Who Killed JFK? The Story of The Most Slept on Crypto Play
A Deep Dive into the Crypto Market and one Company that is trying to bridge the gap between Crypto and the Nasdaq.
Welcome back to another addition to Smartrick’s Picks, today I will be covering something new completely to my page. Today’s company is a SPAC or special purpose acquisition company sometimes called a blank-check company. (To learn more about a SPAC) For this Deep Dive, I enlisted help from another great DD artist @marksizzle from #SizzlinStocks.
Executive Summary: Diginex is a Hong Kong-based Blockchain Technolgy company with offices all over the globe. CEO Richard Byworth has been in discussion with over 30 nations who have expressed interest in a form of digital currency. Diginex offers a wide variety of services to include:
Mining via their 20,000 GPUs in their Western European facility (in which they target Security Tokens)
Enterprise Blockchain solutions via Diginex Trust (partnership with Microsoft)
Digital Asset storage (DigiVault)
Large institutional investors (to include the UK and GCC Royal family)
Introduction:
Today’s company of discussion is Diginex, which announced on July 10th, 2019 it would be merging with 8i Enterprises Acquisition Corp. (NASDAQ: JFK) Diginex would become the first publically-traded digital asset and crypto exchange on the American Stock Market. The company based in Hong Kong will serve its clients on a global level. The group’s funds will be insured via Singapore’s Payment Services Act and will be regulated under Singapore and SFC regulations.
The company maintains offices aimed at serving institutional investors in Hong Kong, Toyko, London, and Berlin. It estimates an initial enterprise value of $276 Million USD. Diginex seems to be well-positioned in the future of digital securities which the World Economic Forum forecasts to be 10% of the world’s GDP by 2027 at $13 trillion USD.
The consummation of these businesses is projected to occur in Q3 before September 30th.
In this Deep Dive, I will go over the following:
Overview of CryptoCurrency
Overview of Blockchain Technology
Overview of Crypto Tokens
The History of Diginex (Pre Filling for Reverse Merger )
The History of Diginex (Post Signing LOI with 8i cquistionCorp)
This Deep Dive will hit the following topics
Their Platforms
Diginex Access
DigiVault
Partnerships
Executive Team
The path forward for Diginex (Summary/Assessment)
Smartrick’s Closing Comments
Overview of CryptoCurrency
What Is a Cryptocurrency?
A cryptocurrency is a digital asset or virtual currency that is safeguarded by cryptography, which makes it nearly impossible to counterfeit. Most cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger implemented by a system of computers. The defining purpose behind the use of cryptocurrencies is that they are usually not circulated by any central authority, which allows them to be theoretically immune to government interference or manipulation.
Advantages and Disadvantages of Cryptocurrency
Advantages
Cryptocurrencies make it easier to transfer funds directly between two parties, without the need for a trusted third party (or middle man) like a bank or credit card company. These transfers are instead bound by the use of public keys and private keys and different forms of incentive systems, like Proof of Work or Proof of Stake. In today’s cryptocurrency systems, a user's "wallet," or account address, has a public key, while the private key is known only to the owner and is used to sign transactions. Fund transfers are completed with minimal processing fees, allowing users to avoid fees charged by banks or financial institution
Disadvantages
The semi-anonymous nature of cryptocurrency transactions makes them well-suited for a host of illegal activities, such as money laundering and tax evasion. However, cryptocurrency advocates often highly value their anonymity, citing benefits of privacy like protection for whistleblowers or activists living under repressive governments. Some cryptocurrencies are more private than others.
Overview of Blockchain Technology
In short, blockchain is an encrypted digital database shared by several parties in a distributed network. All transactions that occur on the network are recorded, verified, and stored in a database. Transactions are transmitted to all network participants, creating a fixed transaction log.
Blockchain is built on technology, where many copies of the data exist over a network, rather than a single database. This creates no centralized authority to control or manipulate the data as that data exists across the entire network which participants can access in a near real-time. Since blockchain is decentralized it allows for a faster, less costly transaction (cutting out the middle man).
JP Morgan breaks down the benefits of blockchain technology simply as:
View 101BLOCKCHAINS breakdown of how these companies are utilizing blockchain technology
Companies of Note:
ional Reads:
Overview of Crypto Tokens
Crypto tokens, which are also called crypto assets, are special kinds of virtual currency tokens that reside on their own blockchains and represent an asset or utility. Most often, they are used to fundraise for crowd sales, but they can also be used as a substitute for other things.
For example, one can have a crypto token that represents x number of customer loyalty points on a blockchain that is used to manage such details for a retail chain. There can be another crypto token that gives entitlement to the token holder to view 10 hours of streaming content on a video-sharing blockchain. Another crypto token may even represent other cryptocurrencies, such as a crypto token being equal to 15 bitcoins on a particular blockchain. Such crypto tokens are tradable and transferrable among the various participants of the blockchain.
In essence, the cryptocurrencies and altcoins are specific virtual currencies that have their own dedicated blockchains and are primarily used as a medium for digital payments. On the other hand, the crypto tokens operate on top of a blockchain that acts as a medium for the creation and execution of decentralized apps and smart contracts, and the tokens are used to facilitate the transactions.
Crypto tokens are usually created, distributed, sold, and circulated through the standard initial coin offering (ICO) process that involves a crowdfunding exercise to fund project development.
These crypto-assets often serve as the transaction units on the blockchains that are created using the standard templates like that of the Ethereum network that allows a user to create tokens. Such blockchains work on the concept of smart contracts or decentralized applications, where the programmable, self-executing code is used to process and manage the various transactions occurring on the blockchain.
Types of Crypto Tokens
Utility Tokens
Utility tokens are integrated into an existing protocol on the blockchain and used to access the services of that protocol. They are not created for direct investment like security tokens but can be used for payment of services within their specific ecosystems. The relationship between a platform and a utility token is synergistic, as the platform provides security for the utility token while the token provides the network activity necessary to strengthen the platform’s economy. For example, Dai is integrated into Axie Infinity, a digital-pet universe with a player-owned economy, providing players with a stable in-game currency. Other projects, such as Cryptocup, leverage Dai stability to provide a better experience for users.
Security Tokens
The term “security token” emerged as a result of rising regulatory concerns. Regulatory authorities, such as the U.S. Securities and Exchange Commission, sought to specify cryptocurrencies using terminology that didn’t wrestle with existing legal definitions.
Generally, a security is an instrument issued by a company, trust, government, or other legal entity that memorializes an ownership interest and provides evidence of a debt, a right to a share of earnings, a right in property distribution, or other similar legal rights. Types of securities include, among others, bonds, debentures, notes, options, shares, and warrants, and may be traded amongst investors or otherwise freely transferable. While not yet ubiquitous, security tokens are tokens that serve as direct, on-chain representations of real-world securities or tokens that are on-chain instruments serving a similar purpose for blockchain projects and/or digital assets.
In a case where a token represents ownership of an off-chain asset, such as real estate, equipment, payable invoices, or a business, similar to a share of stock, the security token’s value is directly tied to the asset’s valuation; the more valuable the asset, the more valuable the token.
The cool thing about Security tokens
Equity (Platform) Tokens
Equity tokens function more like a traditional stock asset. In other words, equity token holders possess some form of ownership in their investments. Their tokens represent how much ownership percentage they actually have. In most instances, equity tokens represent a third-party asset, property, or venture. Equity tokens come in many forms:
Stocks
Futures
Options Contracts
Tokenized Real Estate
Tokenized Ventures
Equity tokens continue to see the most use in real estate crowdfunding platforms such as Atlant. These platforms allow investors to spread their funds more freely across the market. Real estate equity tokens represent a share of ownership in a particular property. This strategy enables investors to join multiple investments with less capital. Additionally, these platforms lower the entry bar for real estate investments and facilitate more market activity.
The History of Diginex (timeline)
MTI invests into leading DLT service provider Diginex- March 31st, 2018
MTI-Leading Japanese content distribution platform today announces a strategic investment into Diginex, a Hong Kong-based best-in-class full services provider for Distributed Ledger Technologies (DLT) is 125 million USD net sales.
MTI has invested US$3 million into Diginex, which will expand its footprint with new high-performance computing facilities across Asia and Western Europe and to increase the company’s software development capabilities for large scale “turn-key” projects.
Diginex sells stake in High Performance Computing unit to Hong Kong-listed Madison Group Holdings for US$ 60 million. April 27, 2018
Tencent investment Madison Group agreed to a purchase of 51% of Diginex’s GPU farm. The USD 60 million investment by Madison allows Diginex to fast track the expansion of their GPU mining operations in Western Europe where they now have 20,000 GPUs in partnership with leading hardware suppliers, power and security providers in order to build one of the world’s most secure and efficient GPU-based cryptocurrency mining and
HPC data centers.
Madison group’s purchase of the GPUs was to expand its business by offering Wine Auction Bussiness to its customers using blockchain technology. This was seen as a fail and many traders look at this as a blunder by Diginex however it was Madison Group’s mining farms that ran all operations of the Wine business. Diginex just maintained Madison Group’s farm mining equipment during this venture.
Diginex partners with Agora to provide blockchain-based voting in Asia- August 13, 2018
Diginex, a blockchain solutions provider, today announced a partnership agreement with blockchain-based voting solution Agora to implement and execute projects in Asia.
Diginex enters into a strategic partnership with TATERU -January 11, 2019
As part of this partnership, the Tokyo based TATERU will integrate Diginex’s Data Integrity Solution into its existing real estate loan application process. These actions were taken by TATERU after one of their employees had falsified a customer’s bank balance to show a higher balance in order to obtain a loan for an investment property. Diginex’s blockchain records can help to prevent fraud, such as unauthorized tampering of documents and ensures the integrity of data throughout the loan application process.
Diginex and the Mekong Club join forces with Verifik8 and British Government to pilot blockchain project -February 13, 2019
This project funded by the British Government via its Embassy in Bangkok will use Mekong Club’s data analytics platform Verifik8 to pilot eMin. The blockchain-based designed app aims to improve the lives of migrant workers and to reduce the chances of exploitation, by engaging both the private and public sectors.
Verifik8, which provides data intelligence and analytics for agribusiness suppliers, will facilitate the pilot on the ground in Thailand. Verifik8, which was launched by Bangkok-based Fairagora, has already facilitated a number of pilots on behalf of Southeast Asian and international companies including Thai Union, Pepsico and Nestlé.
eMin was presented to the Pope at “The Common Good in the Digital Age” event organized by Vatican City State. The presentation updated eMin’s efforts to aid in the eradication of modern slavery
Diginex joins the World Economic Forum’s Centre for the Fourth Industrial Revolution Network- March 28, 2019
The World Economic Forum based in Geneva Switzerland strategically brings the most relevant leaders from all sectors of global society, and identify the best ways to address the world’s most significant challenges. For almost 50 years (company timeline), the Forum has been the catalyst for global initiatives, historic shifts, industry breakthroughs, economic ideas, and tens of thousands of projects and collaborations.
The Centre for the Fourth Industrial Revolution was launched in March 2017 to co-design the policies needed to accelerate the adoption of emerging technologies in the global public interest. Membership of the Centre is by invitation only.
Additional Reads:
Diginex and OKWAVE Announce Blockchain Industry Partnership-May 28, 2019
Diginex and Japanese tech company OKWAVE have entered into a Memorandum of Understanding to conduct joint research into applications of blockchain technology and the STO (Security Token Offering) industry. The company name OKWAVE incorporates the acronyms of two Japanese words, “Oshiete” (teach me) and “Kotaeru” (answer). OKWAVE Japan’s first and largest Q & A site use AI, Blockchain, and information security within websites to improve FAQ pages and improve overall customer service. OKWAVE plans on taking their technology globally over the next few years as OKWAVE aims to make business processes more efficient and societies more secure.
OKWAVE’s Active Partners list:
Diginex and FIS to launch digital asset trading tool- June 18, 2019
Diginex, and FIS, (NYSE: FIS ) a global leader in financial services technology, today launched Diginex Access, a trading tool designed to help investors manage their digital asset portfolios.
Diginex Access is a digital asset trading tool built on top of FIS’ Front Arena platform, following an exclusive 10-year agreement signed by Diginex and FIS.
FIS’ Front Arena platform is an integrated solution for sales, trading, risk management, operations, and distribution across multiple asset classes. Diginex Access offers real-time pricing and aggregated risk-management as well as straight-through processing to give investors complete control over the entire trading lifecycle.
The Diginex Access trading tool also allows users to aggregate order books across multiple exchanges and execute via a single platform for spot and options. It offers access to data analytics tools such as trade cost analysis, historical volatility, skews, and options pricing tools. Diginex Access also has audit and reporting functionality, and real-time risk and P&L monitoring that is specifically tailored for digital assets.
Diginex Access is available to existing users of Front Arena and as a standalone tool. It has no monthly or upfront fees and offers dedicated technology support to institutional clients.
FIS Global is a fortune 500 company headquartered in Jacksonville FL and is responsible for $9 trillion in moved funds annual, $75 billion in transactions around the world and serves 19,961 clients worldwide
8i Enterprises Acquisition Corp. Announces Execution of Share Exchange Agreement with Diginex Limited- July 10, 2019
Diginex Joins Blockchain Alliance- October 9, 2019
The Blockchain Alliance, a global coalition of companies and organizations with a common goal to make the blockchain ecosystem more secure, as well as to promote further development of the technology. Diginex becomes the first Asia member of the public-private forum to combat criminal activity involving cryptocurrencies and blockchain technology
Diginex signs agreement with Verifik8 to utilize blockchain tool eMin to help protect workers in Thailand’s aquaculture industry -October 21, 2019
Diginex, a global blockchain solutions company, today announced it has signed a long-term agreement with Verifik8, a data intelligence and analytics provider for agribusiness suppliers, to help protect workers in the aquaculture sector in Thailand from exploitation by utilizing blockchain technology. As part of the agreement, Verifik8 will integrate eMin into its existing farming monitoring tools called Blue 8/Green 8, which are already being used by 5,000 workers on the ground in Thailand.
Diginex joins Microsoft’s ScaleUp Program 2019 to deliver enterprise value to clients via Diginex Trust -December 11, 2019
Diginex announced it will take part in the Microsoft ScaleUp program. This exclusive 2-year program is designed for high-growth companies to leverage Microsoft’s expertise, scale their businesses, and further deliver enterprise value to their clients.
Diginex joins the ranks of the world’s leading technology startups who have met Microsoft’s vetting and selection criteria in order to participate in their ScaleUp program. Graduates from the program will gain access to Microsoft’s internal technology expertise, software, infrastructure, dedicated support as well as an elite alumni and peer network. The program has also presented opportunities for startups to engage in joint sales and co-marketing efforts.
For Diginex, joining Microsoft ScaleUp will provide deep technical and business synergies between the two companies, enhancing security and efficiency to the existing platform and ultimately delivering value for clients. Diginex has built a secure, institutional-grade tool for businesses and organizations on the Microsoft Azure cloud platform called “Diginex Trust”. The tool is designed as a blockchain-enabled information provenance network that safely stores immutable records thus mitigating risks.
Learn more about Diginex Trust (beta)
Learn more about Microsoft Scale-up
Diginex launches Digivault to provide institutional-grade custody for digital assets -November 12th, 2019
launch of Digivault, offering digital asset custody services to meet the rigorous requirements of institutions. According to the 2019 Cryptocurrency Anti-Money Laundering Report, the digital asset industry due to losses from thefts, scams, and misappropriation of funds totaled US$4.26 billion.
Digivault will provide a vaulted cold storage solution for a range of digital asset holdings including Bitcoin and Ethereum through its Kelvin offering. The product will offer enterprise-grade security, operate to global standards, and provide a highly secure means of processing and storing digital assets.
The Kelvin offline Cold Storage Server was produced by luxury material storage company Maica-Amit
Diginex partners with Itiviti to provide NYFIX https://www.globalinvestorgroup.com/connectivity for digital asset investors - April 20, 2020
Diginex and Swedish technology and service provider Itiviti agree to a partnership to use Itiviti’s NYFIX connectivity platform and integrate into Diginex’s Diginex Access trading platform. NYFIX’s FIX-Based order routing network connects 1,600 buy-side, sell-side, and trading venues across all asset classes, combining state-of-the-art technology and network infrastructure to handle the full trade lifecycle across any asset classes.
Itiviti provides services to financial institutions on a global level and was named Best Technology firm/ISV for proprietary traders of the Year, marking the third straight year that Itiviti is recognized at the prestigious FOW Awards
This partnership has been fueled by demand from institutional investors, who wish to include digital assets in their portfolios, while utilizing resilient and scalable connectivity based on FIX; the widely recognized industry messaging standard.
Diginex Strengthens Partnership with Itiviti and Leverages Tbricks Automation Platform for Institutional Cryptocurrency Clients- July 16th, 2020
Diginex will utilize Tbricks to launch ‘Diginex Access’, a multi-venue, front-to-back trading, portfolio, and risk management solution for digital assets including cryptocurrencies and their associated derivatives. The combined solution will be powered by Tbricks automation technology and robust infrastructure to offer an institutional-grade experience to investors who seek to manage digital assets.
Diginex Announces the Public Launch of EQUOS.io, set to become the First Digital Asset Exchange Listed in the United States-July 30, 2020
Diginex announces the public launch of EQUOS.io. This platform will deliver a next-generation digital asset exchange to a global audience, with institutional-grade infrastructure and high performance at its core, built on the foundations of equity and transparency.
The launch of the exchange is another important milestone for Diginex in advance of the planned business combination with 8i Enterprises Acquisition Corp, the NASDAQ-listed special purpose acquisition company (Nasdaq: JFK), which, upon expected completion in the third quarter of 2020, will offer investors the opportunity to participate in the growth of this emerging asset class via the public markets.
The EQUOS.io platform will feature a fully functioning digital asset exchange, offering cryptocurrency spot trading initially, with perpetual swaps, dated futures, options, and other derivatives products to follow, and will provide interoperability with Diginex’s over-the-counter trading desk, Diginex Access, and Digivault, The EQUOS.io’s spot exchange is operating under an exemption to the Singapore Payment Services Act and will provide a fair and transparent platform for all users.
See top tier accounting firm Deloitte’s 2019 presentation on Singapore Payment Services Act
Other Notable Events;
8th Global Family Investment Summit Dubai March 2-4, 2019
Global Family Office Investment Summit Dubai is a global event put on by Sir Anthony Ritossa. These events put on by Global Family Office are the “World's Largest & Most Exclusive Gathering of Family Wealth” attended by more than 600 prominent family offices and ultra-high net worth individuals, together with Sheikhs, Royals, Private Investment Companies, and Sovereign Wealth Funds from across the Middle East and around the globe.
David Gibson Moore was a panel member at the 8th Global Family Office Investment Summit which took place on 2-4 March 2019 in Dubai and was organized and hosted by the Ritossa Family Office under the high patronage of H.H. Sheikh Ahmed Bin Saeed Al Maktoum. The topic of the panel discussion was “Blockchain & Business – Delivering Real-World Benefits” tackling the real-world applications of blockchain technology in business.
Founder Miles Pelham’s interview at 8th Global Family Office Investment Summit
Executives
Richard Byworth CEO
Previously he was Managing Director at Nomura where he ran Multistrategy Sales for Asia Pacific product globally in which he managed over $6 billion in funds. Over a 14 year period, he led Nomura’s Asia distribution initiative, building and maintaining the number one franchises in convertible bonds and flow derivatives. Prior to this, he worked at Nomura in London as a proprietary trader running dispersion portfolios in equity derivatives and convertible bond risk arbitrage. He also worked at BNP Paribas and has advised a number of Fintech start-ups. He is also board adviser to Privatemarket.io, a secondary private equity marketplace, and a board member of Bletchley Park Asset Management. He holds a BA in French with Management from Royal Holloway, University of London.
Dr. Christan Thierfelder - Chief Research Officer
Thierfelder is the Chief Research Officer where he oversees all technical and quantitative teams. Previously he was a Director at Mizuho, responsible for quantitative research and trading technology for the Global Convertible Bonds desk. Prior to this, he worked at d-fine as a quantitative consultant to investment banks, hedge funds, and insurance companies. He also worked as a researcher and research group leader at Massey University Auckland, the University of New South Wales, and the University of Paderborn. He holds an MSc in Physics from Friedrich-Schiller University Jena, an MSc in Mathematical Finance from Oxford University, and a Ph.D. in Theoretical Physics from Massey University Auckland.
David Gibson Moore- Chairman of EMEA
David Gibson-Moore has more than three decades of experience that spans investment banking, institutional asset management, and private banking.
During his career, Mr. Gibson-Moore held a number of senior banking roles including:
Chairman at JP Morgan Chase
Regional Executive for Europe Middle East and Africa for Chase Manhattan Bank,
Managing Director
Chief Executive Officer Middle East for the Robeco Group
Chief Representative for the LGT Group based in Bahrain, with responsibility for developing the Bank’s interests in the Gulf and the wider MENA region.
Most recently, Mr. Gibson-Moore was president of Gulf Analytica, advising companies on how to operate effectively in the Middle East regional markets through adopting robust and sustainable business models.
Watch David Gibson Moore speak on Fintech
Miles Pelham - Chairman
Miles is a 21-year finance veteran, during which time he has managed multi-billion portfolios for leading global banks. He retired from banking in 2017 to focus on Diginex. He is also presently the youngest serving Chairman of a UK-listed company. Miles built Diginex with the vision of creating an institutional-grade blockchain solutions business that will shape the future of financial services and technology. He was previously Global Head of Convertible Bonds at Mizuho, where he oversaw the largest franchise by volume in Asia across three global offices. Prior to this, he was an Executive Director at Barclays where he built a proprietary trading desk across all asset classes and Executive Director at Nomura where he led the Convertible Bonds trading team in Japan. He has managed substantial portfolios for leading global banks, making in excess of US$500m in trading profits throughout his career. Miles graduated from the University of Exeter with a degree in Managerial Statistics and Investment Management.
Smartrick’s Summary & Assessment
In Summary, Diginex is a Hong Kong-based Blockchain Technolgy company with offices all over the globe. CEO Richard Byworth has been in discussion with over 30 nations who have expressed interest in a form of digital currency. Diginex offers a wide variety of services to include:
Mining with the 20,000 GPUs in their data center in Western Europe (in which they target Security Tokens)
Enterprise Blockchain solutions via Diginex Trust (partnership with Microsoft)
Digital Asset storage (DigiVault)
Large institutional investors (to include the UK and GCC Royal family)
A survey by Fidelity covered 905 institutional investors in 25 countries responsible for $29 trillion in assets found that 80% of investors think that by 2025 blockchain and similar technologies will fundamentally change the investment industry.
Diginex estimates forward growth of its enterprise to $276 Million in 2020. (Not bad for a $57 million investment) It seems to me Diginex has leveraged its self as an early frontrunner to command the Digital Asset landscape. With the World Economic Forum forecasting the Digital Asset market by 2027 along with Coinbase (not traded) to reach $13 trillion value, there is a lot of upside to this company. The experience and relationships of the Diginex team will only aid in blockchain adoption by large institutional investors and family monetary funds (especially in the UK and Middle East Royal families)