12 ). The Company produces cards for a variety of proprietary and co-branded programs and has demonstrated a history of improving security and customer experience through various design improvements. The Company is now leveraging its experience in secure payment hardware solutions to enter the digital asset space starting with the launch of its Arculus Cold Storage Wallet. * COMPOSECURE ENTERS SPAC DEAL. CompoSecure and Roman DBDR Tech Acquisition Corp. (NASDAQ: DBDR), a special purpose acquisition company, recently entered into a definitive merger agreement valuing the combined entity at approximately $1.2 billion. The transaction is expected to close in Q3 2021 and proceeds from the transaction will be used to implement its growth strategy centered around the centered around the cryptocurrency cold storage and security solution, Arculus (Slide 3). * CRYPTO GOES MAINSTREAM. Digital assets have emerged as an entirely new asset class for institutional and retail investors alike. There are an estimated 100 million users across all cryptoassets and in 2020, crypto surpassed $1 trillion in total market cap (Slide 21). Recently, rising demand for cryptoassets has led to an increase in hacking activity across the entire digital asset landscape. As crypto becomes increasingly ubiquitous, the need for better security options becomes paramount (Slide 22). * DEMAND FOR BETTER WALLETS. Wallets are tools employed by crypto users to store, manage, and swap cryptoassets. There are several types of wallets exchange based, digital, hardware, and paper all of which suffer from the historically inevitable tradeoff between usability and security (Slide 8). “Cold Storage" hardware devices have become increasingly popular as digital asset holders seek secure storage solutions that are offline and offer the highest security level (Slide 24). Unfortunately, most of these hardware solutions are cumbersome USB-like devices and require a connection to a desktop, leading to a subpar user experience. * ARCULUS WANTS TO BRIDGE THE BEST FEATURES OF HOT AND COLD WALLETS. Arculus is three factor authentication (3FA) security platform created with the mission to promote digital asset adoption by offering a simple, secure way to buy, sell, and store digital assets. The envisioned platform is a multi year endeavor that commences with the launch of the Arculus Cold Storage wallet in Q3 2021. The wallet is comprised of a mobile interface through which a user can easily manage and transact their digital assets and a metal card that is applied as the third level of authentication and is where any private keys are stored in an "air gapped" environment (Slide 16). * COMPOSECURE IS POSITIONED TO BRING ARCULUS TO LIFE. A byproduct of its successful legacy business is a unique foundation upon which the Company can build its Arculus platform. The Company's manufacturing capacity can satisfy high scaling requirements, and its proprietary manufacturing processes may result in favorable unit economics for the Arculus hardware product. Further, the Company can tap into its longstanding relationships with premier card issuers to sell its wallet product via the Arculus brand or a white labeled solution (Slide 26). * RISKS. Unforeseen regulatory hurdles that raise costs and create unanticipated operational burdens, an inability to sustain and ultimately leverage business relationships with key partners, degradation of relationships with American Express or JP Morgan Chase, increased competition from within the crypto space, and slower than anticipated mass adoption of hardware wallets (Slide 31). BOTTOM LINE: The Arculus Cold Storage Wallet has yet to launch, so we lack tangible KPIs to observe, but it does appear that CompoSecure is skating to where the puck is going within the crypto industry. We expect operational cold storage wallets to gain popularity for long-term investors and digital assets traders who are cautious about leaving their assets on an exchange or a non-custodial hot wallet. If CompoSecure successfully leverages its payments industry relationships and achieves its projected unit economics, the Arculus business has the potential to make waves in crypto security. Key slides from this report...  Cover Page (Slide 1)... ARCULUS OVERVIEW (SLIDE 3)… Digital Asset Wallets Grant Owners Control and Mobility (Slide 8)… BRIDGING USABILITY AND SECURITY (SLIDE 9)... FINANCIAL SNAPSHOT AND THE ARCULUS IMPACT (SLIDE 14)... ARCULUS COLD STORAGE WALLET (SLIDE 16)...

Arculus: A wallet bridging security and usability
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CRYPTO SPECIAL REPORT: Avalanche: Building a Novel dApp Protocol for the Internet of Finance

Ava Labs is building the Avalanche protocol which expects to deliver the highest performance, most secure, and most energy efficient general-purpose cryptonetwork for highly decentralized applications, novel financial primitives, and new interoperable blockchains. Using its innovative Avalanche consensus mechanism, the protocol hopes to create a new digital crypto-native economy for frictionless real-world and digital asset exchange, composable financial application primitives and derivatives, Web 3.0 privacy-focused data and social applications, and more. Avalanche expects to scale these use cases for global userbases.  * THE AVALANCHE CORE TEAM CONSISTS OF SEASONED PROFESSIONALS AND DISTRIBUTED SYSTEMS RESEARCHERS. As the CEO and Founder of Ava Labs, Dr. Emin Gün Sirer is a former professor of computer science and networking systems at Cornell University. He developed Bitcoin-NG, a bitcoin scaling solution, and Bitcoin Covenants, a security solution. To develop the Avalanche protocol, he successfully built a team with experience in institutional finance, private markets, and technology (Slide 3). * AVALANCHE AIMS TO BUILD ON EARLIER BREAKTHROUGHS TO DEVELOP A FULLY INTERNET-NATIVE ECONOMY. Early cryptocurrencies offered global, decentralized, non-sovereign, digital money. The second wave of crypto platforms built on the core technology and enabled the creation of ecosystems of programmable dApps. These dApps included DeFi products, NFT collectibles, and other yield-generating apps and use cases. However, these platforms haven’t proven themselves to be designed for every use case. Now, a third wave of cryptonetworks are aiming to support a wider range of dApps on cheaper and faster blockchains. By offering a dApp platform with low fees, high scalability, and network interoperability, Avalanche believes it will enable the creation of a fully digital economy on a global scale (Slide 6).  * AVALANCHE IS ORGANICALLY GROWING A COMPREHENSIVE DEFI & WEB 3.0 ECOSYSTEM. Third-party developers are rapidly deploying new DeFi products on the Avalanche (Contracts) C-Chain. These decentralized applications span decentralized exchange, liquidity mining, lending, synthetic assets, and more (Slide 7). Avalanche’s unique, multi-chain framework enables core functions to interoperate seamlessly, without causing performance degradation as we see in networks that pile all activity into one chain. This is leading to rapid, precipitous growth of assets, applications, and custom implementations on subnets tailored to enterprises and institutions (Slide 9).  * NETWORK METRICS ARE COMPETITIVE WITH TOP PROTOCOLS IN TERMS OF SCALABILITY, SECURITY & SPEED. In order to host a wide range of decentralized applications and build a robust digital economy, the blockchain base-layer must offer decentralization, security, and scalability with low transaction fees. Avalanche’s mainnet already offers a transaction settlement layer with characteristics that are highly competitive with the leading staking networks and proof-of-work cryptocurrencies across these metrics (Slide 11). Additionally, AVAX’s proof-of-stake consensus incentivizes token lockups with high staking rewards (Slide 13).   * PARTNERSHIPS MAY HELP BOOTSTRAP NETWORK ADOPTION AND GROWTH. The Avalanche protocol is a young network that initially launched its mainnet in September 2020, yet it already boasts an impressive ecosystem of partners, integrations, and third-party applications. Beyond DeFi and Web 3.0, the Avalanche Foundation and Ava Labs are building out tooling and infrastructure to support a wide range of crypto products and use cases. Integrations with the leading crypto exchanges, wallets, stablecoins, and asset tokenization projects could fast track adoption and incentivize users to engage with the Avalanche network (Slide 14).  * WHAT COULD GO WRONG? Avalanche fails to execute on its roadmap, competing layer-one protocols or second-layer solutions iterate faster and deliver scalable cryptonetworks, Avalanche fails to attract significant developer mindshare and adoption.    BOTTOM LINE: ALTHOUGH THE NETWORK IS YOUNG IN ITS GROWTH AND DEVELOPMENT, AVALANCHE IMPLEMENTS AN INTERESTING CONSENSUS MECHANISM THAT MAY SUCCESSFULLY DELIVER A SCALABLE AND INTEROPERABLE CRYPTONETWORK TO ENABLE A GLOBAL AND FULLY DIGITAL ECONOMY OF DECENTRALIZED FINANCIAL APPLICATIONS AND WEB 3.0 PERSONAL DATA SOVEREIGNTY.  Key slides from this report...  Cover Page (Slide 1)... Avalanche Aims To Develop A Fully Internet-Native Economy (Slide 6)... Focused On Building Comprehensive DeFi & Web3 Ecosystem (Slide 7)... Avalanche Consensus Is Competitive With Leading Protocols (Slide 8)... ​ Building Ecosystem In Fastest Growing Crypto Segments (Slide 14)...

Avalanche: A Novel dApp Protocol for the Internet of Finance

AVALANCHE (AVAX) is a next-generation smart contracts platform that’s structured as a publicly-owned crypto network protocol. Ava Labs supports the Avalanche protocol in its mission to build a high-performing, secure, and energy-efficient cryptonetwork for decentralized applications ("dApps"), novel financial primitives, and new interoperable blockchains. Using its innovative technology approach, the Avalanche protocol is creating a new crypto-native economy for frictionless real-world and digital asset exchange, composable financial application primitives and derivatives, Web 3.0 privacy-focused data and social applications, and more. * NEXT WAVE OF THE WEB. Crypto networks like Avalanche are next-generation internet application platforms. The internet continues to evolve. Web 1.0 PC networks connected us online and gave us access to information and e-commerce payment gateways. Web 2.0 mobile-first social networks connected us to online communities while algorithms used our data to optimize user experience. Web 3.0 cryptonetworks consist of trustless community-owned protocols like Avalanche that give users back control of their data and privacy with natively embedded DeFi applications (Slide 6).  * THIRD ERA OF CRYPTO INNOVATION. Early crypto networks enabled globally decentralized digital money. The second wave of platforms built upon this core technology to enable the creation of programmable dApps, enabling DeFi products, NFTs, and other yield-generating apps. However, due to high transaction fees and slow processing speed, these platforms have served a limited set of use cases. A third wave of cryptonetworks aims to support a wider range of dApps on cheaper and faster blockchains, and usher in a multi-chain world in which there exist several ecosystems that compete on speed, security, and customization (Slide 7). * NOVEL TECHNOLOGY ARCHITECTURE. Avalanche leverages its novel consensus mechanism and unique architecture to deliver a fast and scalable solution. Avalanche is a proof-of-stake (“PoS”) network that uses a probabilistic consensus to validate transactions in a secure manner without sacrificing throughput and scalability (Slide 10). Avalanche’s unique multi-chain framework enables Avalanche to become a platform for blockchains, with separate “subnets” serving very different user needs. This structure allows for core functions native to different subnets to interoperate seamlessly, without performance degradation as witnessed in networks that pile all activity onto one chain (Slide 11).  * COMPETITIVE NETWORK PERFORMANCE. Base-layer distributed network technology protocols seeking to host a wide range of applications and build a robust digital economy are aiming to deliver an ideal mix of decentralization, security, and scalability with low transaction fees. Avalanche’s mainnet offers a transaction settlement layer with characteristics that are highly competitive with the leading proof of work and proof of stake crypto networks across various metrics (Slide 18).  * RAPID EARLY ADOPTION IS PROMISING. Avalanche’s features have made the platform ideal for many third-party developers who are rapidly deploying new DeFi products on the Avalanche C-Chain. dApps already span decentralized exchanges, liquidity mining, lending, synthetic assets, and more. As a result, the network is seeing rapid growth of assets, applications, and custom implementations on subnets tailored to enterprises and institutions being launched in a short period of time since mainnet went live (Slide 22). This growing usage has been driving a steady rise in transaction fee revenue to the network, which helps underpin the tokens’ economic value (Slide 27).  * WHAT ARE THE RISKS? Failure to execute on its product roadmap, slow distribution of network governance, slowing of developer interest, dApps don’t gain material demand, competing crypto networks take share, usage and transaction fee revenue doesn’t materialize, crypto volatility, regulatory risks (Slide 30).  BOTTOM LINE: Avalanche offers a completely new method of consensus and a level of customization that other existing layer 1 protocols don’t currently provide. While the network is young, its level of adoption is a promising indicator that developers are taking notice of its benefits and are hoping that Avalanche can deliver on its promise of a scalable and interoperable digital economy.  Key slides from this report...  Cover Page (Slide 1)... Avalanche May Offer A Solution To Network Congestion (Slide 10)... Avalanche Ethereum Bridge (AEB) Overview (Slide 15)... Avalanche Ethereum Bridge (AEB) Overview (Slide 16)... Building Ecosystem In Fastest Growing Crypto Segments (Slide 22)... RECENT PLATFORM UPGRADES AND PERFORMANCE (SLIDE 27)...

Bitcoin SV: BSV Blockchain-as-a-Service (BaaS) for big data applications

BSV is the native token of the Bitcoin SV blockchain. The BSV blockchain uses a public software protocol derived from the Bitcoin codebase. BSV has restored certain Bitcoin technical protocol features to target use cases that require massive scaling. One key adjustment BSV implemented was removing any default limit on block size. The approach is designed to enable higher throughput and lower transaction fees, allowing developers to build applications that send micropayments (even fractions of a U.S. cent) for user activity, and data-rich enterprise and consumer decentralized applications ("Dapps") with the BSV blockchain serving as the underlying public infrastructure.  The BSV ecosystem also seeks to create a “Metanet” that uses BSV’s micropayment and big data capabilities to power a better, more commercial Internet where users’ online activity and data can be monetized through the BSV blockchain and digital currency (rather than having users rely upon today’s “free” online and social media services that trade upon selling consumer data); A crucial step in establishing the Metanet as a widely used protocol layer is enterprise adoption, which the BSV ecosystem has been working towards since launch. BSV companies have been building Blockchain-as-a-Service (“BaaS”) infrastructure platforms to simplify the process of deploying applications on the network to increase adoption.  * TRANSITIONING BIG BUSINESS TO WEB 3.0: The Internet’s (“Web 2.0”) current centralized infrastructure facilitates a data oligopoly in which a few large players ("Big Tech") control many of the access points and much of the value accretion of Internet-native applications. As an alternative, blockchain developers are constructing decentralized Web (“Web 3.0”) approaches that aim to offer users the ability to control, authorize access to, and monetize their own data – because the data can be stored or managed on the BSV blockchain, and users can be rewarded in small BSV micropayments for their data. * APPROACHING BLOCKCHAIN BIG DATA APPLICATIONS: BSV is one of the 3 main Bitcoin source code chains (a split from the Bitcoin Cash (BCH) chain, which itself split from the BTC codebase) but the BSV and BTC networks are going after very different use cases. BSV is positioning itself as a Web 3.0 platform upon which Dapps and enterprise data applications are built that can store data directly on the main blockchain layer (efficiently, for low fees) due to its unbounded block size cap. This approach has trade-offs but is unique relative to other blockchains as it allows for certain types of big data applications that may not be well-suited for other networks.  * BSV BLOCKCHAIN-AS-A-SERVICE (BAAS) INFRASTRUCTURE SOLUTIONS: To help make app development and enterprise adoption of BSV simpler, BSV companies have been working towards developing infrastructure and tooling for the network. At a high level, the BSV Metanet is an infrastructure layer that organizes the storage of and access to all types of data on the public BSV blockchain. The base layer BSV blockchain can serve as the underlying ledger for middleware tooling for developers as well as end-user applications for both consumers and enterprises.   * EARLY BUT INTERESTING APPLICATIONS EMERGING: BSV has seen businesses across a number of industries including logistics, healthcare, and financials implement applications on its blockchain network. Some examples we discuss in this report include (1) Domineum (Page 19), a company that will push e-government services, cargo tracking, real estate title, and other data transactions to the BSV blockchain, (2) Transmira (Page 20), a location-based XR platform blending AR & VR, (3) Veridat (Page 21), a platform for data integrity, first focusing on data generated by the pharmaceutical industry’s clinical trials, (4) MatterCloud (Page 25), a BSV infrastructure solution for developers to implement payments, transaction storage, and smart contracts, and (5) DotWallet (Page 26), a digital wallet allowing users to access and use BSV and other digital assets, and an infrastructure platform to make it easier for developers to build with the BSV wallet .    * CONTROVERSIAL HISTORY IS A RISK BUT CRYPTO MATURING & MAXIMALISM FADING: We recognize that there is a subset of the crypto community that does not have a favorable view of certain BSV supporters and the BSV coin or anyone who associates with it as an extension. We are not here to take a stance on the associated controversy beyond saying that building a community around any crypto network is critical for success, and the extent to which polarization does or does not limit BSV adoption will be key. We are seeing shifting views in the crypto industry where new participants are more open to different tech trade-off’s (i.e. BSC) and communities (i.e. DOGE) and a new wave of retail Robinhood investors who may not know or care as much about BSV’s prior controversies. How this will unfold is a risk to consider.  BOTTOM LINE: WE THINK THAT BSV IS TAKING A UNIQUE TECHNOLOGICAL APPROACH TO ITS NETWORK AND THAT PEOPLE ARE BUILDING REAL APPLICATIONS ON IT. EMERGING BSV BAAS INFRASTRUCTURE IS BEING CONSTRUCTED TO MAKE ADOPTING THE BLOCKCHAIN EASIER. IF THE COMMUNITY CAN MOVE BEYOND ITS EARLY REPUTATIONAL CRITICISMS AND INCREASE ADOPTION, THIS WOULD BODE WELL FOR THE NETWORK’S FUTURE.  Key slides from this report...  Cover Page (Slide 1)... BSV Blockchain Overview (Slide 3)... Blockchain as a Service (BaaS) (Slide 6)... BSV’s Metanet Empowers Users To Take Control Of Their Data (Slide 12)... BSV’s Existing Application Landscape (Slide 16)... BSV’S BLOCKCHAIN SCALABILITY TO HANDLE MORE DATA (SLIDE 29)...

CRYPTO SPECIAL REPORT: IOTA 2.0: Network Upgrade Holds Promise For Adoption & Growth

IOTA (MIOTA) is an alternative Distributed Ledger Technology (DLT) platform, which uses the “Tangle”, a Directed Acyclic Graph (DAG), to enable applications primarily for the Internet of Things (IoT). IOTA is scheduled to undergo a two-part protocol upgrade, IOTA 1.5 (Chrysalis) and IOTA 2.0 (Coordicide) (Slide 2), aimed at implementing a series of major DLT technology advancements to improve network functionality and achieve greater decentralization. If successful, the upgrade could move IOTA towards its longterm goal of becoming adopted as a standard for the IoT industry. Should IOTA be adopted as a standard, it could lead to $700B+ in network economic activity from core IoT markets (Primer Report), which could translate to $280B in token network value (Slide 12). Execution and market acceptance remain key risks to success. • IOTA IS MOVING FORWARD WITH ITS TECHNICAL ROADMAP AND EXPECTS CRITICAL RELEASES IN 2021. Last year, IOTA released the Pollen testnet, which is the first phase of IOTA 2.0 on the network’s path towards full technical decentralization. In the coming weeks, IOTA expects to release the Nectar testnet which the team believes will deliver a scalable, secure, decentralized network architecture without technical tradeoffs. Additionally, IOTA expects to release Phase 2 of Chrysalis (IOTA 1.5) this year which will introduce protocol enhancements that enable smart contract functionality, tokenized assets and stablecoins. These upgrades enhance network functionality and could enable new use cases for consumer and enterprise IoT applications. • IOTA 2.0’S NEW ARCHITECTURE AIMS TO ACHIEVE CRITICAL TECHNICAL MILESTONES. IOTA believes fully serving new open infrastructure applications requires a network that’s open sourced & permissionless, decentralized & securely governed, scalable & lightweight, modular & future proof with fee-less value & data transaction finality in seconds (Slide 10). Many networks offer such features but only with varying combinations and degrees. IOTA 2.0 is being designed with the plan of being the first network to deliver all these DLT features without tradeoffs (Slide 4). • ENVISIONING AN OPEN INFRASTRUCTURE LAYER FOR FAST AND FEE-LESS DATA-BASED IOT DAPPS. The Tangle is being built with the goal of connecting the digital and physical world by providing a data and value trust layer for enterprise IoT applications (Slide 7). This means, if successful, IOTA may emerge as a solution across mobility, supply chain, smart cities, energy grids and industrial IoT. • FOCUSING EFFORTS ON CORE DEVELOPMENT MODULES AND ENHANCED USER EXPERIENCE TO INCREASE ADOPTION. Last year, IOTA focused development efforts on three core modules they deemed crucial for real-world adoption by their enterprise partners. IOTA Access, Streams, and Identity enable production-ready IoT & supply chain use cases (Slide 8). As a result of these efforts, the IOTA Foundation (IF) has inked numerous enterprise partnership and customer deals ranging from retail e-commerce, smart city infrastructure, healthcare digital identity and other applications. IOTA will soon be releasing the Firefly wallet, which will be the primary gateway for users to access IOTA 2.0 (Slide 9). As designed, Firefly will have a sleek user interface and enable users to access all the network’s new features as they launch. • IOTA 2.0 TESTNET HAS SHOWN EARLY BUT ENCOURAGING STATS. IOTA 2.0’s early testnet stats offer encouraging glimpses of potential network improvements across security, scalability, and decentralization, that are nearly on par or comparable against peers based on several proxy measures (Slide 11). The IOTA team expects the network stats will continue to see improvement. • WHAT COULD GO WRONG? Upgrade may fail, not perform as expected, or not be deemed a major DLT advancement by the market. Attack-vectors or bugs may emerge. Alternative market evaluation models. Failure to gain product/market fit. Competing tech. BOTTOM LINE: IOTA’S FEE-LESS ARCHITECTURE OFFERS A DIFFERENTIATED APPROACH FOR SERVING DATA-BASED IOT DAPP USE CASES. FINAL TECHNICAL QUESTIONS AND EXECUTION RISKS REMAIN KEY, BUT IOTA 2.0 PROPOSES REAL TECH IMPROVEMENTS THAT MAY IMPROVE IOTA’S ADOPTION AND GROWTH. WE’LL BE WATCHING HOW IOTA 2.0 MODULE IMPLEMENTATIONS ARE ROLLED OUT OVER THE COMING QUARTERS FOR KEY SIGNS OF PRODUCT-MARKET FIT AND TECHNOLOGY VALIDATION. KEY SLIDES FROM THIS REPORT... IOTA’S UPGRADE ROADMAP AIMS TO ACCELERATE ADOPTION & GROWTH (SLIDE 2)… DESIGNING THE TANGLE TO CONNECT BILLIONS OF IOT DEVICES (SLIDE 5)… OFFERING AN OPEN INFRASTRUCTURE LAYER FOR ENTERPRISE USE CASES (SLIDE 7)… GAINING A GLIMPSE AT IOTA 2.0 POTENTIAL FROM TESTNET STATS (SLIDE 11)…

  • Deep Research
Dec 2, 2020

CRYPTO SPECIAL REPORT: Horizen Update: ZEN Moving Higher As Halving Approaches

At the beginning of Q4, we released our report Horizen: Web 3.0 Platform Targeting Big Tech Super App Disruption. Horizen (ZEN) is a next-generation internet platform structured as a cryptonetwork that gives users control over their online data with its blockchain cloud computing platform for money, messages, media, and third-party decentralized applications. During the quarter, the ZEN token appreciated 145%, benefited by a 70% gain in Bitcoin, new partnership deals with Horizen and leading crypto companies, and the narrative around Horizen’s network nearing its first Halving Event, which is scheduled for today, Wednesday December 2nd, 2020. * HORIZEN IS A FAST-GROWING DECENTRALIZED CLOUD APP ECOSYSTEM AIMING TO CHALLENGE BIG TECH. Web 3.0 decentralized internet alternatives like Horizen have the potential to become disruptive over the next decade by solving many issues plaguing Big Tech. Web 3.0 is a vision for a better and more open internet where crypto protocols replace centralized application companies. Horizen offers a smart contract capable and fully customizable decentralized cloud network that allows any developer to build trustless decentralized applications that are not controlled by any organization. * RECENT PARTNERSHIPS WITH LEADING CRYPTO COMPANIES SHOWCASE HORIZEN’S TECHNOLOGY. In November, Horizen announced their partnership with Celsius, one of the leading “CeFi” (Centralized Finance) crypto credit and loan facilities. Celsius and Horizen will work together to build Celsius its own fully decentralized and privacy-preserving blockchain using Horizen’s zero-knowledge toolkit and Zendoo sidechain interoperability protocol. The proof of concept will be built in its own entirely decentralized environment, and enable the functionality currently available on the platform, including user account creation, a debt registry, linking registered debt to user profiles, and executing state-transition operations such as posting collateral, initiating loans, making payments, and updating status of debt instruments. Additionally, DeFi identity and credit system Sikoba announced their intention to build a customized sidechain on Horizen to safeguard financial data transactions. Integrating Horizen’s sidechain technology, Zendoo, into Sikoba’s platform will allow for an added layer of security and transparency for Sikoba’s users. By layering the two chains and utilizing Zendoo, Sikoba can establish trust that its users’ debts and credits are properly registered. * FIRST SUPPLY HALVING EVENT FOR HORIZEN NETWORK ON WEDNESDAY DECEMBER 2ND, 2020. In order to incentivize network participants and bootstrap growth of the network, the network issues a block reward of newly minted ZEN every 2.5 minutes awarded to secure and super nodes (20%), miners (60%), and the Horizen DAO Treasury (20%). Similar to Bitcoin, the network has a 21-million-unit cap with a regular four-year halving cycle in which the block reward is cut in half every four years. The network’s first halving will cut the block reward in half from 12.5 ZEN to 6.25 ZEN, representing network annual inflation of ~10% post-Halving. Our analysis of halving events for other cryptonetworks indicates the event could be a positive price catalyst over the coming year if historical trends continue. * CRYPTO RETURNS 1-YEAR AFTER HALVING EVENTS HAVE AVERAGED 94% WHICH COULD BODE WELL FOR HORIZEN. Among Proof-of-Work (PoW) crypto assets, Bitcoin (Nov. 2012, Jul. 2016, May 2020), Litecoin (Aug 2015, Aug 2019), Bitcoin Cash (Apr. 2020), Bitcoin SV (Apr. 2020), and Zcash (Nov. 2020) have all experienced block halving events. During the current mature market period (i.e. excluding BTC 2012 halving 600% +1yr return), the average return of the crypto assets with at least one year of post-Halving data was 94.2%. If history is any guide, and current demand holds constant, the reduction in new supply may boost the price of ZEN. * WHAT COULD GO WRONG? Horizen post-Halving returns could be different from the historical returns of other comp crypto assets. BOTTOM LINE: Horizen is a new type of internet platform that’s a competitor to watch in the race to replace Big Tech. Recent price performance indicates the market is starting to take notice. Horizen’s progress towards building out its ecosystem and forming partnerships to deliver real world use cases suggest the ZEN token could see increased organic demand in 2021. An increase in demand alongside reduced supply post-Halving could serve as tailwinds for positive performance. HIGH PROFILE PARTNERSHIPS DELIVERING REAL WORLD UTILITY (SLIDE 2)... HORIZEN INFLATION RATE TO BE HALVED ON DECEMBER 2ND, 2020 (SLIDE 3)... ASSETS HAVE EXHIBITED POSITIVE PERFORMANCE POST-HALVING (SLIDE 4)...

  • Deep Research
Nov 3, 2020

CRYPTO SPECIAL REPORT: Flexa: On a mission to make digital assets universally spendable


  • Deep Research
Oct 22, 2020

CRYPTO SPECIAL REPORT: Zilliqa: Making a competitive play to capture the ASEAN Open Finance Market

For a full copy of this report in PDF format please click this link. Zilliqa Research Pte. LTD. (“the Company”) is the software and services company behind development of the Zilliqa DLT Network. The Singapore-based Company was founded in 2017 and is focused on refining Zilliqa’s DLT technology and deploying...

  • Deep Research
Oct 1, 2020

CRYPTO SPECIAL REPORT – Horizen: Web 3.0 Platform Targeting Big Tech Super App Disruption

For a full copy of this report in PDF format, click this link. Horizen (ZEN) (“Horizen”) is a next-generation internet platform structured as a publicly traded Distributed Ledger Technology (“DLT”) cryptonetwork that was launched in Q2 2017. Horizen gives users control over their online data with its blockchain cloud computing platform...

  • Deep Research
Aug 21, 2020

CRYPTO SPECIAL REPORT - Bitwise: Leading Crypto Index Funds & New Alpha Opportunity

For a full copy of this report in PDF format, click this link. Bitwise Asset Management, Inc. (“Bitwise” or “Company”) is a San Francisco-based specialist asset manager founded in 2017. The Company pioneered the first and largest cryptocurrency index fund and is a rising-star provider of liquid, low-cost crypto funds....

  • Deep Research
Jul 28, 2020

CRYPTO SPECIAL REPORT: BSV - Business Use Cases of the Bitcoin SV Blockchain

For a full copy of this full report in PDF format click this link. Bitcoin SV (BSV): Blockchain gets down for business by solving key challenges and enabling new opportunities. BSV envisions a world where all transactions, digital activity, and data exist on a single public blockchain that functions as...

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