FIVE COINS TO $5 MILLION:

THE FINAL FIVE

By Teeka Tiwari
 Five Coins to $5 Million:
The Final Five
By Teeka Tiwari

Friends, welcome to Palm Beach Confidential. though I would have sold more newsletter sub-
scriptions.
In this special report, I’ll be sharing with you
valuable commentary on the state of the crypto Selling the most subscriptions has never been my
markets and the upcoming Phenomenon… and, goal.
of course, my “Final Five Coins to $5 Million” buy
list. Sure, I’m a capitalist. I wouldn’t be much of a
businessman if I ran my business at a loss. But
Nearly every time I’ve opened my Palm Beach making more money for my publisher just for the
Confidential service to new members, the entire sake of making more money is not my focus.
crypto market was getting devastated…
My primary focus in this life is to help as many
• It happened in April 2016, when the mar- people as I can vastly improve their financial
ket was down 10%. Yet a year later, my lives. It’s my calling… And according to testimo-
new subscribers saw cumulative gains of nials from thousands of satisfied subscribers, I’m
over 1,000%. doing a pretty good job at it so far.

• The same was true on April 20, 2017. And That’s why the very best thing I can do for you as
again, 32 days later, my new subscribers a new member of Palm Beach Confidential is get
saw cumulative gains of over 1,000%. you into cryptos when the prices and sentiment
are at gut-wrenching lows.
• Even during the 2018 Crypto Winter, we
opened Palm Beach Confidential in March That’s the only way I know I can make – and
when the market had dropped 27%. But by meet – my 1,000% return guarantee. As far as
April 20 that year, my new subscribers saw I know, it’s the only guarantee of its type in any
cumulative gains of over 1,000%. research service in the world.

• The same was true in 2019. Bitcoin had And I’ve hit it again... and again... and again.
dropped 24% when we reopened member-
ship on September 19. And yet again, less But this time around, things are even better.
than five months later, my new subscribers Altcoin (all cryptos besides bitcoin) valuations are
saw cumulative gains of over 1,000%. down to levels we haven’t seen since July 2017.
Back then, it only took six months before valua-
Again and again, I’ve refused to open my doors tions exploded 10 times higher.
to new members during the boom times… Even
So you’re joining us at exactly the right time...

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 The Joining of Two Forces
Then, just like now, two forces
came together that shot a handful
of crypto coins up into the strato-
sphere.

Along the way, they made thou-

sands of crypto investors multi-
millionaires.

I call this event “The Phenome-

non.” It happens once every four
years. And I can tell you it’s 100%
guaranteed to take place, regard-
less of what’s happening with
crypto prices.

The last two times this Phenom- A halving event is when the bitcoin reward gets
enon happened, we saw a handful of coins shoot cut in half. So each halving reduces supply com-
up as much as 414,414% (Spectrecoin), 539,733% ing to the market every four years. The first halv-
(Reddcoin), and even over 1,000,000% (Verge). ing occurred in 2012, and the second in 2016. The
third will occur in May 2020.
$500 into each of these coins would have been
worth as much as $2 million, $2.7 million, and $5 When that halving event occurs, the bitcoin re-
million, respectively. ward will drop from 12.5 to 6.25 bitcoins. Over a
year, that will drop the supply of bitcoin coming to
Now, past performance is no guarantee of future the market from about 675,000 to about 337,500.
success. But in this special report, I’ll lay out five
tiny coins I believe could follow a similar explo- Bitcoin is the gateway to crypto; think of it like
sive pattern. the reserve currency of the crypto world. So if de-
mand stays the same but supply gets cut in half,
Before I get to the five coins I identified on my what happens to the price?
six-month world tour, let me explain what these
two forces are… and how their combination can It goes up.
hand you life-changing gains.
And when demand skyrockets, it goes up a lot.
Force No. 1: The Halving From the last halving to the end of 2017, bitcoin
rose 2,162%. But if you look at the altcoins... they
There can never be more than 21 million bitcoins went up 5.5 times more. (See chart above.)
in existence. Their issuance is strictly regulated
by computer code. But cutting the supply of bitcoin is not enough
to turn a few $500 investments into a multimil-
Every 10 minutes, bitcoin “miners” compete to lion-dollar fortune.
solve a complex mathematical problem using
computing power. Right now, whoever solves the You need the second force. You need massive,
problem first is awarded 12.5 bitcoins. sustained record-high demand.

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 Force No. 2: Massive Increase in Demand But the Phenomenon isn’t only happening in
Switzerland. We’re seeing demand pick up
The second force behind The Phenomenon is a around the world.
massive increase in demand.
Last fall, Germany – Europe’s largest economic
That’s why, as you saw in my first-of-its-kind power – rewrote its laws to allow German banks
presentation, I flew a private jet to Switzerland... to build crypto products, offer crypto trading, and
It’s the epicenter of the crypto boom. And I want- hold crypto on behalf of their clients.
ed a firsthand look at what was happening in this
space. Just two weeks after Germany’s landmark law
passed, the $1 trillion Dutch banking giant ING
Switzerland is home to one-third of the world’s announced it’ll allow its customers to store their
offshore wealth. The world’s wealthiest individu- crypto assets with the bank.
als and families have stored $2.3 trillion there.
Back in April 2018, India’s central bank ordered
The Swiss bankers who control all this wealth are banks and financial intermediaries to stop dealing
building the infrastructure that will transform with crypto-related businesses. And the govern-
crypto into a trillion-dollar market… ment was drafting a bill to sentence its citizens to
10 years in prison if they went against the ban.
Already, Swiss investors can buy bitcoin using the
same interface they use to buy shares of Apple. Then, in a complete reversal this month, India’s
Supreme Court declared the ban unconstitution-
And recently, the Swiss government granted a
al. This ruling will bring 5 million crypto inves-
former high-level UBS bank executive approval
tors back into the market.
to open the world’s first licensed crypto bank. It’s
designed to bring digital assets to institutions. And in South Korea, a recently passed amendment
gives businesses clarity when it comes to crypto-
But demand for crypto doesn’t stop there.
currencies. It removes the gray area businesses
Zug, Switzerland, used to be known as a hotspot had been operating in. It’s a boon for the 70 ex-
for Fortune 500 companies. Now, it’s being called changes which operate in Korea, which is home to
a different name: Crypto Valley. the third-highest crypto volume in the world.

It allows residents to pay for government services And while we’re seeing big waves across the
in bitcoin. Walk past the city’s town hall, and world, America is getting on board as well.
you’ll see a “bitcoin accepted here” sign. Keep
• In September 2019, Bakkt – a subsidiary
walking, and you’ll make it to a high-end restau-
of the company that owns the New York
rant. It accepts crypto, too.
Stock Exchange – launched its fully com-
And not far away is the Swiss stock exchange. It’s pliant bitcoin exchange for institutions.
launching a crypto asset-trading platform. And Weekly open-interest highs on Bakkt are
it already has two bitcoin exchange-traded funds up 76% from the beginning of the year...
(ETFs) live. and 2,600% from September last year.

On top of all this, the “Amazon” of Switzerland • And in November, Fidelity Investments
has begun accepting cryptocurrency payments. – one of the largest money management/
brokerage firms in the U.S. – received

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 approval from New York to begin offering I want to honor that decision and do everything
crypto trading and custody to its clients in my power to transform your financial life.
in the state. Fidelity has 30 million retail
clients and over 20,000 business clients. So welcome to the team. You’ve made an ex-
cellent decision. I believe you can dramatically
• TradeStation has made crypto trading part improve your financial life forever with the five
of its trading platform. It’s now as easy to investments in this report.
trade as shares of Coca-Cola. Investopedia
ranks TradeStation as a top-five online Please remember: Be rational, and don’t invest
broker in America. any more than $200–400 if you’re a small inves-
tor and $500–1,000 if you’re a bigger investor.
• On March 9, a bill called the “Cryptocur- What I love about cryptocurrencies is that they’re
rency Act of 2020” hit the floor of Con- the perfect asymmetric bet. You don’t have to
gress. While it may not make it to the pres- take life-changing risks to make life-changing
ident’s desk, it proves that conversations at gains.
that high level are progressing to the point
where bills are being drafted. And one more crucial note all readers should keep
in mind before we get started, whether you’re just
And this is all just the tip of the iceberg… joining us or have been around for a while…

We are on the verge of 500 million stock inves- IMPORTANT NOTE: Immediately after our
tors being able to buy crypto with just one click buy recommendations, we often see an initial
of their mouse. That huge influx of demand will price spike. We understand this can be frustrat-
ignite the prices of a handful of coins to levels we ing. But don’t worry. This is par for the course in
have never seen before. the cryptocurrency space. Most of the time, the
recommendation falls back below our buy-up-to
And that’s why I have chosen now to release the price. As long as it’s below the buy-up-to price,
names of my “Final Five.” use a limit order within 5–8% of where the cur-
rent price is when you’re purchasing it. And just
Bringing It All Together be patient and let the price come to you.
Long story short: The lower the price level you
Read on to find all the details on my “Final Five.”
start from (like now), the more profit you’ll make
as crypto prices recover. And that’s why I’ve Millionaire Pick No. 1: The Breakthrough
always timed the reopening of Palm Beach Confi- Gaming Platform – Enjin (ENJ)
dential with sharp pullbacks in prices.
Fortnite.
So I want to congratulate you on choosing to come
join me in the face of today’s market pessimism. If you have kids you’ve probably heard of it. Or
maybe you’ve just heard about its resounding
You intuitively know you don’t get rich following success.
the crowd. You have to break away and be willing
to do what other people won’t… And that’s exactly Since launching in 2017 it has attracted 250
what you did when you chose to join Palm Beach million players. That’s roughly the population of
Confidential. Indonesia. And it has generated $1.8 billion in
sales.

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 Its success is a phenomenon that defies main- But those projections could be low. That’s be-
stream understanding. That’s because its core cause The Phenomenon is guaranteed to happen
product is free. Anyone can use virtually every in 2020. And it could send this token soaring over
feature of this product and not have to pay a 63,000%.
dime.
Sorry, You Can’t Buy Fortnite
Most of its revenue comes from players who buy
limited-edition virtual “costumes” for their online The biggest beneficiary of Fortnite’s success is its
characters. game creator, Epic Games. A private company,
TechCrunch pegs its value at $15 billion.
These costumes – or “skins” – confer no special
advantage within the game. They are purely cos- While Fortnite has been a huge driver of Epic’s
metic. Yet, the average Fortnite player spends as success, it’s just one piece of the company. Epic
much as $85 per year on these digital items. also owns the Unreal game engine. It’s a platform
developers use to build their own games. More
Adroit Market Research pegs the growth of digital developers use it than any other.
in-game items like skins to grow 22.3% per year.
It’s projected to hit $190 billion by 2025. Blockbuster games like PlayerUnknown’s Bat-
tlegrounds, Gears of War, and Fortnite were all
But here’s the problem… built using Epic’s game engine. Developers are
building nearly 23% of new games using it. And
Players are spending billions on virtual items they Epic gets a cut of every game launched on the
don’t own… can’t move from one game to anoth- platform.
er… and can rarely trade or convert into actual
money. You see, Epic is more than a game creator. It’s
a gaming platform. Think of a gaming platform
Some have attempted to solve these problems… as a suite of development tools for game design-
But their solutions proved complex and expensive. ers. It’s similar to the way software developers
can build smartphone apps on the Apple iOS or
However, we’ve found a new breakthrough in
Android platforms. And just like Epic’s platform,
blockchain technology that will – for the first
both Apple and Android get a cut from app sales.
time – give players a cost-effective way to actually
own, trade, store, and move their in-game digital The closest thing we’ve seen like this in the block-
items the same way they can own, trade, store, chain space is Ethereum.
and move crypto.
However, Ethereum isn’t focused on game
Most importantly, this new standard is easy for development and won’t solve the in-game item
programmers to use and up to 90% cheaper to dilemma.
implement than the current standards.
Here’s the current problem:
The project we’ve found has the keys to unlock a
vast new economy. And based on our projections, Designing smart contracts for gaming can be a
it could grow to $5 billion in value over the next complicated and expensive process. For example,
few years. when traffic on the Ethereum network is high,
simple processing fees can skyrocket from a nor-
That’s growth of over 12,500%. mal cost of 8.4 cents to as much as $5.52.

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 But we’ve found a project we believe will solve the ing digital items was cumbersome and expensive.
twin problems of cost and complexity that have Instead of waiting for a better solution to come
stymied blockchain game developers. along, it decided to write a new protocol from
scratch.
And that solution could make this project the
“Ethereum” of blockchain game development. It goes by the very unsexy name of ERC-1155. But
this nondescript piece of tech jargon will change
A Breakthrough Gaming Platform the face of gaming as we know it… And it has the
potential to usher in a new segment to the global
The name of the project is Enjin (ENJ). It’s a
economy.
blockchain ecosystem with products that allow
anyone to easily create, manage, distribute, trade, That’s because it’s dropped the cost of using the
and store blockchain assets. Ethereum blockchain by as much as 90%. This
dramatic decrease in costs will lead to an explo-
Enjin started as a gaming platform that provid-
sion of game development and – more important-
ed tools for people to build communities around
ly – game usage.
their favorite games.
This surge of usage will create billions of new
Since launching in 2009, it’s grown its user base
tradable digital items and spawn its own econo-
to over 20 million users. In 2017, it expanded its
my that could ultimately be worth hundreds of
platform into blockchain development.
billions of dollars. We believe the Enjin coin will
But Enjin saw right away the standards for creat- underpin much of that new economy.

How the ERC-1155 Token Works

If you’d like to read more on the ERC-1155 token standard and how Enjin works, read on. If not,
you can skip this section…

Enjin’s innovation is the ERC-1155 multi-token standard.

Its chief technology officer, Witek Radomski, created the standard and originally published it in
June 2018. After peer review, it was adopted as an official Ethereum token standard in June 2019.

The core concept behind ERC-1155 is that a single smart contract can govern an infinite number
of tokens. Previously, with the ERC-20 and ERC-721 token standards, a new smart contract was
deployed for each new “class” of token.

With ERC-1155, users can send multiple tokens in a single transaction. That offers significant
savings on transaction costs and eliminates the wait for each block in single transfers.

In short, Enjin makes it easy and cheap to create and manage virtual goods.

The Enjin Coin (ENJ) is used by developers to create, or mint, ERC-1155 tokens.

Enjin offers a robust suite of blockchain tools that can be used to tokenize in-game currency,
characters, weapons, skins, accessories, real estate, and gaming servers.

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 Developers can currently use the Enjin platform to:

• Batch mint over 100 non-fungible tokens and millions of fungible tokens with a single
transaction

• Earn micropayments each time tokens are sent, traded, or transacted between users

• Save time and money integrating tokens into their games

• Collaborate with other developers to create items that can be used in multiple games

• Provide users with a secure, seamless way to store and manage their valuable crypto assets
via the Enjin Wallet

• Provide users with an intuitive way to browse, search, and explore all blockchain gaming
items through EnjinX.io, Enjin’s blockchain explorer

• Provide users guaranteed token value via ENJ backing

And they can do all the above without having to write a single smart contract.

All blockchain items created with Enjin’s platform contain ENJ, which is removed from circu-
lation upon minting. Users can also choose to melt down their blockchain items to retrieve the
Enjin Coin, thereby placing the ENJ back into the market.

Having items backed by ENJ guarantees their value. It also proves their provenance, acting as a
certificate of authenticity. And it prevents someone from creating an infinite amount of items.

Assets backed with a large amount of Enjin Coin have a reputation for being significant items
with high intrinsic value.

Further, backing items with ENJ also takes the coin out of circulation. As the platform is used by
more games, more ENJ is locked up, and overall supply is reduced. And that makes the circulat-
ing supply more valuable.

To date, nearly 50 million assets have been created, backed by over 11.3 million ENJ.

The Enjin Gaming Platform players can use their Enjin Multiverse items in
multiple gaming realms.
Like Epic Games, Enjin has the opportunity
to become the premier gaming platform in the In addition to the ERC-1155 standard, Enjin cre-
blockchain space. ated a suite of products to make the Enjin Multi-
verse a reality:
Enjin calls its platform the Enjin Multiverse. It
contains all the tools needed for blockchain-based • Enjin Platform: An all-in-one block-
gaming. And in the context of gaming, it means chain game development platform to fund,
grow, monetize, and design digital games

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 • Enjin Wallet: A blockchain wallet where In the last decade, Samsung shipped over 2.4 bil-
you can claim and trade virtual assets and lion phones. And we suspect it’s only a matter of
link your wallet to blockchain games time before all Samsung phones come equipped
with a blockchain wallet.
• EnjinX: Enjin’s blockchain explorer to
find and explore assets Enjin has secured another partnership with Unity
Technologies that’ll put its tools in front of 4.5
• Enjin Mintshop: Enjin’s service for cre- million game developers.
ating ERC-1155 tokens
Unity is the world’s most popular game engine,
• Enjin Network: Enjin’s community plat- powering over 50% of mobile games and reach-
form for gaming clans and guilds already ing over 3 billion devices worldwide. And Unity’s
has over 20 million members. It features a gaming engine supports more than 25 gaming
website builder, forums, group chats, voice platforms, such as Xbox One and PlayStation.
servers, recruitment apps, and virtual item
stores. With this partnership, the Enjin software devel-
opment kit (SDK) is now part of the Unity Asset
• Enjin Beam: A QR-based blockchain Store. So Unity game developers can create and
asset distribution service. Enables devel- manage virtual assets in their existing and up-
opers to easily distribute created tokens coming games.
via QR codes.
Enjin’s third major partnership is with Microsoft,
Today, developers can use Enjin’s ERC-1155 stan- the top cloud provider in the world by revenue.
dard to create virtual goods easily and cost effi- Microsoft is collaborating with Enjin to promote
ciently. Further, with its ecosystem, Enjin created Microsoft’s Azure cloud community.
a new paradigm for the gaming space where users
can truly own their in-game assets. Microsoft dubs the project Azure Heroes. It
rewards Azure community members with digi-
It’s All About Partnerships tal collectibles for positive actions like coaching,
providing sample code, or general content about
As we’ve always said: Having the greatest tech-
Azure. And it creates these digital collectibles
nology in the world is worthless if no one is using
(called badgers) using Enjin.
it. The fastest way to attract new users is to build
partnerships with other platforms that have mas- Enjin has a number of other key partnerships as
sive user bases. well. For example, it’s working with the Korea
Mobile Game Association to promote its plat-
And that’s exactly what Enjin has done by secur-
form. It’s doing the same thing with HashPort
ing three major partnerships.
Accelerator, a blockchain consultancy out of
The first was in March 2019. Enjin secured a Japan. And Binance recently tapped Enjin to help
partnership with Samsung that will put it on 45 it launch Binance collectibles.
million of Samsung’s flagship S10 smartphones.
And then there’s the listing of ENJ on the Swiss
That means the Samsung Blockchain Keystore Crypto Exchange (SCX). It’s one of the first util-
(its built-in crypto wallet) will support the ENJ ity tokens to be listed on the exchange. And it’s
token. It will also support ERC-1155 tokens. significant because SCX is partnered with a Swiss
bank that has more than 140,000 clients.

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 On top of all these partnerships, the project al- Should that happen, Enjin could command a valu-
ready has its own installed user base of 20 million ation of $5 billion. That would give us a token price
users on its existing community building platform. of $6.33 – or a 12,561% gain from today’s prices.

What’s It Worth? However, as longtime readers know, during an

epic bull market like we saw in 2017, prices can
In 2010, the average person spent about 2.5 get completely untethered from reality. Under this
hours online per day. At the end of 2019, it was type of “Blue Sky” scenario, Enjin could easily see
up to 3.5 hours – a 40% increase. By 2021, it’s its market cap balloon to more than $25 billion.
estimated to be more than four hours.
Under that scenario, the token would be worth
The point is: Our lives are becoming increasingly $31.65 – or a 63,200% gain from today’s prices.
digital. And as we spend more time online, our
virtual experience becomes more valuable. As always, place no more than $200–400 for
smaller accounts and $500–1,000 for larger ac-
That’s why people will gravitate to virtual items. counts into this trade. And remember: Use limit
And it won’t be long before we buy digital items orders and wait for the price to come within buy
as naturally as more tangible items… like a car or range.
a new set of clothes.
Action to Take: Buy Enjin Coin (ENJ)
Enjin is vying for a piece of the $50 billion video Buy-up-to Price: Check the portfolio page here.
game virtual items market. It’s a market that’s Stop Loss: None
grown rapidly over the last five years and is ex- Buy It On: KuCoin, Bittrex, Binance (Binance.
pected to grow over 20% annually into 2025. By US for readers in the U.S.)
that time, it’s expected to be a nearly $200 billion Store It On: MyEtherWallet
market.
Millionaire Pick No. 2: Monetizing Trust –
With its complete ecosystem, array of partner- Numeraire (NMR)
ships, and technical expertise, we believe Enjin
can capture at least 1% market share over 2020. Ride-sharing app Uber is worth $70 billion, and
That would give it a valuation of $500 million. it doesn’t own a taxi.

Based on the current tokens in circulation, that What it’s really in is the platform business.
would give us a gain of 1,166% from today’s prices.
In other words, economic value comes from
Overall, we think just considering the video making an easy-to-use platform that seamlessly
games virtual item markets is too small. That’s matches service providers with service users.
because digital collectibles are part of a larger
trend: physical assets moving to a digital repre- Uber, as well as eBay, Airbnb, PayPal, and Book-
sentation. ing.com are examples of platform companies.

Examples include digital art, trading cards, com- In the crypto space, the most successful platform
ic books… even digital cars. The possibilities are play is Ethereum.
endless. Of course, we won’t see every collectible
I recommended Ethereum in 2016 at $9 because
go digital. But as more do, it could dramatically
I realized it would be the platform most develop-
expand the market for Enjin.
ers would use to create blockchain applications.

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 That call ended up being correct to the tune of As far as the global research market is concerned,
15,821%. it might as well be the 1970s. There is no easy
way to verify or rank by trustworthiness market
Ethereum rocketed from an entry price of $9 to research, stock research, or dynamic algorithmic
as high as $1,432. If you put $500 in my original trading data feeds.
recommendation, it would have been worth as
much as $79,605. That makes the global research market ripe for
massive disruption.
That’s the wealth-building power of getting into
an emerging technology platform play early. We’ve found a tiny project that’s using the block-
chain to bring both trust and consequences to the
We’ve found the next emerging technology plat- global research market for the first time.
form. It’s a project that’s built a platform for
monetizing trust. And based on our projection it The Next Big Platform Play
could grow to over $1 billion in market value, a
gain of 9,960% from today’s prices. The name of the project that has solved these
problems is Numeraire (NMR).
But But thanks to The Phenomenon, this token
could explode over 200,000%. It started in 2015 as a way for analysts to create
and sell data feeds that provided trades to the
$319 Billion in Blind Trust Numerai hedge fund.

Market research, stock research, financial data The founders and backers of Numerai come from
feeds, and even investment newsletters all suffer a highly credible background in traditional fi-
from a horrible lack of verifiable trust and conse- nance. For instance:
quences.
• Fred Wilson is a co-founder of venture
These providers are bilking some of the smartest capital firm Union Square Ventures. It
people in the world out of billions of dollars. invested in the likes of Twitter, Zynga, and
Tumblr.
The largest purveyors of these products wear suits,
were educated in Ivy League schools, and have co- • Howard Morgan is one of the original
alesced into an oligopoly of companies that collec- team members of quantitative hedge fund
tively make approximately $319.3 billion per year. Renaissance Technologies. Renaissance
is regarded as one of the most successful
If this were a physical product such as a car, a hedge funds of all time with $68 billion
drug, or a consumer electronic product, the Food under management.
and Drug Administration (FDA) or the Federal
Trade Commission (FTC) would have long ago • Fred Ehrsam is co-founder of Coinbase, the
forced them to clean up their acts. But these peo- largest American-based crypto exchange.
ple are beholden to no one.
They soon realized verified and trusted trading
They have zero oversight and are free to make data feeds could have far larger uses beyond their
claims without audit requirements of any kind. own needs.
And yet, with all these drawbacks, corporate
customers line up and pay billions of dollars each And so, on July 9, 2019, they completely changed
year for these products. the project.

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 They “burned” (removed from circulation) 47.6% 2. How do you keep a prediction secret (so the
of the NMR tokens. This reduced the outstand- research seller isn’t giving it away for free)
ing token supply from 21 million to 11 million. while also holding the seller accountable for
And they moved to an open, distributed platform the success of the prediction?
called Erasure.
3. How does the seller monetize the prediction
The Erasure platform matches buyers and sellers on the platform?
of any type of data.
4. How does the platform punish bad actors
That data ranges from feeds that provide trade from making a million predictions and cher-
alerts on when to buy publicly traded stocks… to ry-picking the best ones?
futures and cryptos… to software patches compa-
nies can use to fix vulnerabilities in their code. The solution to all four problems can be found
by using blockchain technology. That is because
More importantly, Numerai has cracked the four blockchain technology brings a level of trust that
problems that have prevented trusted data plat- has never existed before on any platform.
forms from being built in the past.
Unlike traditional databases, blockchains allow
Bringing trust and real consequences to the glob- you to create tamperproof, verifiable records in a
al research market poses four unique challenges: way that doesn’t require relying on a trusted third
party.
1. How do you prove what someone predicted?

How It Works
If you want to take a deep dive into how Numerai works, read on. If not, you can skip this section…

The best way to show you how it works is with an example.

One use case is software “zero-day” vulnerability. These vulnerabilities are bugs or exploits in
code the developer doesn’t know about. Microsoft, Apple, Cisco, and countless software compa-
nies suffer from these unknown bugs.

Software companies often put out a “bug bounty” to incentivize users to find these issues, so they
can fix them. But they’re notorious for not paying the bounties.

The Erasure Protocol fixes that.

Let’s say a software researcher finds a bug in Apple’s iOS. That researcher can encrypt the data,
upload it to ErasureBay, and then stake NMR on the validity of the claim.

Staking means the bug finder puts up the NMR they paid for as collateral that their word is good.
They are essentially putting their money where their mouth is and saying, “This bug is real.”

The NMR stake prevents people from making thousands of claims, hoping to get lucky and get
paid on one. It also means the researcher has some skin in the game.

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 That’s important because predictions with a stake dramatically outperform those without. It’s
also important because, as you’ll see, those NMR are at risk if the prediction goes wrong.

In our example, let’s say the researcher uploads their data with a $5,000 NMR stake on the valid-
ity of their claim.

Once the researcher uploads the data, Numerai has solved two of the challenges. First, the data
submitted is encrypted. That keeps the prediction secret. And second, once the data is on the Era-
sure Protocol, someone can buy it, giving the researcher an opportunity for monetization.

Now, Apple can find the information and offer to buy it. The researcher and Apple would then
agree on the price, stake amounts, the “griefing” ratio (or burn ratio), and “griefing” period.

Griefing is the final recourse for buyers on Erasure. It lets them destroy the seller’s stake by de-
stroying some of their own. This is done to keep the seller honest. If the seller is dishonest, they
will lose all of their staked NMR.

This is done through the griefing ratio. The ratio represents the cost to burn 1 NMR of the coun-
terparty.

Sellers can adjust their griefing factors to signal the quality of their data. Rational buyers will
punish sellers with poor data using the griefing factor.

Overall, it aligns the incentives of buyers and sellers, so the market can form without a trusted
third party.

Back to our example…

Apple and the researcher agree to $100,000 for the data with 100:1 griefing terms and a 30-day
window. When the contract is signed, money is moved into escrow and released when the file is
sent. Apple can then download and examine the research for 30 days.

If satisfied, the payment and NMR stake are sent to the researcher after 30 days. This solves an-
other challenge, proving the seller’s prediction, by ensuring payment is received.

But let’s say Apple is not satisfied. It can use the griefing window and terms to punish the re-
searcher. With a griefing ratio of 100:1, it can spend $1,000 to burn the payment to zero and $50
to burn the researcher’s stake to zero. And that solves the fourth challenge, punishing bad actors.

If the buyer is dishonest, everyone will see the data the seller was offering was real and the buyer
wasn’t acting in good faith. Under this scenario, the buyer’s credibility is forever marred by the
tamperproof nature of the blockchain.

Everyone on the platform will know not to do business with the buyer. When you are a software
company that can lose billions in market value due to hacks or software bugs, you can’t afford to
have a fully public reputation for not paying bug bounties fairly.

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 As you can see, there’s little incentive to post bad information or to be a bad buyer. And the whole
transaction can be done without a third party.

For those companies looking to build a track record without giving valuable research away for
free, they can commit to a prediction now and get it time-stamped. But they only have to reveal
the prediction later when it’s no longer valuable.

This gives them a tamperproof, time-stamped track record they can point to when selling access
to their research on the platform.

On Erasure, buyers can assess which prediction feeds have the highest quality and choose to buy
the feed, which gives them a special key to see the most recent predictions before anyone else –
and therefore trade on that information before anyone else.

Expanding the Platform Erasure Protocol. Their focus is building Web

3.0 primitives into the Protocol so that it can be
The applications Numerai has built so far repre- plugged into any website.
sent only a tiny part of what’s possible with the
Protocol. And to grow its ecosystem, Numerai is We think this trend of research transparency is
turning to third-party developers and the open- just beginning. Numerai could dominate it the
source community to create new use cases. same way traditional tech companies like eBay,
Uber, and Airbnb came to dominate their respec-
Remember, with the Erasure platform, any ap- tive niches.
plication can plug into the Erasure Protocol. That
means anyone with a plan for using Erasure can What’s It Worth?
implement it.
Let me be clear: Creating a valuation framework
But it helps to have incentives. That’s why Nume- for something that has never existed before is ex-
rai recently partnered with CoinList to hold an tremely difficult. I faced the same difficulty when
Erasure hackathon. I wrote the first-ever hedge fund-level research
report on Ethereum in early 2016.
CoinList spun out of AngelList and Protocol Labs.
It’s a digital asset advisory firm that focuses on With Ethereum, I was far too conservative with
digital token sales, asset trading, asset develop- my $350 price target. As previously mentioned,
ment, and jobs. Ethereum went on to reach a high of $1,432.

The Erasure hackathon will build developer tools So to give you an idea of what Numeraire could
so anyone, even those without a coding back- be worth, I had to look at multiple metrics.
ground, can implement Erasure across the web.
If we look at NMR purely from its staking mod-
Numerai also started the Numerai Grants Pro- el of having to remove NMR from the market to
gram in 2019. For this, it set aside $1 million stake data feeds, we can draw certain preliminary
worth of NMR for teams building on Erasure. conclusions based on a certain level of market
penetration.
And the Numerai team continues to innovate the

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 Recall that the firms serving these markets gen- As always, place no more than $200–400 for
erate over $319 billion every year. Out of that, smaller accounts and $500–1,000 for larger ac-
research firm Cognetik estimates the data analyt- counts into this trade. And remember: Use limit
ics market is $77 billion. orders and wait for the price to come within buy
range.
Now, if 1% of the global market research spent
ended up migrating to NMR’s platform, we’d Action to Take: Buy Numeraire (NMR)
see $770 million per year in business transacted Buy-up-to Price: Check the portfolio page here.
across the platform. Stop Loss: None
Buy It On: Bittrex
If we assume 20% of that value finds itself staked Store It On: MyEtherWallet
against the accuracy of those data feeds, that sug-
gests a need for $154 million worth of NMR. Millionaire Pick No. 3: Cryptocurrency in
Every Wallet – Crypto.com (MCO)
So just based on pure usage, the project would
have to grow in value to at least $154 million. “I just lost all the #Bitcoin I have ever owned.”
That’s 1,140% higher from here.
That tweet came from economist, financial com-
One thing you should know is that – based on mentator, and investment management firm
pure usage – Numeraire recently saw more of its founder Peter Schiff in January.
coin staked than Augur, the market cap leader in
this space. It caused quite a stir in the crypto Twitter circles.

At its peak, Augur had a valuation of $1.25 bil- Schiff is a libertarian who supports sound fiscal and
lion. At the time of this writing, Augur’s valuation monetary policies. For example, he advocates that
is $171 million. everyone own some gold. Despite his anti-authori-
tarian views, he’s never liked cryptocurrencies.
On comparative valuation alone, you can make
the case for Numerai overtaking Augur’s value. Nevertheless, when Schiff met ShapeShift CEO
That would put NMR’s price at $75.70 today – Erik Voorhees in 2018, he accepted Voorhees’
1,276% higher from here. offer to set up a bitcoin wallet. And Voorhees sent
Schiff $50 worth of bitcoin.
But we think Numerai won’t only overtake Au-
gur’s current market cap, but its all-time high Fast-forward to 2020… Schiff couldn’t get back
valuation of $1.25 billion, too. into his wallet. And that led to his now infamous
tweet.
Under that scenario, NMR would be worth
$553.34 per token (using today’s token count), a It turns out Schiff simply made a mistake many
10,960% gain. But if we see another bull market novice crypto users make. He confused his PIN
like we did back in 2017, our potential profits for the password.
could be exponentially greater.
This story highlights one of the key pain points in
Under an “Animal Spirits” Blue Sky comparative cryptocurrency: usability.
valuation scenario, Numerai could eclipse Au-
For cryptocurrencies to be successful, they need
gur’s previous peak value by a factor of twenty.
to be just as easily usable as – or easier to use
Under that scenario, we’d see NMR rise over
than – traditional financial applications today.
201,000%.

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 We’ve found the project whose mission is to make you to dividends and voting rights. But it doesn’t
it easy for the world to transition to cryptocurrency. improve your bank services.

A million people already use its suite of products. But this project knows the more benefits it gives
And it has the catalysts to bring on millions more. its customers, the more loyal they’ll be.

Based on our projections, it could grow to $3 So when you own this project’s token, you’re
billion in value over the next few years. And that entitled to even better services. And the more you
would give us a return of over 10,000%. own, the bigger the benefits you receive.

That may be just the beginning. That’s because As we’ll explain, this virtuous circle will help
the upcoming Phenomenon – the bitcoin halving bring millions of users to the platform.
– could send this token soaring over 53,000%.
Bringing Cryptocurrency to Everyone’s
Flipping Traditional Finance on Its Head Wallet
To bring on millions of new users, this company Originally headquartered in Switzerland, the
is solving the key usability problems facing cryp- name of the project is Crypto.com (MCO).
tocurrency users today.
[Please note: We’re recommending the MCO to-
Those problems include: ken today, not the Crypto.com Coin.]

• Letting customers buy and manage cryp- Its original goal when it launched in 2016 was
tocurrency on their mobile devices in a to develop a crypto debit card, making it easy to
secure and convenient way spend crypto anywhere in the world.

• Tracking prices/movements of their assets Since then, it has expanded its mission to essen-
tially be a full-fledged crypto banking app.
• The cumbersome process of spending
cryptocurrency Today, it has a full suite of products:

• The complexity customers face in build- • Crypto.com Wallet – An easy-to-use,

ing and maintaining a diverse exposure to secure mobile wallet you can use to buy,
cryptocurrency sell, send, and track all your cryptocurren-
cies. As of this writing, you can buy and
• Borrowing against your cryptocurrencies sell seven fiat and 53 cryptocurrencies.
And you can use it to access all Crypto.
• And earning interest on your crypto assets.
com’s services.
Today’s project is an app that’s solving all these
• Crypto.com Card – A range of Visa-ap-
problems.
proved prepaid cards with a range of
What’s more, its model flips traditional finance benefits.
on its head.
• Crypto.com Invest – Automated trading
Consider a traditional bank. You can own a piece strategies that make investing in crypto-
of the bank by buying shares. That may entitle currencies easy. Users only need to pay
fees on profits.

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 • Crypto.com Credit
– Allows you to obtain
a loan backed by your
crypto holdings. Cur-
rently, you can get up to
50% of your collateral.

• Crypto.com Earn
– You can easily earn
interest on select crypto
deposits.

The Crypto.com ecosystem is

powered by its MCO utility to-
ken. And Crypto.com continues
to add uses for its token.
Source: Crypto.com
To make its products accessible
across the board, anyone can
use Crypto.com’s services with-
out owning the MCO token. But
we think customers will want to
hold MCO to get the most out
of its services.

That process of holding tokens

is called “staking.” And the
more MCO a user stakes, the
better services they get.

The first graphic on the right

shows the tiers and some of
the rewards for the Crypto.com
Card product. Source: Crypto.com

As you can see, the more MCO This innovative model encourages users to buy
you stake, the more benefits you receive. Certain and hold the MCO token.
levels can even get unique benefits such as 100%
reimbursement of Spotify or Netflix subscriptions. Check out the box on the next page for a run-
down of how the ecosystem works.
The utility of the MCO token extends to all of
Crypto.com. Check out the second graphic above
for some of the benefits you get for holding
MCO…

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 A Year of Holding a Crypto.com Card
It’s useful to run the numbers on what it would look like to be a Crypto.com cardholder. By the
end, you’ll see the benefits accrue to MCO holders.

In this example, we’re going to buy 500 MCO, stake it in the Crypto.com Wallet, get a Crypto.com
prepaid Visa card, and take advantage of the benefits.

Now, one thing to know is all rewards are paid in the MCO token. So if you earn $10 worth of
rewards, that will be paid in $10 worth of MCO. For simplicity, we’ll assume the MCO price stays
at $3 for the whole year.

As you saw from the first graphic above, with a starting stake of 500 MCO, you can get the Royal
Indigo or Jade Green Visa prepaid debit cards. At today’s prices that’s $1,500.

Keep in mind this not a “cost.” The MCO tokens are yours, and you can always sell them if you
want. But to take advantage of the benefits of these cards, you’ll need to hold your MCO for at
least six months.

Let’s say over that time, you pay your Netflix and Spotify subscription fees on your Crypto.com
card. And you spend, on average, $3,000 per month on your card.

With the subscriptions, you’ll get nearly $276 worth of MCO in rewards. And the 3% cash back
will get you another $1,080. In total, assuming an MCO price of $3, you would get an additional
452 tokens.

Overall, your stake would be worth 90% more at the end of the year just from normal spending.
And that’s with MCO’s price not moving at all.

Future Catalysts com appointed former Binance executive

Mariana Gospodinova as its European
While Crypto.com already has a full suite of prod- general manager. It’s now started taking
ucts, it’s not resting. It has catalysts in place to applications for European cardholders.
propel the project forward and onboard millions
of new customers. On top of that, Crypto.com will target Aus-
tralia and Canada this year. That means
1. The first catalyst is the Crypto.com card’s it’ll have 800 million more potential cus-
expansion. Currently, it’s available in Sin- tomers for its cards.
gapore, the U.K., and the U.S. (apart from
New York). 2. The second catalyst is the Crypto.com
Exchange. It’s a natural extension of the
And soon, it will be available to all of Eu- ecosystem. It launched late last year and is
rope. Crypto.com received the green light currently running in beta. But it expects a
for its European card program late last release to the wider public in 2020.
year. At the beginning of 2020, Crypto.

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 Features of the exchange include liquid- We think the market will value Crypto.com
ity, competitive trading fees, institution- around $1 billion, giving it a price-to-sales (P/S)
al-grade custody, and security. Plus, Cryp- ratio of roughly 1.7.
to.com partnered with Ledger Vault to
secure funds on the exchange and provide [The price-to-sales (P/S) ratio is a company’s
up to $150 million in insurance. market capitalization (the number of outstanding
shares multiplied by the share price) divided by
The first project launching off Crypto.com’s total revenue. Generally, a lower P/S ratio means
exchange is the Syndicate. It’s a fundrais- a cheaper investment.]
ing platform to help projects raise capital
to continue building critical infrastructure. That’s less than traditional banks, which com-
Crypto.com aims to make its exchange a mand an average P/S ratio of 2.2. But we think
top-10 exchange over the next five years. this 23% discount is conservative.

3. Finally, there’s Crypto.com Chain, the A billion-dollar valuation would put MCO at
company’s high-performance blockchain $64.25, or a 2,078% gain from today’s prices.
for retail. It enables merchants and users
Looking forward, Crypto.com has all the pieces
to complete transactions using crypto.
to grow its customer base to 10 million. With that
Crypto.com’s goal is to eliminate middle- many customers, it could get a valuation of rough-
men from the current payment infrastruc- ly $5 billion. That would give us a token price of
ture and pass those savings to its users. $313.41, or a 10,524% gain from today’s prices.

With its current suite of products and upcoming But if we enter another bull market, there’s no
catalysts, Crypto.com is in great position to add telling where valuations could go. By our “Blue
millions of customers. Sky” estimations, Crypto.com could see its mar-
ket cap rise to $25 billion.
What’s It Worth?
Under that scenario, the token would be worth
The lines between traditional banking and cryp- $1,582.90 – or a 53,558% gain from today’s prices.
tocurrency banking are quickly fading. It’s only a
matter of time before they’re one in the same. So the time to get in is now before Crypto.com
sees a huge influx of new users and its MCO utili-
And it’s big business. Global retail banking gen- ty token goes sky-high.
erated $2.1 trillion in revenues in 2018. And it’s
expected to grow to over $2.8 trillion in 2025. As always, place no more than $200–400 for
smaller accounts and $500–1,000 for larger ac-
Crypto.com, with its full suite of easy-to-use ser- counts into this trade. And remember: Use limit
vices – and more on the way – is in prime posi- orders and wait for the price to come within buy
tion to benefit from this influx of capital and shift range.
toward decentralized banking.
Action to Take: Buy Crypto.com (MCO)
By the end of the year, we believe it’ll have over Buy-up-to Price: Check the portfolio page here.
2 million customers. Assuming it can generate Stop Loss: None
$300 per customer (the average for a banking Buy It On: Bittrex, Binance, Crypto.com Wallet
client), it would have $615 million in revenue. Store It On: Crypto.com Wallet

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 Millionaire Pick No. 4: The Gateway to Privacy and security are at an all-time low. Ac-
Web 3.0 – Status Network (SNT) cording to experts, there’s a cyberattack every 39
seconds and hackers steal 75 records every sec-
John looked at the subject line of the email: “Ac- ond. In all, this issue costs the world an estimated
tion required regarding recent security breach.” $5 trillion every year.

As if dealing with a security breach wasn’t bad And it’s evolving. We now have fake news, “deep-
enough, it was from his Ashley Madison ac- fakes” that use artificial intelligence to create im-
count… For those unfamiliar, Ashley Madison is a ages and videos of fake events, bots, spam mail,
marketplace for discreet extramarital affairs and and other nuisances that diminish the trust in the
relationships. information we receive…

Obviously, security should be a huge priority for It’s become so engrained in our daily internet
a service like that. But Ashley Madison’s wasn’t experiences, the whole Web 2.0 technology stack
good enough. And a hacker managed to breach 37 will need to be replaced to solve these problems.
million accounts, including John’s.
The good news, though, is an innovative group of
John continued to read the email… startups are already tackling this.

“… We are preparing a letter to be mailed to: And we’ve found a startup creating a key piece of
(family address). The letter details all of your ac- technology for Web 3.0 – that’ll be the next itera-
tivities on Ashley Madison, including your profile tion of the internet as we know it.
information, your login history, and credit card
transactions.” Based on our projections, by just replacing this
one part of the stack, its value could grow to $3
John’s heart sank. His whole life had been thrown billion over the next few years. That would give us
upside down. And on top of everything, the hack- a return of 9,500%.
ers demanded a ransom.
But those are just under normal circumstances.
Ultimately, John didn’t pay the ransom. But he Remember, because of the upcoming Phenome-
did cancel his credit card and Ashley Madison non that I mentioned above (bitcoin’s halving),
account. this coin could go soaring over 80,000%.

And now, he says he must live his life under “a lot The Iterations of the Web
more stress.”
Since the dawn of the internet, we’ve gone
Now, at this point, you might think John got what through two distinct iterations:
he deserved. But like everything in life, John’s
story isn’t black and white. • Web 1.0 was a bunch of static websites.
We had a ton of information. But sharing
Regardless of how you feel, the point is: No one content and interacting with others was
should have to go through a breach of privacy and not easy.
security.
• Web 2.0 was coined in 2004. It empha-
John’s story highlights the problems with the sized the social web, where users could
internet today, also referred to as Web 2.0. easily interact and collaborate with each
other.

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 This second iteration led to a proliferation of new As we see it, this will mean every application from
applications. For example, you could join virtual Web 2.0 will be decentralized, including brows-
communities on Facebook. You could self-publish ers, storage, and operating systems.
with applications like WordPress. And you could
create and share videos on YouTube. That also includes messaging apps. And we’ve
found the project building the next-generation
For all the great applications Web 2.0 brought us, messaging app for Web 3.0.
it brought problems, too.
The Next-Generation Messaging App
And as John’s Ashley Madison story revealed,
those problems largely center around privacy and It’s called Status Network (SNT). Status a
security. When you look at the numbers, it’s hard messenger, crypto wallet, and Web 3.0 browser
not to get alarmed… all in one.

According to security experts, data breaches Founded in 2017, the project tapped Zug, Swit-
exposed at least 7.9 billion records – including zerland-based Bitcoin Suisse to hold its initial
credit card numbers, home addresses, phone coin offering (ICO). And it raised over $100 mil-
numbers, and other highly sensitive information lion in less than 24 hours.
– in 2019.
It’s using those funds to build a state-of-the-art
And no one is immune. From big tech like Mi- gateway to Web 3.0.
crosoft and Facebook… to corporations such
More specifically, Status is an open-source mes-
as T-Mobile and Capital One… to government
saging decentralized application (dApp). And it’s
agencies like NASA… All have experienced a data
a mobile interface to interact with dApps that run
breach in the last year.
on the Ethereum network.
As you can see, Web 2.0 is characterized by
This all sounds complicated, so let’s break it
insecure databases and opaque sharing practic-
down. To understand what it means, we need to
es. This is problematic because the large private
analyze Web 2.0 and its key problems.
companies that aggregate our data for this public
infrastructure act as big honeypots. And our per- As you saw above, two of them are security and
sonal, private data is the honey. privacy. These are exacerbated by fake news,
deepfakes, bots, trolls, and other nuisances. Tak-
This is where Web 3.0 comes in. It’ll return con-
en together, these threaten the legitimacy of the
trol to the users, which means they can access
media we consume.
data from anywhere. And it’ll be driven by cloud
applications and smartphones. The issue is in how Web 2.0 developed… Plat-
forms did everything they could to attract users.
So that means even more data… But this time
But their end goal wasn’t improving users’ expe-
around, we have the technology to keep our data
rience. It was to extract as much value as possible
secure. We have blockchain.
from those users.
Blockchain makes it possible to store data in a
Even today, users flock to these platforms for var-
secure way. And with our data decentralized,
ious reasons. But in the end, they find they have
personal information won’t be stored in the large
little control over the information they consume
data centers and databases of companies.
or how the platform is developed.

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 And their private, personal information ends up hold the keys to their serverless wallet.
being another product these platforms sell.
• Decentralized Web 3.0 Browser –
Status flips that model on its head. Navigate the growing ecosystem of dApps
without being tracked.
Legacy messaging apps are closed-sourced,
proprietary, and centralized. Status, on the other • Secure Messenger – Send private mes-
hand, is open-sourced and built on the decentral- sages with Whisper. Whisper uses peer-
ized Ethereum network. to-peer dark routing, making it impossible
for anyone to know anything about you or
Here’s what makes it different from legacy mes- whom you’re communicating with.
saging apps:
In addition to these three main features, the Sta-
• Send and receive encrypted messages, tus team is providing additional features. Here’s
smart contracts, and payments just a small sampling:

• Browse, chat, and interact with decentral- • Teller Network: A borderless, peer-to-peer,
ized applications and decentralized chatbots fiat-to-crypto exchange network

• Store and control crypto assets with the • Ethereum Naming Service (ENS): Gives
built-in Status Wallet. users an Ethereum address that’s like a
username, making it easier for users to
More importantly, unlike its centralized coun-
transfer funds
terparts, Status puts users in complete control of
their own personal data. • DApp Curation: A Status dApp Directory
curated by community members.
It’s all powered by its token, SNT.
And don’t forget: Status is an open-source proj-
Plus, Status enables users to become stakeholders
ect, meaning developers can build their own
in the network. Status users not only control what
projects on it in a permissionless way.
information they share, but they can vote on the
future development of the decentralized network It’s how Status will grow a robust ecosystem.
as well. Members of the Status Network help build the
products, tools, and infrastructure to grow the
Overall, Status’ goal is to provide an experience
network and community.
that users are familiar with today – but built for
Web 3.0. Some projects being built on the platform today
include:
The Nuts and Bolts of Status
• Assemble – Open and transparent funding
The main components of Status are the app, the
for Web 3.0 projects
network, and SNT.
• Embark – A developer platform for build-
The app provides three main features that allow
ing and deploying dApps.
users to:
So you can see how, unlike current platforms
• Secure Crypto Wallet – Safely send,
today, Status has the infrastructure to continue to
store, and receive crypto assets. Only users
evolve and grow.

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 As mentioned, SNT is the utility token that fuels Under that scenario, the token would be worth
the Status Network. It’s used for network gover- $7.20 – or an 80,347% gain from today’s prices.
nance and fuels network applications.
As always, place no more than $200–400 for
We’re at a great point in the evolution of the Sta- smaller accounts and $500–1,000 for larger ac-
tus project. Its app was in beta testing in 2019. In counts into this trade. And remember: Use limit
fact, Status was the No. 1 app in terms of develop- orders and wait for the price to come within buy
ment activity for 2019. During that time, the team range.
prepared to launch Version 1 (V1).
Action to Take: Buy Status Network Token (SNT)
The hard work has paid off. In February, Status Buy-up-to Price: Check the portfolio page here.
announced that Status V1 went live. So we’ll see Stop Loss: None
more developers and users on its network. Buy It On: Bittrex, Binance
Store It On: MyEtherWallet
What’s It Worth?
Millionaire Pick No. 5: Unstoppable Data –
Status V1 will set off a wave of user adoption and Streamr (DATA)
could bring Status to 1 million users over the next
year. As touched on above, data is one of the most valu-
able assets for today’s companies and platforms.
While that seems impossible, another brows- For example:
er-based project called Brave pulled off a similar
feat in 2017. From its ICO in June 2017 to the end • Facebook CEO Mark Zuckerberg once pre-
of that year, it topped 1 million users. So we’ll use dicted which Facebook users would start
that as a base for our calculations. relationships using user data.

For popular platforms such as Amazon, Aliba- • Twitter has used its data to forecast box
ba, Facebook, and Google, each user is worth an office revenues for movies.
average of $300. Since Status could become the
preeminent Web 3.0 platform, we think that’s • And Google has used search data to track
reasonable. At 1 million users, that would give influenza outbreaks.
Status a valuation of $300 million. And give SNT
In short, data can be very useful if you have the
a price of $0.09, or an 866% gain from today’s
access and right tools. And it’s a trend that’s only
prices.
going to get bigger.
Looking forward, if Status can follow a similar
Whether it’s through social media, Internet of
trajectory to Brave, it could have 10 million users
Things (IoT) sensors, or connected devices, we’re
three years from now. That would give it a val-
creating staggering amounts of data.
uation of $3 billion and make each token worth
$0.86. That’s a 9,558% gain from today’s prices. For example, every minute:
However, if you’ve been watching the crypto • People conduct over 3.8 million searches
space for a while, you know an epic bull market on Google.
like the one we saw in 2017 can shoot up prices by
thousands of percentage points. Under this type • The Weather Channel receives over 18
of “Blue Sky” scenario, Status could easily see its million forecast requests.
market cap balloon to $25 billion.

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 • Users watch over 4.3
million videos on You-
Tube.

All told, we create over 2.5 ex-

abytes of data every single day.
To put it in perspective, one
exabyte can store 250 million
DVDs.

So we’re producing the equiva-

lent of 625 million DVDs every
day. That’s over 1.2 trillion
hours of content… every 24
hours.

The amount of data is so big, we

now measure it in zettabytes (1
zettabyte = 1,000 exabytes). And
it’s not slowing down one bit. But it could be even better. Because the upcoming
bitcoin halving could multiply our gains in ways
Look at the chart above. As you can see, the world that seem unbelievable to us today. It could send
produced 41 zettabytes of data in 2019. And it’s this token soaring over 600,000%.
expected to grow over fourfold in the next six
years. That’s annual growth of over 126% per year. Surveillance Capitalism

As they say, data is the new oil. And for compa- Let’s start with the inherent problems companies
nies of the future to be successful, they’re going face with data collection and management…
to need to harness their data to better serve their
Most of us use various digital applications to
customers and fend off the competition.
manage our lives. We connect with friends on
However, to do that, they need access to both Facebook… Micro-blog about our favorite sub-
data and the tools to make sense of it. In other jects on Twitter… Manage our professional lives
words… data infrastructure. on LinkedIn… The list goes on and on.

The problem is that data infrastructure is concen- Here’s the thing, though: While we enjoy using
trated in a few, powerful hands. these mostly “free” services, they have a cost…
our data.
We’ve found the project solving this problem.
It provides a decentralized network for tam- It’s not just the data we willingly and knowing-
per-proof data delivery, a data marketplace, and a ly provide. It’s also the actions we take on these
powerful analytics engine for data-driven dApps. applications. The companies behind these ap-
plications know our clicking, posting, viewing,
Based on our projections, this project could easily purchasing, and other habits are a gold mine.
grow to $1 billion in value over the next few years
and deliver gains of over 24,000%. They’re increasingly monetizing our information.
And most of the time, we don’t even know it.

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 Some call it “surveillance capitalism.” We can see this in the table below. It shows the
top S&P 500 companies by market capitalization
The main culprits are Big Tech companies, in- in 2009 vs. 2019. What’s obvious is that Big Tech
cluding familiar names like Microsoft, Amazon, has been the big winner of the last decade. Data
Apple, Alphabet (Google’s parent company), and is, indeed, the new oil…
Facebook.

S&P 500 Top 10 Companies by Market Cap (in billions)

2009 2019
Company Sector Market Cap Company Sector Market Cap
PetroChina Energy $367 Microsoft Technology $1,050
Exxon Energy $341 Amazon Technology $943
ICBC Financial $257 Apple Technology $920
Microsoft Technology $212 Alphabet Technology $778
China Mobile Telecom $201 Facebook Technology $546
Walmart Retail $189 Berkshire Financial $507
Hathaway
China Financial $182 Alibaba Technology $435
Construction
Bank
Petrobras Energy $165 Tencent Technology $431
Johnson & Healthcare $157 Visa Financial $379
Johnson
Shell Energy $156 Johnson & Healthcare $376
Johnson

As you can see from the table, Big Tech compa- For example, insurers are known to buy social
nies have now siloed all this data on consumers. media data from Facebook. They analyze that
Not only do they have the data, but they have the data to dial into your habits. If you’re in a Face-
tools to analyze that data. book group called Savory Sweets, as opposed to a
group called Healthy Eating, you may find you get
They can extrapolate information from the data a higher insurance rate.
and use it in ways smaller organizations can’t.
And it gives these companies a lot of power. And Google has been known to gather data from
customers to block competitors in markets in
Of course, the question is how they use this data. which it operates.
But as we’ve seen, oftentimes, they’ll use it for
their benefit… and potentially at the expense of This data gives these companies great powers. So
others. much so, it’s attracting the eyes of regulators.

We might not even know the worst of it yet. But In fact, the Department of Justice recently
history suggests your data is being used in ways warned Big Tech that the data it amasses could
you’ve never even thought of. create privacy and competition concerns.

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 Makan Delrahim, the assistant attorney general And we’ve found the project doing just that.
of the Antitrust Division, said people’s private
information had become the lucrative “oil” for the Unstoppable Data
digital age. And its misuse could threaten to harm
Its name is Streamr (DATA).
consumers and corporate competitors.
In 2017, it also held its ICO on Bitcoin Suisse and
On top of monetizing unwitting users’ private
raised over $30 million.
data, there’s also the issue of keeping all that data
secure. Streamr got its start as a response to the Big Tech
giants’ dominance. Its founders believed decen-
For example, a bug in Google’s Google+ product
tralized infrastructure can distribute money and
led to an estimated 500,000 people’s information
power and unlock new use cases in a healthier way.
getting leaked. Instead of coming clean, Google
found a loophole in California’s state law that So from the beginning, Streamr’s goal was to
didn’t require it to disclose the leak. Eventually, build decentralized infrastructure for real-time
Google’s solution was to just phase out Google+. data. It would replace centralized message bro-
kers with a global peer-to-peer network. And it
Facebook had a similar situation with its Cam-
would use smart contracts and a decentralized
bridge Analytica scandal. Cambridge harvested
data network.
millions of users’ Facebook account data. It then
used the data for targeted political ads. And not On top of its platform sits a data marketplace,
one Facebook user had given consent. where people can easily buy and sell data.
What all these examples make clear is we need a And it also has powerful tools for analyzing data
better solution. We need a way to take back our and building dApps that can use the data.
data from Big Tech in a secure and decentralized
way. We need big data for the masses. Check out the box on the following page to learn
more about Streamr’s technology stack.

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 How the Streamr Platform Works

Source: Streamr

Here’s an overview of the Streamr technology stack’s components:

• Streamr Editor: A usability layer and toolkit, which enables rapid development of da-
ta-driven dApps.

Streamr Editor gives you all the tools needed to create, process, visualize, and sell your
real-time data without writing code.

• Streamr Engine: A high-performance processing and analytics engine that executes

quickly in a decentralized fashion.

Streamr Engine deals with high volumes of information and accepts data from various
sources, including financial exchanges, IoT devices, and social media. It turns raw data
usable for dApps.

• Streamr Data Market: A universe of shared-data streams anyone can contribute and
subscribe to.

• Streamr Network: The data transport layer, defining an incentivized peer-to-peer net-
work for messaging in the decentralized data pipeline.

The network is designed for low-latency, real-time data from IoT sensors, machines, and
other smart devices. And it’s simple to work with. You just need five lines of code to send
data.

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 • Streamr Smart Contracts: Enable nodes in the Streamr network to reach consensus,
hold stream metadata, handle permissions and integrity checking, and facilitate secure
token transfers.

In 2018 and 2019, Streamr made the components of its technology stack available. Now, it’s fo-
cused on the two milestones:

• Brubeck – Right now, core contributors run Streamr nodes. Brubeck will open it up to
third parties and decentralize who can run them.

• Tatum – This will add DATA (Streamr’s utility token) incentive for running nodes. And it
will require DATA payments from users. This will grow the Streamr ecosystem further.

It expects to reach both milestones in the next few months. Even though these aren’t complete
yet, we want to get into Streamr now. That’s because, as I’ll show you in the next section, it’s
quickly improving its product and growing the ecosystem.

Streamr Catalysts One we like is called Swash. It’s a browser exten-

sion that captures and anonymizes your search
One of Streamr’s innovations in 2019 is called data. It’s then aggregated to Streamr and sold.
Community Products (also called Data Unions). You get to control what data is sent. And 95% of
This is Streamr’s solution for a fairer data economy profits are split among the data contributors.
where users can get compensation for their data.
We think there’s huge potential for Community
Streamr added Community Products to create an Products as consumers will finally have a way to
environment where people can genuinely own monetize their data. Streamr is piloting this prod-
their data. It’s like any other data stream on the uct now, with plans to scale up over 2020.
Streamr marketplace, except that it generates its
data from multiple sources. Additionally, Streamr has some partnerships with
big corporations to pilot its products and develop
A good example is Fitbit data. Users would be use cases.
able to push the individual Fitbit data they cre-
ate to the Community Product. By combining Those partnerships include:
data from many sources, they could create a big
enough data set to attract serious buyers. • Hewlett Packard Enterprise (HPE):
Streamr and HPE are partnering up to
And if you’re contributing to that data, you’ll get monetize car data. HPE will collect data
paid. Streamr can do this easily because it built a from its onboard communications and
layer-2 protocol on Streamr called Monoplasma. deliver it to the Streamr Marketplace. The
It makes it efficient for recurring one-to-many Streamr Engine will extract value from
payments. that data. (Streamr’s pilot won the Plug
and Play Global Innovation Award for
As you can imagine, Community Products have Exceptional Performance from Europe’s
lots of use cases. And teams are already working largest innovation platform, Startup Auto-
on products for the Streamr Marketplace. bahn.)

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 • Electrify.Asia: Electrify is Singapore’s Streamr is positioning itself as the real-time
first decentralized energy marketplace. It data backbone for Web 3.0. By relying on decen-
aims to monetize the data it collects from tralized cryptography instead of trusting data
its PowerPod product, an IoT device that brokers, it allows real-time data to be easily be
tracks production from energy producers. shared and monetized.

• Mobility Open Blockchain Initia- According to Statista, big data is estimated

tive (MOBI): Streamr joined MOBI, a to reach $56 billion in 2020. And Streamr is
non-profit that includes four of the world’s well-positioned to claim a slice of that pie.
largest automakers – BMW, Ford, Gener-
al Motors, and Renault. MOBI develops As we explained above, Streamr is ready for
standards from pioneering technologies to mainstream usage. In the near term, we believe
improve safety and efficiency across mobil- Streamr can capture a quarter of a percent of the
ity and infrastructures. big data market. That would give Streamr a valu-
ation of $140 million, or $0.21 per DATA. That’s
• Apache: Apache is open-source web server 3,346% upside from today’s prices.
software. Today, it serves over 100 million
websites. Streamr has been integrated into Over the next few years, we think Streamr can
three of Apahce’s big-data processing tools. capture over 1% of a growing big data market.
The integration will help enterprises deliver That would put its valuation around $1 bil-
their data to the Streamr Marketplace. lion and give us a token price of $1.48. That’s a
24,513% gain from today’s prices.
In addition to these partnerships, Streamr is
making other moves for strong ecosystem growth However, if we see another 2017-like bull mar-
over 2020. ket, prices all across the crypto markets could go
ballistic. Under this type of “Blue Sky” scenario,
It launched TX in October 2019. TX is a compa- Streamr could easily see its market cap balloon to
ny that will promote enterprise building on the over $25 billion.
Streamr stack. It provides the consulting services
enterprises need before procuring a technology Under that scenario, the token would be worth
solution. $36.92 – or a 615,233% gain from today’s prices.

Already, TX announced a partnership with the So let’s take a position today before Streamr takes
World Wide Fund for Nature (WWF) Philippines off and DATA prices with it.
and UnionBank of the Philippines to track fishery
As always, place no more than $200–400 for
data for sustainable fishing.
smaller accounts and $500–1,000 for larger ac-
With Streamr’s innovative new products, partner- counts into this trade. And remember: Use limit
ships, and focus on enterprise growth, it’s set up orders and wait for the price to come within buy
for an explosive year. range.

What’s It Worth? Action to Take: Buy Streamr (DATA)

Buy-up-to Price: Check the portfolio page here.
As we mentioned, data is the new oil of the digital Stop Loss: None
age. And the amount of data we produce is ex- Buy It On: Binance, CoinSwitch
panding at an exponential rate. Store It On: MyEtherWallet

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 Customer Care: Toll-Free: (888) 501-2598, International: (561) 921-8774, Mon–Fri, 9am–7pm ET, or email [email protected].

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