COINSILIUM
GROUP LIMITED
("Coinsilium"
or the "Company")
UNAUDITED
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE
SIX-MONTH PERIOD ENDED 30 JUNE 2024
Coinsilium Group
Limited (“Coinsilium” or the “Company”), the Web3 investor, advisor, and
venture builder, is pleased to announce its
unaudited consolidated interim financial statements for the six
months ended 30 June 2024.
Financial
Highlights:
-
Revenue for the period decreased to
£3,000 (H1 2023: £56,417)
-
Profit for the period from
continuing operations £29,545 (H1 2023: loss of
£104,247).
-
Profit per share
of 0.01 pence (H1 2023: loss per share of 0.06
pence).
-
As at
30 June 2024,
cash and cash
equivalents, amounted to £429,581 (H1 2023: £608,355).
-
Net fair value gain on financial
assets of £336,160 as at 30
June 2024 (H1 2023: £109,197).
-
Available for sale financial assets
at fair value through profit or loss increased to £2.5m at
30 June 2024 (FY 2023:
£2.16m).
-
Total other current assets
(Cryptocurrencies, tokens and rights to future tokens) held at
£1,061,520 as at 30 June
2024 (FY2023: 966,716).
-
No dividends were paid or
recommended to be paid during the period.
Corporate
Highlights:
-
New agreement with global trade
exchange platform LC Lite (“LC Lite”) for the provision of
strategic advisory services in respect of the forthcoming token
launch for its decentralised trade finance platform, now rebranded
as Nexade Finance.
-
Placing of 18.9m new ordinary
shares at 2.5 pence per share to raise £472,500 in gross proceeds
for application against strategic investing activities and general
working capital requirements.
Post Period
End Highlights:
-
Strategic Web3 Collaboration
with Liteflow with aim to
provide financial backing, comprehensive advisory services, and
cutting-edge technological resources to support budding companies
navigate the complexities of the Web3 landscape and lay a strong
foundation for long-term business success and
innovation.
-
SAFT signed to acquire Otomato Web3
Automation Protocol Tokens. Otomato is a Web3 ‘no -code’ solution designed to
simplify trader interactions with DeFi platforms through automation
and user-friendly interfaces. It is designed to bridge the gap for
traders without coding skills by automating complex tasks and
providing clear, intuitive guides that simplify the process of
building applications and by eliminating the complexities of
blockchain development.
The Directors
of Coinsilium Group Limited take responsibility for this
announcement.
For further
information, please contact:
|
Coinsilium
Group Limited
Malcolm Palle,
Executive Chairman
Eddy Travia,
CEO
|
+44 7785 381
089
+350 2000
8223
www.coinsilium.com
|
|
|
|
|
Peterhouse
Capital Limited
(AQUIS Exchange
Corporate Adviser)
|
+44 (0) 207 469
0930
|
|
|
|
|
SI
Capital Limited
Nick
Emerson
(Broker)
|
+44 (0) 1483 413
500
|
|
|
|
DIRECTORS’
STATEMENT
The Company ended
the period under review with over £0.4m cash at bank and £1.1m in
other current assets including Cryptocurrencies, tokens and rights
to future tokens.
The digital asset
markets have recovered significantly since the start of the
reporting period, which has had a markedly positive impact on the
Company’s cryptocurrency holdings as the profit from continuing
operations increased to £29,545 from a loss of £104,247 in H1
2023.
Throughout the
period, Coinsilium continued to make solid operational progress
across its investment and advisory activities, and we are pleased
to provide details of developments and significant news released to
the market during the reporting period:
Investment Portfolio Update
Indorse and
Byzant Web3 Ecosystem
On 29 January 2024,
the Company provided an update regarding its investee, Web3
development company Indorse Pte. Ltd. (“Indorse”), and the ongoing
collaboration with Indorse on the ‘Byzant Web3 Social Network
Ecosystem’ (“the Collaboration”). The primary focus of this
collaboration has been on the development of a range of Web3
applications. One such application, the Bastion Wallet was launched
in August 2023 and enables both seasoned crypto users and newcomers
to seamlessly interact with Web3 applications.
Additionally,
Indorse’s technical team has been working closely with A-ADS
one of the
longest-established and largest crypto and Bitcoin advertising
networks, to develop Adbazaar, a decentralised advertising platform
tailored for Web3 advertisers and publishers.
The involvement of
A-ADS, whose core team brings 13 years of experience in
crypto-based advertising, alongside Coinsilium and Indorse,
reinforces the depth of expertise driving the development of the
Byzant Web3 Ecosystem.
Web3 advertising presents a highly
promising but still underdeveloped opportunity compared to its
well-established role as a revenue driver in Web2 social media.
Coinsilium views early movers in the Web3 advertising space, such
as Adbazaar, as being well-positioned to capitalise on this
emerging market. While Adbazaar is still in its development phase,
the project holds significant potential to leverage early entry
into the Web3 advertising landscape. Backed by industry veterans
like A-ADS, the project aims to position itself as a competitive
player, ready to capitalise on the nascent revenue opportunities in
this sector.
Throughout the period, Adbazaar has
been the primary focus for the Collaboration, due to its clearer
path toward commercialisation and potential to generate early
revenues. As the project gains traction in the Web3 advertising
market, it will provide a solid foundation for developing the
additional applications within the Byzant ecosystem. This approach
allows us to focus on more immediate opportunities, while the
broader range of applications will be prioritised once Adbazaar is
fully refined and ready for launch.
Managing these steps carefully is
essential for ensuring long-term scalability and success. The
latest version of the Adbazaar platform is currently being tested
by A-ADS, marking a key milestone in this strategy.
Greengage
Coinsilium holds an
equity investment in Greengage Global Holding Limited
(“Greengage”). Greengage’s
core business activity centres on providing distributed e-money
account services through partnerships with regulated
payments-as-a-service firms, tailored to entrepreneurs, SMEs,
family offices, and digital asset firms. Greengage offers its
clients personal and business e-money accounts in over 50
currencies, including GBP, EUR, and USD. Clients benefit from 24/7
account access and a dedicated relationship manager for
personalised support. The services include faster payments, CHAPS,
and SEPA payment services, with access to SWIFT payments and
Foreign Exchange (FX) depending on the chosen regulated partner
provider.
Greengage also provides value-added
services through a network of third-party providers. One such
service is B2B loans, with the platform facilitating over a quarter
of a billion USD in lending since its inception. An example of an
innovative product is lending in fiat against tradable
cryptocurrencies on a non-recourse basis to provide growth capital,
alongside other unique financial solutions.
During the period
Greengage notified Coinsilium that it has signed an agreement with
a new regulated partner to bring forward the launch of its USD
currency accounts (as well as several other currencies including
CHF, SEK and CAD) along with FX and SWIFT payments for its
clients.
This is significant
news as there still remain very few "crypto friendly" payment
providers offering USD accounts. Greengage management expect that
this new agreement will both help to attract new clients for their
services as well as strengthen their existing client relationships.
Greengage also advised that they continue to maintain a healthy
pipeline for new account opening submissions.
Post
Period Developments
On 5 July
2024 Greengage
announced news
of a new collaboration with global cryptocurrency exchange
Coinbase to
originate SME debt on the Coinbase Diamond Protocol. This
collaboration seeks to utilise blockchain technology to provide
SMEs with access to capital, promising a more efficient and
transparent financing solution. The Coinbase Diamond protocol
enhances the issuance and management of private capital. Using
blockchain technology, the protocol issues native digital debt,
making the process more secure and accessible to a broader range of
investors.
In early September Greengage
announced that it has been selected from over 1,228 applications to
join 20 other startups in Hub71’s 15th cohort in Abu
Dhabi, as part of the Hub71+
Digital Assets program. At the same time, Greengage announced that
it has established its first office in Abu Dhabi from where it aims
to scale and grow its operations within this global tech
hub.
Further information
on Greengage is available in our Web3 report, available for
download from the Coinsilium Website:
https://coinsilium.com/investors/web3-reports
Coindash
Coindash’s main
product is the SSV Network. Ssv.network is a fully decentralized,
open-source ETH staking network, based on Secret Shared Validator
(SSV) technology. Ethereum validators are required to stake 32 ETH
and operate a software validator client alongside legacy and Beacon
Chain nodes. This process introduces complexity, especially as the
creation of a validator results in a crucial Validator Key
responsible for transaction signing. SSV Network addresses this
complexity, enhancing validator key security, and delivering
benefits to the broader Ethereum network, staking pools, services,
and individual stakers.
There are currently
11,233,472 SSV tokens in circulation.
As of 16 August
2024, these were the SSV Network metrics:
• 878 Operators
• 41,642 Validators
• 1,332,544 Staked ETH
• USD3.495Bn TVL (Total Valued
Locked)
Revaluation
of Coindash Interest
As of 31 December
2023, the price of the SSV token stood at $6.83 per token. By 30
June 2024 at the end of the reporting period, the token price had
increased to $36.09, with a peak of $61.30 per token recorded on 26
March 2024 with a fully diluted market capitalization for the total
supply of SSV tokens at US$713.4 million.
Given the
substantial SSV token holdings in Coindash's cryptocurrency
treasury and the significant price appreciation of SSV tokens
throughout the reporting period, the Company has determined to
revalue its interest in Coindash. This decision is grounded in the
material increase in the value of Coindash’s liquid SSV holdings,
and the revaluation is applied pro-rata to the Company’s stake in
Coindash.
While the price of
the SSV token experienced a significant increase of 528% over the
reporting period, the Company’s revalued its stake in Coindash by
346%, adjusted to reflect the volume-weighted average price (VWAP)
performance of the SSV token. This adjustment takes into account
the fluctuations in SSV tokens market liquidity and its overall
trading volume during the period.
Silta
Finance
Coinsilium holds a
convertible loan and option interest in Silta. During the period,
Silta notified Coinsilium that it had received an investment from a
top 10 global infrastructure development bank (“Bank”) as part of a
strategic partnership agreement to build a climate financing
marketplace, powered by AI, for bankability and sustainability
assessments. This strategic partnership aims to help support
governments, infrastructure developers, and financial institutions
to reach their goals of deploying US$800B towards Climate Financing
by 2030. Silta’s strategic partnership with the Bank aims to create
the benchmark for climate financing due diligence, thereby
unlocking an US$800B opportunity within Asian markets, opening the
door to a US$1.3T global market for projects driving the transition
from fossil fuels to renewables.
Post
Period Developments
In a recent update
Silta advised its shareholders that is has been building on its
work over the last 8 month and is now working on a contract
extension with a global bank to continue the development of its
white-label solution as they prepare to go into production-grade
and publicly launch the platform.
On 14 September 2023
Coinsilium announced that Seedcoin, its 100% owned Gibraltar
subsidiary, had signed a Convertible Loan Agreement and Option
Agreement with Silta as a cornerstone investor in their funding
round. The Convertible Loan Agreement provided a loan principal
amount of USD50,000 at a pre-money valuation of USD5m. The loan was
granted for a period of six months, converting at maturity into
22,306 new common shares of Silta at a price of USD 2.2416 per
share.
As at the time of
this report we note that there has been a delay in the issuance of
the new shares, and it is expected that the new shares will be
issued to Coinsilium within the coming weeks. The Option Agreement
for up to USD500,000 provides the rights to subscribe to up to
163,575 new shares in Silta at a pre-money valuation of USD7.5m
valid for 12 months from 8 September 2023.
An addendum to the
Option Agreement was executed on 16 September 2024 whereby the
parties agreed on an extension of the Long-Stop Date by 6 months
which effectively means that the Option Agreement will now be valid
till 7 March 2025.
Web3
Investment Portfolio
Yellow
Network
Coinsilium holds a
Simple Agreement for Future Tokens (“SAFT”) in Yellow
Network, a Layer-3
decentralised Broker Clearing Network powered by State Channels
used for communicating and trading between brokers and aggregating
liquidity of connected nodes. Exchanges, brokers, and trading firms
connect to the P2P network using a unified communication protocol.
The main target of Yellow Network is to interconnect all
blockchains unlocking access to liquidity for truly decentralised,
cross-chain and ultra-high-speed trading. The Yellow Network public
launch and token listing is slated for Q4 2024. The token listing
is a critical milestone since, once tokens are issued and listed on
an exchange, this will provide for a mark-to-market valuation
reference point for Coinsilium’s investment and potential liquidity
event subject to vesting terms.
Under the terms of
the SAFT, Coinsilium will receive USD200,000 in value of YELLOW
tokens, vesting over a period of time. At this stage the Company
cannot disclose specific details regarding price or number of
Tokens to be received. Further details will be provided by way of
an update to the market in due course, when the Company is able to
do so.
Post
Period Developments
On 18 September 2024 Yellow
Network announced that it had closed a US$10 million seed
round led by Ripple co-founder
Chris Larsen and other notable investors
including leading Ethereum developer Consensys, crypto
market-making and trading firm GSR and crypto native VC firm
Moonrock Capital. The Yellow Network public launch and token
listing is slated for Q4 2024.
Further information
on Yellow Network is available in our Web3 report, available for
download from the Coinsilium Website:
https://coinsilium.com/investors/web3-reports
GGs.io
Coinsilium holds a
SAFT in GGs.io, as announced on 22 June 2022. GGs.io serves as a
gateway to the Latin American (LatAm) market for AAA and Web3 game
studios and is currently in the process of establishing a
gaming-focused fund aimed at acquiring and managing digital assets
in the gaming sector. Over recent months, GGs.io has entered into
SAFTs and agreements with reputable Web3 gaming studios, acquiring
tokens for Web3 games that they believe have the potential to
become market leaders within their respective genres.
GGs.io’s investment
strategy is focused on acquiring tokens from what they identify as
the top 1% of games, particularly from studios that succeed in
replicating or improving upon existing Web2 game franchises. The
Directors of Coinsilium believe that the GGs.io team possesses the
expertise needed to identify future leaders in the Web3 gaming
space, drawing on their experience with titles such as League of
Kingdoms, Champions Ascension, FTW by Jungle, Off the Grid,
RavenQuest, and Gunzilla.
GGs.io has advised
Coinsilium that it will continue to support gaming studios with
LatAm market expansion, particularly those issuing tokens to be
held by their future gaming fund. Alongside Coinsilium, other
notable investors in GGs.io include Orange DAO, Boost VC, Ripio,
and strategic angels from the BAYC community and the entertainment
industry.
Ember Sword
Web3 Game
Ember Sword is a
modern MMORPG crafted by veterans of both the gaming industry and
competitive gaming, from world champions to e-sports
legends.
The team behind
Ember Sword has been a part of creating some of the biggest games
in the world: AION, Cyberpunk 2077, Diablo 3, Guild Wars, Hitman
1/2/3, Kingdom Come: Deliverance, League of Legends, Mafia:
Trilogy, Star Wars: Galaxies, The Witcher 2/3, Titan Quest,
Valorant, World of Tanks, World of Warcraft. Experience from top
studios in entertainment and the games industry, from Activision,
Blizzard, Disney, EA, Google, King, MARVEL, Microsoft, National
Geographic, RIOT, Unity, VIACOM, YouTube, Wargaming.
During the period,
the Company acquired an unspecified number Ember tokens via a SAFT
with a linear vesting token distribution which will complete by
August 2025.
Other Corporate Developments
Subscription
and Placing
On 8 March 2024,
Coinsilium announced a strategic financing done via a combination
of a placing and subscription, raised £472,500 through the issue of
18,900,000 new ordinary shares of no-par value (“Ordinary Shares”)
in the Company at an issue price of 2.5p per share (“Financing
Shares”). Included within the Financing, Malcolm Palle (Executive
Chairman) and Eddy Travia (Chief Executive Officer) participated
with a subscription of £40,000 in total. In addition, 3,356,000
Ordinary Shares were issued on the same terms as the Financing
Shares for payments totalling £83,900 in respect of a broad range
of business support, marketing and communications services,
designed primarily to broaden awareness of the Company’s value
proposition and attract a wider range of on-market investors
(“Service Shares”). Each Financing Share and Service Share included
an attaching warrant to subscribe for a further new ordinary share
at an exercise price of 3.75p and with a life to expiry of 3 years
from Admission to trading of the new Ordinary Shares, pursuant to
the Financing (in total 22,256,000 “Financing and Service
Warrants”). The Financing underpins the Company’s working capital
position and importantly, enables an acceleration of certain
operational and investing activities at a time when AI and Web3 are
rapidly advancing and Coinsilium wishes to remain at the forefront
of various Web3 technology initiatives.
Advisory
Services – LC LITE/ NEXADE
On 20 February 2024
Coinsilium announced it had signed an agreement with global trade
exchange platform LC Lite (“LC Lite”) for strategic advisory
services in respect of the forthcoming token launch. LC Lite was
recently acquired by Incomlend, a regulated global invoice finance
marketplace for SMEs with licenses to operate in Singapore and in
Hong Kong. LC Lite aims to bring Web3 decentralised technology to
Incomlend, with improved marketplace liquidity, multi-currency
solutions for cross-border export financing and a broad usage of
stablecoins. The project has since been rebranded and launched
as NEXADE and
is well positioned to capitalise on emerging business opportunities
from within the fast-growing digital asset market.
The scope of the
work undertaken by Coinsilium includes advising LC Lite on its
project token economics (Tokenomics) ahead of its planned token
launch, slated for Q4 2024. Additionally, Coinsilium is
facilitating introductions for LC Lite to potential partners drawn
from Coinsilium’s extensive network of major service providers and
cryptocurrency firms. Advisory service terms pertaining to advisory
engagements are commercially sensitive and subject to mutual
confidentiality agreements. Typically, an agreement will
include a ‘sign on’ payment and a final success payment. The
success payment will usually be a fixed fee, denominated in
cryptocurrencies such as Bitcoin and Ethereum or in project digital
tokens and will be payable on the successful completion of a
project’s Token Generating Event (“TGE”).
Further information
on NEXADE is available in our Web3 report, available for download
from the Coinsilium Website:
https://coinsilium.com/investors/web3-reports
New Web3
Industry and Portfolio Reports
On 3 April 2024
Coinsilium announced the launch of a new series of Web3 industry
reports. These reports aim to provide investors with a greater
understanding of the emerging Web3 space, offering insights into
the applications, use cases, and the blockchain technology
underpinning it. The reports also feature some of the projects that
make up Coinsilium’s investment and advisory services portfolio.
To-date we have produced seven reports, all of which are available
for download from a dedicated section on the Coinsilium
website:
https://www.coinsilium.com/investors/web3-reports
Post Period Events
Strategic Web3
Collaboration with Liteflow
On 2 July 2024
Coinsilium announced that it had signed a Memorandum of
Understanding (“MoU”) with Liteflow, Inc (“Liteflow”), an
experienced Web3 and NFT technical developer. The MoU is the first
step in a planned long-term strategic collaboration between
Coinsilium and Liteflow, which aims to provide financial backing,
comprehensive advisory services, and cutting-edge technological
resources to help budding companies navigate the complexities of
the Web3 landscape and maximize their chances of long-term business
success.
SAFT to
acquire Otomato Web3 Automation Protocol Tokens
On 3 July 2024
Consilium announced that it had entered into a SAFT with the Otomato Web3
Automation Protocol. Otomato
is designed to simplify interactions with DeFi platforms through
automation and user-friendly interfaces. It can help bridge the gap
for DeFi traders without coding skills by automating complex tasks
and providing clear, intuitive guides.
Otomato.xyz
is the first
decentralised application of the Protocol and enables De-Fi traders
to create and automate their own Web3 trading strategies as a
succession of on-chain actions which can integrate reactions to
off-chain events. User control and security on the platform are
ensured through account abstraction (ERC-4337), making blockchain
automation accessible and efficient for all users.
Under the terms of
the SAFT, Coinsilium will receive USD75,000 in value of the future
tokens of the Otomato Web3 Automation Protocol in accordance with
the 'Early Backers' token allocation pricing and vesting terms.
Coinsilium also has the option to acquire an additional USD150,150
in value of the future tokens of the Otomato Web3 Automation
Protocol in accordance with the 'Strategic' token allocation
pricing and vesting terms. In addition, Coinsilium will earn 7.5%
of revenues generated by the Otomato.xyz platform up to the time of
the Token Listing Event, anticipated to occur during
2025.
Revenues will be
predominantly derived from affiliate fees from actions executed
through integrated protocols and fees from transactions initiated
via the Otomato.xyz platform. The public launch of the platform is
expected by Q4 2024, when revenues would be expected to
commence.
Further information
on Otomato is available in our Web3 report, available for download
from the Coinsilium Website:
https://coinsilium.com/investors/web3-reports
Elevate
Health
Elevate Health has progressed in
its transformation into a decentralised science (DeSci) project,
focusing on creating a platform that rewards members for
contributing and accessing data, research, and treatments in
preventative healthcare.
The project is currently in
discussions with a prominent, yet undisclosed, decentralised
launchpad, which has raised approximately $1 billion for various
token projects over the past three years. It is noteworthy that
DeSci-related tokens have shown strong post-launch performance
compared to other sectors.
Elevate Health has
advised Coinsilium that it is targeting a potential token issuance
by the end of 2024. Further updates will be provided to the market
as and when available.
Arcadian Youth
Pte Ltd (formerly "StartupToken")
StartupToken has
successfully transitioned its business model to focus on Web3 Real
World Asset ("RWA") tokenization, with an initial emphasis on the
Bali real estate market.
The company’s
flagship application, Propex, is now in the advanced stages
of development. Propex is designed to streamline the transaction of
real estate assets by bringing ownership transfers onto the
blockchain. This aims to automate and simplify the process for
property owners and their counterparties by tokenizing property
contracts into unique, programmable assets (NFTs). These NFTs can
be used for various Web3 applications, such as trading,
collateralized loans, and more. Propex offers real estate agents
and notaries a minting service to create on-chain proof of
ownership, while maintaining the existing system of record. The
blockchain-based records serve as tamper-proof, verified copies
that co-exist with the traditional system until full adoption of
on-chain processes. While the initial market focus is on Bali,
Indonesia, the Propex solution has potential applications in other
regions beyond this initial market.
The Arcadian Youth
team recently updated the Company, reporting that the first
development stage of the blockchain-based application has been
completed. In this initial phase, the application allows users to
mint ‘location NFTs,’ enabling them to participate in challenges
and earn points. The second stage will introduce the ability for
property owners to mint their real estate NFTs, with notary
verification, unlocking access to decentralised finance (DeFi) and
RWA exchange platforms.
Additionally, the team informed us
that their application for a grant from Lisk, a Layer 2 protocol on Ethereum and part of
the Optimism Superchain, was successful. Lisk is focused on
providing solutions for emerging markets through the tokenization
of RWAs, which aligns well with Propex’s goals.
We will continue to
update the market with news and developments regarding Propex as
the project progresses.
Director Share
Dealings
The following Trades
were transacted on market by Directors
Eddy
Travia
|
Date of Purchase
|
No Shares
|
Price
|
Beneficial Interest / %
|
|
9 July 2024
|
300,000
|
1.67p
|
|
|
12 August 2024
|
300,000
|
1.62p
|
|
|
|
|
|
14,756,702 - 6.79%
|
Malcolm
Palle
|
Date of Purchase
|
No Shares
|
Price
|
Beneficial Interest / %
|
|
9 July 2024
|
300,000
|
1.67p
|
|
|
12 August 2024
|
300,000
|
1.62p
|
|
|
|
|
|
13,634,234 - 6.27%
|
Issue of
Shares for Services
On 23 August 2024
Coinsilium announced it agreed to issue 600,000 new ordinary shares
of no-par value in the Company at an issue price of 2.5p per share
in lieu of fees incurred to the value of £15,000 (“Service
Shares”). Each Service Share has an attaching warrant to subscribe
for a further new ordinary share at an exercise price of 3.75p and
with a life to expiry of 3 years from Admission to trading of the
new Service Shares. The Service Shares and attaching one warrant
for one ordinary share were issued on the same terms as the
Company’s most recent financing, announced 8 March 2024.
Outlook
Bitcoin’s sharp rise
throughout the period in review, culminating in a new all-time high
prior to the May ‘halving’ event, diverged from historic cycles,
where such peaks are usually observed after the halving.
This early surge
fuelled a degree of overexuberance, which in turn contributed to
significant price fluctuations and heightened volatility post
period to date, albeit that Bitcoin is now trading at significantly
higher price levels than it was during the reporting
period.
The recent
volatility in the market has ultimately strengthened Bitcoin’s
position in the hands of longer-term holders, setting the stage for
a more resilient recovery, which we are now beginning to
witness.
The recent 50 basis
point interest rate cut by the US Federal Reserve, the first in
four years, combined with the expectation of increased market
liquidity, bolsters our confidence that a recovery in the crypto
markets is well underway. We anticipate this positive momentum to
continue through the remainder of the year, with 2025 expected to
bring even greater strength to the market which in turn should
create a more favourable environment for investment and growth
across the broader sector.
Coinsilium's efforts
over the past two years, to strategically position itself for this
anticipated positive market phase, are now starting to bear fruit.
During this period, we have focused on expanding and scaling our
advisory services capabilities, ensuring that we are
well-positioned to capitalise on the opportunities presented by the
expected bull market in the Web3 sector. Our structured approach
not only drives forward key strategic initiatives but also lays a
strong foundation for both short and medium-term value generation.
Most importantly, these efforts set the stage for sustained
long-term growth as we continue to leverage our expertise and
strategic positioning in this rapidly evolving market.
Anticipated
Yellow Token Launch and Listing in Q4 2024
A key catalyst for
Coinsilium, expected in Q4 2024, is the upcoming token launch and
listing of the Yellow token. As announced 21 April
2022, Coinsilium entered into a US$200,000 Simple Agreement for
Future Tokens (SAFT) in Yellow. Under the terms of the SAFT, Coinsilium will
receive USD200,000 in value of YELLOW tokens in this early funding
round, vesting over a period of time. The token launch will mark an
important liquidity event for the Company, signalling the fruition
of a long-term strategic investment.
Yellow Network
recently announced that it had secured $10 million in
funding, led by Ripple co-founder Chris Larsen. This
strategic investment
comes as Yellow’s market valuation reportedly reaches over US$200m,
positioning Yellow as a frontrunner in the DeFi trading revolution.
Other notable backers and supporters include Consensys, GSR, NxGen,
MV Global, Gate Labs, ZBS Capital, Moonrock Capital, Math, Cobo,
NOIA Capital, and LD Capital. This funding round also highlights
the growing confidence in Yellow Network’s potential to address key
inefficiencies in the decentralised finance (DeFi) space, such as
liquidity fragmentation and scalability.
With the launch of
the Yellow token, Coinsilium will stand to
benefit not only from a significant liquidity event but also from
the enhanced visibility and market traction Yellow is expected to
gain as a result of this strong backing. The
involvement of high-profile investors like Chris Larsen further
strengthens the case for Yellow’s long-term success, which aligns
well with Coinsilium's strategic vision.
Investors are
encouraged to monitor this event closely, as it not only validates
Coinsilium’s early-stage investment strategy but also presents a
promising opportunity for growth and value realisation.
Yellow is a highly
ambitious project, aiming to address key inefficiencies in the DeFi
space. Should Yellow meet its objectives, it has the potential to
become a key player in the decentralised clearing space, backed by
strong investment, experienced partners, and a clear
vision.
Further information
on Yellow is available in our Web3 report, available for download
from the Coinsilium Website:
https://coinsilium.com/investors/web3-reports
Strategic
Partnership with Liteflow Driving Web3 Innovation
Following the
announcement of the Memorandum of Understanding (MoU) with Liteflow
on 2nd July 2024, we are pleased to report that this strategic
collaboration is already showing significant promise. The
initiative, which offers US$1 million in dedicated seed funding for
early-stage Web3 startups, has attracted strong interest from
high-quality applicants within DeFi, GameFi, and SocialFi sectors.
The creation of an Investment Committee as part of the process,
composed of both companies and certain pre-approved co-investors,
further strengthens this initiative, by ensuring a rigorous
procedure for the assessment and selection of projects.
The initiative also
integrates Coinsilium’s advisory services as a key part of the same
offering. This means that, in addition to investment opportunities,
we are able to provide fee-generating advisory
services to promising projects, even when we do not make direct
investments. The combination of financial backing and strategic
advisory capabilities strengthens our ability to support
high-potential startups in the Web3 space, while also creating a
significant revenue stream for the Company.
The first Web3 Start-Up Pitch Day,
held on 30 July 2024, attracted a strong pool of high-quality
projects, reflecting a strong interest in the
initiative.
These pitch days are designed to vet projects from both an
investment and advisory perspective, allowing us to be selective in
the clients we work with. As we look forward to the next pitch day
on 2 October 2024, we are confident this initiative will provide us
with a strong pipeline of high-potential startup candidates for
both investment and advisory services.
This collaboration
with Liteflow strengthens our position in the Web3 market and
underpins the long-term growth prospects of our advisory services
division, which is expected to play a key role in driving
Coinsilium’s future revenue streams.
Otomato: A
High-Potential, Fast-Accelerating Project with Near-Term Growth
Catalysts
Coinsilium’s recent
investment in Otomato, secured via a SAFT, marks a pivotal entry
into the rapidly growing Web3 automation space. Otomato's platform
is designed to simplify blockchain development for decentralized
finance (DeFi) traders by allowing them to automate on-chain
actions in response to off-chain events. This innovation addresses
a critical need in the DeFi sector for accessible, automated
strategies and has garnered substantial interest from the industry,
signalling significant potential for rapid growth.
Coinsilium holds a
$75,000 stake in Otomato, with an option to acquire an additional
$150,000 in future tokens, making it a key early-stage backer of
this promising project. More importantly, Coinsilium is set to
benefit from 7.5% of Otomato.xyz's revenues from launch until the
Token Listing Event, expected in 2025. As revenues are anticipated
to begin when the platform goes live in Q4 2024, this represents a
near-term catalyst for Coinsilium’s growth, providing a direct
avenue for early-stage revenue generation.
Otomato is on an
accelerated development timeline, with its public launch slated for
Q4 2024. These will pave the way for Otomato to start generating
affiliate and transaction fees as early as this year. The project
is gaining considerable industry traction, as demonstrated by its
participation in the MODE Yield Accelerator and the strong
engagement of early testers during the beta phase. With over 2,150
followers and an active community, the platform is poised to
rapidly expand its user base and establish a foothold in the
burgeoning DeFi market.
Given the strong
interest from the DeFi sector and the speed of Otomato’s
development, Coinsilium is optimistic about its potential for
significant long-term value creation. The upcoming platform launch,
and the eventual Token Listing Event will be critical milestones,
and we look forward to providing regular updates as Otomato
continues its fast-paced growth. Shareholders are encouraged to
follow Otomato closely, since the project is advancing more quickly
than expected, driven by high levels of interest from the DeFi
community.
Further information
on Otomato is available in our Web3 report, available for download
from the Coinsilium Website:
https://coinsilium.com/investors/web3-reports
As we move into what looks to be a
more favourable and positive environment for the cryptocurrency
market, there is much to look forward to for Coinsilium and its
shareholders. With Bitcoin’s strengthening market position and the
expectation of further liquidity entering the market, the
conditions are aligning for significant opportunities across the
broader blockchain and Web3 sectors.
Coinsilium is now
well-positioned to capitalise on these opportunities, thanks to the
work undertaken over the last two years to strategically build and
expand our investment and advisory operations. Our efforts have
ensured that we are prepared to leverage the upcoming bull market,
with our projects and partnerships fully aligned to drive growth.
We are confident that this groundwork sets the stage for both short
and medium term value generation while laying the foundation for
sustained long-term growth.
Finally, the Board would like to
express its sincere gratitude to our valued shareholders, partners,
and team members for their continued support. With signs of
favourable market conditions persisting, evidenced by the continual
improvement in cryptocurrency markets, we are optimistic about the
opportunities ahead. We look forward to providing the market with
regular updates on the ongoing developments and news from our
existing portfolio of investments and advisory projects, which we
believe will demonstrate significant progress throughout the
remainder of the year and into 2025.
Financial
Review
In the period under
review revenue for the six months ended 30 June 2024 was £3,000
compared to £56,417 for the six months ended 30 June
2023.
The Company
generated a profit for the six months ended 30 June 2024 from
continuing operations of £29,545, which was compared to a
loss of £104,247 for the six months ended 30 June 2023.
The earnings per
share was a profit of 0.01 pence for the six months ended 30 June
2024 which was compared to a loss of 0.06 pence per share for the
six months ended 30 June 2023.
The financial assets
at fair value through profit or loss increased to £2.5m at 30 June
2024 compared with £2.16m at 31 December 2023. The fair value
increase in the period has been predominantly driven by an increase
in the assessed fair value of the Group’s investment in Coindash
(see above for an update on the investee company
project).
The total other
current assets, which is a combination of cryptocurrencies, tokens,
and the right to receive tokens at a future date, amounted to
£1,061,520 at 30 June 2024, which was an increase from £966,716 on
31 December 2023.
Cash and cash
equivalents amounted to £429,581 as at 30 June 2024, compared to
£283,757 as at 31 December 2023.
Malcolm
Palle
Executive
Chairman