Beruflich Dokumente
Kultur Dokumente
AT
Exvillage Software Systems Privet Limited
SUBMITTED TO BANGALORE UNIVERSITY IN PARTIAL
FULFILLMENT OF THE
SUBMITED BY
KARISHMA G H
USN-171GCMD059
R. V. INSTITUTE OF MANAGEMENT
CA 17, 36th Cross, 26th Main, 4th “T” Block, Jayanagar, Bangalore - 560041.
2018-2019
Executive Summary:
The financial services industry plays a vital intermediary role in the world
economy as it moves money from entities with excess funds to those with a need for
funds. It includes firms that are engaged in activities such as investing, lending,
insurance, securities trading, and securities issuance. Its clients are individuals,
businesses, non profit organizations, and agencies of government. The industry as a
whole encompasses and integrates numerous components and services in interlocking
and co-dependent parts. Bank deposits provide the capital for bank loans. The sale of
stocks and bonds to investors supports the operations of businesses and governments
who issue those stocks and bonds. Insurance contracts help to pool and manage risks.
Banking
Insurance
Securities brokerage or financial advisory services
Investment banking
Securities trading
Investment management or money management
Securities analysis
Financial planning
Wall Street
India has a diversified financial sector undergoing rapid expansion, both in terms
of strong growth of existing financial services firms and new entities entering the
market. The sector comprises commercial banks, insurance companies, non-banking
financial companies, co-operatives, pension funds, mutual funds and other smaller
financial entities. The banking regulator has allowed new entities such as payments
banks to be created recently thereby adding to the types of entities operating in the
sector. However, the financial sector in India is predominantly a banking sector with
commercial banks accounting for more than 64 per cent of the total assets held by the
financial system.
1.1.2 Investments/Developments:
Global payments solution giant MasterCard has launched its first technology
lab in Pune, which will enable India to move towards digital economy and
financial inclusion.
Four metro cities Delhi, Mumbai, Bangalore and Chennai can reap benefits of
US$ 7.2 billion annually by increasing payments through digital means.
Bank Bazaar, a financial marketplace start-up in India, raised US$ 30 million
in a funding round led by Experian Plc, a credit rating agency based in UK,
taking the company's total funding to US$ 110 million.
Private equity (PE) investments in India increased 59 per cent to US$ 24.4
billion in 2017, with average deal size of US$ 42.8 million, according to data
provided by Venture Intelligence.
Private equity and venture capital firms recorded investments worth US$ 7.9
billion with 180 deals during January-March 2018.
In May 2018, total equity funding’s of microfinance sector grew at the rate of
39.88 to Rs 96.31 billion (Rs 4.49 billion) in 2017-2018 from Rs 68.85 billion
(US$ 1.03 billion).
Along with the secondary market, the market for Initial Public offers (IPos)
has also witnessed rapid expansion. The total amount of Initial Public
offerings increased to Rs 84,357 crore (US$ 13,089 million) by the end of
FY18.
over the past few years India has witnessed a huge increase in Mergers and
Acquisition (M&A) activity. The total value of M&A in India rose 53.3 per
cent year-on-year to US$ 77.6 billion in 2017 from US$ 50.6 billion in the
preceding year.
Furthermore, India’s leading bourse Bombay Stock Exchange (BSE) will set
up a joint venture with Ebix Inc to build a robust insurance distribution
network in the country through a new distribution exchange platform.
1.1.5 Trade:
Trade is a basic economic concept involving the buying and selling of goods
and services, with compensation paid by a buyer to a seller, or the exchange of goods
or services between parties. The most common medium of exchange for these
transactions is money, but trade may also be executed with the exchange of goods or
services between both parties, referred to as a barter, or payment with virtual
currency, the most popular of which is bitcoin. In financial markets, trading refers to
the buying and selling of securities, such as the purchase of stock on the floor of
the New York Stock Exchange (NYSE).
Barter Transactions:
Cashless trades involving the exchange of goods or services between
parties are referred to as barter transactions. While barter is often associated
with primitive or undeveloped societies, these transactions are also used by
large corporations and individuals as a means of gaining goods in exchange
for excess, underutilized or unwanted assets. For example, in the 1970s,
PepsiCo Inc. set up a barter agreement with the Russian government to trade
cola syrup for Stolichnaya vodka. In 1990, the deal was expanded to $3 billion
dollars and included 10 Russian-built ships, which PepsiCo leased or sold in
the years following the agreement.
Virtual Currencies:
As the newest medium of exchange, virtual currencies do not expose
holders to foreign exchange risks, provide anonymity between trading partners
if desired and avoid the often-significant processing fee for credit cards. The
most popular virtual currency is Bitcoin, which was introduced in 2009.
Bitcoin are held in virtual wallets and can be used with a growing number of
web-based merchants, including WordPress.com, overstock.com and okCupid.
Additionally some online retailers supporting individual merchants (such as
Etsy) provide those merchants means to conduct their transactions using
virtual currencies. There are also platforms for converting virtual currencies
into gift cards. Virtual currencies are often popular with small businesses, due
in part to the lack of processing fees.
Crypto Trading:
This type of trading involves exchanging one crypto currency for
another, buying and selling
coins, and exchanging fiat money into crypto.It bears some similarities to
foreign exchange (forex), where fiat currencies from across the globe are
traded 24 hours a day.The number of cryptocurrencies has exploded in recent
years – and estimates suggest there are now more than 1,500 in existence.
Many of these coins can only be acquired using a major cryptocurrency
such as Bitcoin or Ethereum. Because of this, you’ll likely need to perform
trades if you want to contribute to initial coin offerings (ICO,) or use a
blockchain company’s services.
As the number of cryptocurrencies doubled, the ICO market also saw equal
activity growth levels. For 382 ICO’s , $6B was raised over the course of the year .As
the Bitcoin and other cryptocurrencies became popular, the ICO market had become
evidence that investors have become willing to allocate more capital into this new
asset .
Buy the underlying: It is meant, holding the actual currency in a wallet at the
exchange from an exchange or crypto currency broker . By buying the
underlying you become the direct holder of the digital asset. Upon purchase
the cryptocurrency is sent to your address or wallet with the exchange, further
you can transfer the cryptocurrency to any wallet address using your private
key that verifies your control ownership of the asset.
The issue with the responsibility to safeguard your private key which controls
the digital asset also comes with additional risks .
Advantages:
Most versatile option i.e it can be transferred, sold, exchanged and also
converted.
No third party required when the private key is held in cold storage
offline.
Disadvantages:
Your cash margin can have more buying power because greater degree
of leverage is usually offered on derivatives.
Disadvantages:
When the broker finds fault in the system or if it finds a client violates
their particular account agreement then trades may be cancelled or
reversed in the event .
If the broker goes bankruptcy, investors may suffer losses and not
receive priority among creditors.
Advantages:
Disadvantages:
As the price of the security and the price of the underlying asset may
vary , causing error in tracking.
Trading facilities are not available for 24hours but can only be tradable
during exchange.
Bid spreads and other fees may be different than the cost of buying the
underlying directly.
Financial Services:
As the name suggests financial services are the services provided by the
Financial Institutions. These services generally include the banking services, Foreign
exchange services, investment services, insurance services, advisory services, venture
capital, angel investment etc.
Financial Intermediaries/Institutions:
Financial Instrument:
The types of financial instrument used worldwide are in the form deposits, stock, and
debt.
Financial Market:
Financial Market is a mechanism that allows people to indulge themselves in
the buying and selling i.e. trade of financial securities (for example stocks and bonds),
commodities (for example precious metals) at prices that reflect the market’s
effectiveness.
1.1.8 Major players in the crypto trading industry with the market
share information:
Market Size: Finding and estimating the exact size of the market is difficult
of any industry, particularly the cryptocurrency industry due to rapid and huge
volatility in prices over short span of time.
By the date of February 28, 2018, the market capital settled down at $447.9B
According to the research , Jesse Powell, founder and CEO of Kraken said that
the cryptocurrency market would continue to see an “acceleration” of growth
and he agreed that cryptocurrency industry would hit the $1trillion mark in
2018.
Total market capital:
Binance
IDEX Membership:
openLedger DEX
Market capital : $315,245 USD
43.28 BTC
CryptoBridge
1.1.9 Competition :
Ease of use. DEXs often have a steep learning curve and can be difficult
for newbies to understand. Take a look at each exchange’s trading interface
to see how easy it will be to use.
Security features. Check for any additional security features the platform
offers to help protect your funds. For example, some platforms allow you to
directly link your hardware wallet to the trading contract.
Currencies available. Which coins and tokens can you trade on the
platform? Are all your desired currencies supported, and how/when are new
coins and tokens listed?
Trading volume. How much trading volume does the platform currently
maintain? Is there enough liquidity to support your trading needs?
Transaction fees. Check the fine print for details of the platform’s trading
fees and any other charges that may apply to transactions.
Sign-up process. How quick and easy is it to register for an account? What
details do you need to provide?
User reviews. one way to get a better feel for the quality of an exchange is
to check out some independent reviews. This will help you find out what
sort of experience other users have had on the platform and whether they’ve
had any problems or concerns.
1.1.10 Michael Porter’s 5 Forces Model:
This theory is based on the concept that there are Five forces that
determine the competitive intensity and attractiveness of the market. Porter’s
five forces help to identify where power lies in a business situation. It is useful
both in understanding the strength of an organization , current competitive
position and the strength of a position that an organisation may look to move
into.
Threat of substitutes:
Where close substitute products exist in a market, it increases
the likelihood of customers switching to alternatives in response to
price increases. This reduces both the power of suppliers and the
attractiveness of the market.
Degree of rivalry:
The main driver is the number and capability of competitors in
the market. Many competitors, offering undifferentiated products and
services, will reduce market attractiveness.
MoonX was conceived with the purpose of turning around traditional for-
profit, centralised exchanges who made money from the end users through a
revolutionary Coin mechanism with zero commission fees for users and community
members.
The brand is about creating a decentralized economy by not charging fees but
providing members with Moon Money equivalent to shares within the company. It is
mainly doing away with employer-employee and customer-business owner
relationships to create a more peer-to-peer, equal relationship, offering our co-owners
the fastest and most secure exchange technology verified by independent third-party
experts
The exchange's vision addresses other gaps in the current crypto trading
landscape by using more evolved technologies compared to those of traditional stocks
and futures exchanges, including providing a more open and trustworthy platform to
facilitate crypto asset transactions and liquidity, 24/7 support, and financial products
such as margin trading, futures, and other derivatives.
Vision :
Mission:
“Bridge the gaps in the distribution of wealth and the potential to bring
advanced technology to serve the crypto community”.
Objectives:
At the end, our aim is to integrate all companies, employees, and business
assets into a unified blockchain ecosystem, which will make business truly
efficient, transparent, and reliable.
Values:
Decentralized ownership
Fastest throughput.
While existing solutions offer to solve just one problem at a time, the MoonX family
is up to build a highly secure, useful, & easy-to-use product based on private
blockchain. It will include easy cryptocurrency payments integration and even a
digital arbitration syste
Organisation Structure:
Operations and Businesses, Product and Services Profile:
Operations :
MoonX - World's First Collective Ownership Exchange Raises US$ 27M in a Flash
unique features:
Performance of MOONX :
ICO Announcement:
Coin Allocation :
30% : coins would be distributed in 8 years, detailed coin mining plan would
be released in the MoonX technical whitepaper.
20% : coins are held by early sponsors and strategic investors. MoonX sets
very selective standards on early sponsors and investors.
20% : Family executives are the executive team who are the early founders
and serve the team
10% : Allocated for marketing and operations of the Moon ecosystem.
10% : Ecosystem fund invested in the form of FOF and it avoids direct
investment to set MoonX as a purely independent platform and supports a
good crypto project to grow the Moon ecosystem in the long run
10% : Moon cyrrency fund acts as a central bank, whose major role is to
stabilize the price growth of Moon Money and sets currency regulations to
make Moon Money sustainable in the long run.
Future plans:
SWOT Analysis:
Strengths:
Weakness:
Increase customer size
Exploring various marketing strategies
Unregulated industry.
Ever increasing transaction costs as more transactions enter blockchain.
Opportunities :
Alternative to collapsed currencies.
Use in isolated economies.
Mass – adoption as a currecy or asset
Long term industry application
Extensive use in disruptive technology
Replacing fiat currency, use as a single global currency
Threats :
The McKinsey 7-S model can be applied to elements of a team or a project as well.
The alignment issues apply, regardless of how you decide to define the scope of the
areas you study.
The McKinsey 7-S model involves seven interdependent factors which are
categorized as either "hard" or "soft" elements:
"Hard" elements are easier to define or identify and management can directly
influence them: These are strategy statements; organization charts and reporting lines;
and formal processes and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are
less tangible and more influenced by culture. However, these soft elements are as
important as the hard elements if the organization is going to be successful.
Shared Values : Core values, culture of the company and how the business
is carried on.
Democratic leadership.
Directors
CTO
Fishbone Model:
The Fishbone model is also called as Cause and Effect Diagram, Fishbone
Diagram, Ishikawa Diagram, Herringbone Diagram, and Fishikawa Diagrams.
Fishbone Diagram
About 60% of ICO fail at the initial stage because their services or
products does not have any value and demand in the market. So, it is very
important that before you launch and announce an ICO, make sure that it has
an audience who has need of your offering. Most of the ICOs today requires
selling token to raise the capital. For such ICOs it is important that their ICOs
have caught up the SEC and related regular bodies soon to protect themselves
from long-term failure.
Additionally, it is very important the people who are launching the
ICOs should have a defined market which is completely aware of the project, it
is also imperative to build trust and reputation to make your ICO successful.
People are not brand conscious. They invest in a project which sounds
good forgetting it should look good too. This includes every element of
websites like content, logo, visuals, fonts, ICO white paper, and selection of
colors etc. The people will question your brand if they find your website
unprofessional.
ICO is not just about your idea but also the marketing and branding.
The face of your offering is your brand, that’s why it is very important that you
spend quality time to create the brand identity as it will lead to many other
communication and marketing aspects in the future.
The unrealistic budgets and objectives of the new business always put
the business in difficulties. The higher you set your objectives, the more budget
you will need to achieve those objectives and so is the need to spend on the
marketing, PR, development, design, and content. So, to avoid this, make sure
that the objectives of your offering should match the scope of your project.
Before going to the public sale, it is ideal to conduct a private sale first if your
team is small for an ICO.
Reddit: There are many channels that are very popular with the cypto
community. A high level of exposure can be achieved through the creation of
subreddits or simply by commenting on existing threads. Many crypto
subreddits require a minimum account age and karma, so be sure to become
active well before you launch your ICO.
Bounty Program:
ICO Listings
` Getting your ICO on specific sites which list ICO’s are great for pre-
ICO coverage and exposure.
Transparency
Put simply, if your offer isn’t transparent, it could act as a repellent
towards potential investors. People want to know exactly what they are buying
into, as well as know the people behind the product. A lack of transparency
will reduce interest and negatively affect the amount of money you are able to
raise.
Compliance
Compliance is an area that is becoming increasingly important for
ICOs in 2018 and beyond. Rules and regulations are being put in place which
will need to be adhered to. Although still considered to be a grey area in many
countries, implementing a compliant process, as per the SEC guidelines, from
the very beginning can only help your long-term ICO strategy.