Y

BM BIT www.bmybit.com

White Paper 2017

c

BmyBit Ltd 2017

Table of contents Introduction

I

Problem/Solution

II

Personal Automated Trading System

1

About PATS

2

PATS Algorithms

3

BmyCoin (BMYC)

5

About BMYC

6

Parameters

7

Issuance

8

Development

9

Traction to date

10

BmyBit in numbers

11

Road map

12

Marketing and financials

13

Go to market

14

Competition

15

Financial model

16

About us Team

17 18

Introduction BmyBit enables arbitrage and automatic trading across digital asset exchanges. The Personal Automated Trading System created by the CEO, Mario Stumpo, is a cloud-based web application using predictive analytics and interconnected to digital exchanges through APIs. The platform allows customers to conduct their own trading without holding their funds. Blockchain developed by BmyBit is used to issue a MultiChain based Token, BmyCoin (BMYC), which allows users registered at bmybit.com to pay fees for using the platform’s services, including PATS and arbitrage. As of now, there are over 120 holders of the Token and more than 600 BmyCoin transactions have been made. During the Token Pre-Sale, BmyBit sold 11,5 thousand BMYC, while 1,1 thousand BMYC has been earned back. To better support its expanding customer base, BmyBit created a dedicated forum for members of its community - BmyBit Club. The Club is a space where all users of the platform can exchange thoughts, comments and ask questions about anything connected to BmyBit. Currently, there are over 2,000 users registered on the platform and more than 300 of them are active traders on PATS. The average profits from trading through PATS reach 4.42%, with a typical strategy being active for 11 hours. Some of the results are truly astounding, with 203% profits scored by one of the users, followed by 119% and 76.03% by two other traders. The number of strategies opened to date has surpassed 5,5 thousand allowing for 178 BTC being traded on bmybit.com. One of the company's goals for the future is to obtain the relevant FCA’s licenses to create the first Automated Hedge Fund for cryptocurrencies. The idea is to allow BmyCoin holders to keep full control of their funds, as well as leverage their investment and use Social Trading features, which will be possible thanks to the blockchain consensus. Other plans involve Digital Asset Exchange implementation in the third quarter of 2018 and introducing APIs Banks in the first quarter of 2019. BmyBit will also work on incorporating improvements in accordance with Payment Service Directive EU.

I

Problem

?

?

?

Cryptocurrency trading is a fast growing segment of day trading but currently, many traders, professional and non-professional, are obliged to jump from one exchange to another in order to make better profits. Although, it is a rather tedious job, many traders find it to be the only solution to navigating through the crowded cryptocurrency exchange market.

Solution BmyBit has developed a Personal Automated Trading System (PATS) which operates across multiple digital asset exchanges. There is no deposit required when joining PATS and the customers’ funds are stored safely in the wallets of the exchanges chosen by them. The API facility will enable customers to conduct their own trading. The BmyBit Blockchain will be used to release the BmyBit Token and to store data from customers. The Token is a type of currency used to pay fees on the Local platform and to distribute dividends to investors. If users hold BmyBit Tokens, they hold a portion of the platform and, therefore, are entitled to their share of the platform’s profits.

II

Personal Automated Trading System

1

About PATS The BmyBit's Personal Automated Trading System - PATS - is a cloud-based web application using, that integrates the most popular cryptocurrency exchanges into a single application. To start automated trading strategies with PATS, users must integrate their accounts with exchanges through API (Application Programming Interface) keys. An API key is a code utilised by computer programs calling the API to identify the calling program, its developer, or its user to the Web site. (Each exchange provides API keys to their users) Before starting a strategy, users can switch the currency pair; switch to a different exchange; check the total balances, the funds available and, the funds in strategies

Security measures Users' passwords are hashed using PBKDF2, and all user-provided API keys are encrypted using AES-256. BmyBit HTTP and WebSocket traffic are encrypted using TLS. The number of decimals we are operating with during our calculations can vary from the liquidity providers. BmyBit can increase or decrease the number of decimals according to their policies and is currently operating with 8 decimals.

Benefits Users' funds stay safely stored in the wallets of their exchanges. Our sophisticated algorithms work 24/7 with no downtime. Businesses and developers can use our infrastructures for developing their own automated trading solutions. BmyBit does not charge fees based on initial investments and profits achieved.

Cloud based

1

B

No deposit required

No Fees

2

REST API

PATS Algorithms There are 3 different ways of making profits with PATS. Each algorithm represents an automated strategy that will help users to achieve their goals.

1- Static trading strategy A PATS strategy automatically places orders to buy and to sell in order to increase the amount of the digital assets involved with a chosen pair.

Minimum profits BTC

Minimum profits BTC

orders to sell 1a

orders to buy 1b Minimum buying point

starting point Minimum profits XXX

selling point

profits XXX

(initial investment)

orders to buy 1a

The PATS strategy automatically splits the initial investment in 2 equal sides and converts one side of the investment in the second currency of the pair (i.e.: if a user starts a strategy with BTC-LTC with an initial investment of 1 BTC, the PATS strategy immediately convert 0.5 BTC in LTC).

0.5 BTC

split Initial Investment: 1 BTC Pair: BTC-LTC

0.5 BTC converted in LTC

By splitting the investment into 2 sides, and converting one side in the other currency of the pair, the PATS strategy determines the initial price of the investment that will determine the calculation of the profits and of the losses. 3 2

2-Dynamic trading strategy The Dynamic trading strategy is an advanced version of the Standard trading strategy. It automatically places orders to buy and to sell in order to increase the amount of the digital assets involved with a chosen pair. It also follow the waves in order to restart the strategy every time that the price go far above the last selling price or far below the last buying price(but always above the risk level).

restart strategy

volatility seeker ask Minimum profits BTC orders to sell 1a

restart strategy selling point

(initial investment)

volatility seeker bid

orders to buy 1a

Minimum profits XXX

starting point

Minimum profits XXX

restarting point

restart strategy orders to buy 1a

restart strategy

Risk

3-Arbitrage BmyBit allows the simultaneous buying and selling of assets in different markets with the aim to take advantage of differing prices for the same asset across multiple exchanges.

Poloniex

Bittrex

BTC-USD

size

price

size

00.02905021 15.40342007

5725.720000 5725.000000

00.02905023 16.40342007

Price: 6.000$ 2.070000000 1.294856200

BUY

5731.010000 5730.870000

4 2

SELL

price 5726.720000 5726.000000

Price: 6.025$

2.080000000 1.304856200

5732.010000 5731.870000

BmyCoin (BMYC)

5

About BmyCoin (BmyBit Token) BmyCoin (BMYC) runs on a private blockchain which is unique and Bitcoin compatible. BMYC allows registered users to process payments, as well as to share the profits generated by our PATS. The token will entitle users to receive a share of the profits generated by our PATS. The share of each user will be distributed on a quarterly base and calculated over the percentage of BMYC that they hold compared to the total amount issued. BmyBit will issue a total of 10 million BmyCoins, which will represent 40% of the platform’s value. Dividends will be payed to the holders on a quarterly basis, with the payouts starting in the end of the first quarter of 2018. The company launched the Pre-sale of the token on August 16th, 2017. The crowdsale started at the initial price of $2.85, followed by an increase to $3.50 at the end of it. We aim to obtain the relevant FCA licenses to create the first Automated Hedge Fund for cryptocurrencies BMYC allows users to be part of a democratic system and will help them with keeping control of their invested funds. Y

Y

Y

Y

MultiChain Technology Bitcoin compatible A key design principle of MultiChain is maximal compatibility with Bitcoin Core, the reference client for the bitcoin network. This includes bitcoin’s network protocol, transaction format, block format and output scripts, as well as Bitcoin Core’s runtime parameters and JSON-RPC API. Almost all of the information in the Bitcoin Developer Documentation is applicable to MultiChain. Managed permissions We can dynamically control who can connect, send and receive transactions, create assets, streams and blocks. Each blockchain is as open or as closed as you need. Data streams We can create multiple key-value, time series or identity databases on a blockchain. Ideal for data sharing, timestamping and encrypted archiving. 6

BmyCoin Parameters root-stream-open

TRUE

lock-admin-mine-rounds

10

target-block-time

15

mining-requires-peers

TRUE

maximum-block-size

1000000000

mine-empty-rounds

10

anyone-can-connect

FALSE

mining-turnover

0.5

anyone-can-send

FALSE

initial-block-reward

0

anyone-can-receive

FALSE

first-block-reward

-1

anyone-can-receive-empty

TRUE

reward-halving-interval

52560000

anyone-can-create

FALSE

reward-spendable-delay

1

anyone-can-issue

FALSE

minimum-per-output

0

anyone-can-mine

FALSE

maximum-per-output

1E+18

anyone-can-activate

FALSE

minimum-relay-fee

0

anyone-can-admin

FALSE

native-currency-multiple

100000000

support-miner-precheck

TRUE

skip-pow-check

FALSE

allow-p2sh-outputs

TRUE

pow-minimum-bits

4

allow-multisig-outputs

TRUE

target-adjust-freq

-1

setup-first-blocks

60

allow-min-difficulty-blocks

FALSE

mining-diversity

0

only-accept-std-txs

TRUE

admin-consensus-upgrade

0.5

max-std-tx-size

100000000

admin-consensus-admin

0.5

max-std-op-returns-count

1024

admin-consensus-activate

0.5

max-std-op-return-size

2097152

admin-consensus-mine

0.3

max-std-op-drops-count

5

admin-consensus-create

0.3

max-std-element-size

32768

admin-consensus-issue

1

7

BmyCoin (Issuance) The total amount of BmyCoin issued will be 10 million. 1.5 million BmyCoins will be distributed for the marketing bounties to the crowd, and an additional 2 million will be allocated amongst the BmyBit team members. BmyBit will keep 2.5 million Tokens in reserve, while the crowdsale, which inlcudes the Pre-sale and the ICO, will constitute for 4 million BmyCoins. Additionally, 2 million BmyCoins will be burnt on the “first-in, first-burnt” basis, starting immediately. The total of other 3 million BmyCoin will start being burnt as soon as the reserve of 2.5 million BmyCoins will start to be released in the market.

Total BmyCoin (BMYC) 10,000,000

To Burn 2,000,000

Crowdsale 4,000,000

Reserve 2,500,000

Team 2,000,000

40%

25%

20%

Pre-sale BMYC 1,000,000 10%

ICO BMYC 3,000,000 30%

Marketing 1,500,000

15%

Period 1

Period 2

Period 3

Period 4

100,000

250,000

300,000

350,000

$2.85 $285,000.00

$3.00 $750,000.00

$3.25 $975,000.00

$3.50 $1,225,000.00

Period 1

Period 2

Period 3

Period 4

500,000

650,000

850,000

1,000,000

$4.25 $4.50 $2,000,000.00 $2,762,500.00

8

20%

$4.75 $5.00 $4,037,500.00 $5,000,000.00

Development

9

Traction to date 1st May 2016 - 6th November 2017

Our users Non-paying Users

Active traders +300

Active traders on PATS

Users +2K

BmyCoin Holders

BmyCoin Holders +120

BmyCoin Holders + Traders on PATS

Users 50.6 K

Sessions 94.3 K

Page Views 310.6 K

Avg. Session Duration 00:04:58

Bource Rate 59.83%

Pages/Session 3.29

Conversions 1850

42.4% New Visitors

57.6% Returning Visitors

Audience Overview 45.0 K 36.0 K 27.0 K 18.0 K 9.0 K 0 May 16

Aug 16

Nov 16

Feb 17

May 17

Aug 17

Nov 17

source: google analytics

10

BmyBit in numbers PATS

BmyCoin

Blockchain

Average Profits Lifetime

11 hours

4.42%

N. Strategies Opened

Blockchain Transactions

+5.5K

+10K BMYC Transactions

Y

BMYBIT

+600

Total Volume Traded

+178 BTC

BMYC Holders

BMYC Earned Back

+110

+1.1K BMYC Sold (pre-sale)

+11.5K

PATS best results BTC/BTA STRATEGY

SCORES + 203% BTC

Started 5 June 2017 20:58 Closed 2 July 2017 21:00 BTC/ABY STRATEGY

SCORES + 119% BTC

Started 19 January 2017 10:09 Closed 13 February 2017 22:07 BTC/USD STRATEGY

SCORES + 76.03% BTC

Started 30 September 2017 17:19 Closed 18 October 2017 18:10 source: bmybit.com as of 06/11/2017

11

Road map 30 Dec 2015 Jan 2016

PATS Beta

May 2016

1st BmyBit Hackathon (Trading contest)

Oct 2016

New Design

Jan 2017

PATS Release

Jun 2017

BMYC Release (pre-sale)

Aug 2017

REST APIs (Beta)

Sep 2017

10 Exchanges (Beta)

Sep 2017

Arbitrage (Beta)

Oct 2017

BmyBit Hackathon (Open APIs contest)

Nov 2017

To-do list

1st PATS Prototype

Dynamic Strategy (Beta)

Dec 2017

ICO

Dec 2017

FCA Application Process (Start)

Jan 2018

12

Social Trading (Beta)

May 2018

Digital Exchange BMYC-BTC

Dec 2018

APIs Bank

Apr 2019

Achieved

BmyBit Ltd Incorporation

Marketing and financials

13

Go-to-market Revenue (1 Aug 2017-31 Oct 2017) Monthly expenditure per user

$4.60

Annual expenditure per user

Total revenue:

$55.00

$44K

We integrate the most popular cryptocurrency exchanges into a single application. EXCHANGES

N. OF USERS

TAM CALCULATION

COINBASE/GDAX

6,000,000

COINBASE/GDAX

$330,120,000

BITTREX

800,000

BITTREX

$44,016,000

OTHER PROVIDERS

4,000,000

OTHER PROVIDERS

$220,080,000

TOTAL

10,800,000

TOTAL TAM FOR PATS (£/YEAR)

$594,216,000

Although there are more than 100,000,000 cryptocurrency users spread worldwide, the number of wallets enabling users to trade pairs of currencies is around 10,800,000. 6M COINBASE/GDAX 4M OTHER PROVIDERS 0.8M BITTREX 10.8M BMYBIT

TAM = $595 M Our products and services are available on BmyBit.com, Facebook, Twitter, LinkedIn, and Instagram. Marketing campaigns recently started on alternative channels/forums dedicated to cryptocurrencies. Bitcoinadz.io is our business partner for marketing with referrals.

Other

Referral Sessions: 54,085 Avg. Session Duration: 00:03:54 Conversion Rate: 2.98%

Direct Sessions: 18,251 Avg. Session Duration: 00:05:14 Conversion Rate: 2.77%

14

Users registered with BmyBit: +2K

Organic Search Sessions: 6,716 Avg. Session Duration: 00:10:04 Conversion Rate: 4.41%

Sessions: 91 Avg. Session Duration: 00:13:22 Conversion Rate: 8.79%

Social Sessions: 1,823 Avg. Session Duration: 00:08:57 Conversion Rate: 6.64%

Competition TradeBlock, a New York-based company, can be considered as BmyBit’s main competitor. This company operates within the same field of the PATS (open APIs, blockchain, trading with cryptocurrencies, and compliance) but with a different business model.

Although TradeBlock is already connected with 7 liquidity providers (more than PATS), its services are geared towards enterprises and relies on a B2B SaaS model. BmyBit wants to innovate by introducing a multileveled blockchain with a C2C SaaS model. By providing different levels of membership, PATS users will be able to allocate funds to other users for trading and generate profits from other users' strategies. PATS would also assist the development of other businesses through its open APIs. Other automated trading systems, such as Haasonline and BTC-Robot, can be considered competitors of PATS, but only in their basic trading functionality. While Haasonline is designed for coders and hackers that want to implement their own codes for trading online, BTC-Robot does not offer any customisable service. Both Haasonline and BTCRobot use B2C and B2B SaaS models and sell their services through monthly and yearly subscriptions. Focusing on different aspects of open APIs interconnections and aiming to develop a multileveled blockchain system, Bmybit can't be considered as a direct competitor of Haasonline and BTC-Robot but it is always monitoring them features in order of improving customer experience, data visualisation, and other (eventual) technological innovations.

15

Financial Model (USD) Year 1

Revenue Costs

Year 2 $1,201,304

$115,332,180

Costs of Good Sold

$257,532

$402,952

Sales & Marketing

$613,611

$2,479,785

Research & Development

$83,185

$158,510

General & Administrative

$452,474

$452,474

-$205,498

$7,038,457

EBIT

Cash needed to cover costs

$450,000

PRE-MONEY VALUATION

$7,860,000

Growth Hypothesis Projected Market share: 0.93% Projected Number of Customers: 100K Year 1

Year 2

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

$4.60

$4.60

$4.60

$4.60

$4.30

$430

$3.90

$3.90

Monthly growth rate in number of new customer

35%

30%

25%

20%

10%

8%

6%

3%

Monthly revenue churn rate

70.0%

60.0%

50.0%

50.0%

30.0%

20.0%

15.0%

10.0%

Hypotheses Average monthly price of subscriptions

16

About us

17

Team The story of BmyBit Ltd began in December 2015, when Mario Stumpo founded the company in London. At that time, BmyBit was taking its very first steps with the Personal Automated Trading System (PATS). Testing the PATS prototype was necessary to ensure that the system was working properly. The first PATS prototype was introduced in March 2016, while additional trading functions were added several months later, in October 2016. With time, the BmyBit team was also expanding. Mario was joined by two engineers, Haithem Abdelli and Samir Allous, who helped him with transforming his vision of the platform into reality. The website’s current design was created by Ilaria Morelli, an accomplished designer, who also joined BmyBit’s at the early stages of its incorporation. One of the most important people, who have been involved with the company from its infancy stage, is Jonathan Price. Currently, the director of BmyBit, Jonathan was also its first investor together with Steve Bailey. BmyBit’s growth was marked by new logo incorporation in April 2017, as well as introduction of new landing page design. Another huge milestone for the company was the deployment of the first liquidity provider, Bittrex, which was followed by adding two more exchanges, Poloniex and Gdax. At the same time, BmyBit started participating in Huge Thing acceleration programme, during which the Pre-Sale of BmyCoin began. The wallet for BmyBit’s Token was also released, opening the door for the upcoming ICO, which will take place at the end of 2017.

MARIO STUMPO

Founder and CEO

MSc Law @LUISS - MSc Economics @LUISS - PGC Finance @LSBF

Mario is LUISS Guido Carli University graduate, where he obtained an MSc in Law and an MSc in Economics. He also studied at London School of Business and Finance, where he achieved a PGC in Finance. Passionate about the numbers, Mario started his career in Rome, working as a tax advisor for some of the leading Italian firms. After discovering cryptocurrencies, he developed several algorithms for trading and predicting value of currencies. This interest led him to founding BmyBit Ltd.

SAMIR ALLOUS

CTO

Engineer's degree in Computer science @ENSI Samir graduated from the National School of Science in Tunisia, where he obtained Engineer’s degree in Computer Science. Samir is an ambitious CTO with passion for new technologies, which makes his job at BmyBit an intriguing challenge. He is highly skilled with data securities and capable of solving problems in many different areas of technology. At the same time, Samir is an extremely humble individual who understands the needs of customers and always delivers solutions which fit their expectations.

18

Team JONATHAN PRICE

Director

MA Law @University of Cambridge Jonathan is an accomplished, adaptable and visionary director with wide-ranging and varied expertise and a wealth of global business knowledge across a broad range of client and employer sectors, including not for profit. Jonathan is also the first investor of BmyBit, as well as an investor in several other successful companies. Currently, he holds the position of a director at BmyBit and is also a mentor of Mario. He is also a lecturer of M&A at the University of Law of London, and at the London School of Business and Finance.

STEVE BAILEY

CFO

Council Member @ACCA Steve is a successful investor, entrepreneur and director. He has cross-board experience in FTSE 100 and Fortune 100 companies including Reed, G4S, Datapay, Sage, XO and Experian. He is regularly published in financial, technology, security and sustainability matters. Steve is also a visiting lecturer on the Sales and Marketing MBA course at the Grenoble Business School. As a specialist in business growth, financial management, and strategic planning, he contributes his knowledge and experience to the company's development.

ILARIA MORELLI

Designer

BSc Industrial Design @La Sapienza - MSc Photography @ScuolaRomana di Fotografia Ilaria is a visionary designer, whose background lies in fashion and food photography. She began her journey with design in Rome, where she graduated with a Bachelor's degree in Industrial Design from La Sapienza University, as well as Master’s degree in Photography from Scuola Romana di Fotografia. Ilaria joined BmyBit in London with an aim dedicate her skills to enhance the website’s usability and develop its new layout. Currently, she is responsible for all the creative design decisions at BmyBit, while working closely with Mario Stumpo and Samir Allous on the company's overall development.

VLADISLAV IOUKHYMA Regulatory Adviser LLB (Hons) Laws @Durham University LLM International Banking and Finance Law @University College London Vladislav is a young professional who started his career as a regulatory consultant for financial services firms.His Consulting experience includes advisory on FCA authorisations for a variety of consumer credit firms. Vladislav currently provides compliance oversight to a major automotive manufacturer with respect to lending and credit broking activities as part of the consumer credit regime. Canadian, amateur trader, tiramisu enthusiast - Vladi is the perfect match for a FinTech start-up.

HAITHEM ABDELLI

Software Engineer

Engineer's degree in Computer science @ENSI

Haithem is the first engineer who joined Mario in his venture. He is a brilliant developer, who is able to learn new skills fast and with an obsessive attention to detail. Haithem obtained an Engineer’s degree in Computer Science at the National School of Science in Tunisia, where he held the position of president of the OSSEC. Haithem is a supporter of the open source system, as well as an accomplished violinist.

ALICJA RUTKOWSKA

Content Marketing

BA Music with Enterprise @University of Leeds

Alicja graduated from University of Leeds with a Bachelor’s degree in Music with Enterprise. She is an experienced content writer with a history of working in the music industry. She learnt skills in music, business, as well as media and communication. Today, while working for BmyBit, she hopes to use her arts and music background as an additional value for the team.

19

c

BmyBit Ltd 2017

All rights reserved. Apart from any use permitted under UK copyright law no part of this pubblication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means without the prior written permission of the publisher, nor be otherwise circulated in any form of binding or cover other than that in which it is published and without a similar condition being imposed on the subsequent reader. Written by Mario Stumpo Design by Ilaria Morelli Revision by Jonathan Price and Vladislav Ioukhyma Approved by our early adopters!

Y BmyBit Ltd [email protected]

BmyBit LTD. 54 Kestrel Avenue, London, England, SE24 0EB REGISTERED IN ENGLAND AND WALES, REGISTERED NUMBER 09931897

www.bmybit.com