TOKEN VALUE
1. The Accounting Blockchain (TAB)
Market Size:
Trillions of B2B and B2C of global transactions yearly. Multiplied by 2, as most of these are currently duplicated due to isolated accounting systems — TAB is about to solve this.
Market Penetration:
Gradual at first due to cultural shift in the way things are done. Exponential increase as more people connect as the solution provides savings for all parties involved.
Widespread token offering is part of the strategy to catalyze and incentivize the use of the blockchain due to significantly reduced price of tokens.
The widespread adoption of TAB is aided by first mover advantage as it is essentially the first to provide a trusted common ground whereby all parties are saving money by using it.
APIs aided by artificial intelligence that connect the different existing accounting packages seamlessly to TAB making life easy for both the existing accounting software firms and businesses, thus making TAB the place to go to connect to the future rather than to remain in isolation.
TAB is not competing with competitors but rather connecting them and saving them money.
Strengths and Weaknesses, Opportunities and Threats:
A one-time opportunity provided by a widespread token offering which will propel the adoption and use of TAB. The dire need for real world blockchain accounting connection and the absence of a trusted common ground between accounting software platforms is a gap in the market that TAB fills in perfectly.
TAB is not competing with competitors but rather connecting them and saving them money, providing a fast and easy way into blockchain adoption.
Threats include the transitory period whereby businesses need to learn about the advantages that blockchain accounting offers, advocating the need for a global educational campaign. AB has a clear business plan that makes this period as short as possible and includes the widespread discounted token offering as part of this strategy and the introduction of two other platforms that boost the adoption and demand for the AB token during this period.
Once TAB goes through the early adoption phase and into the stages of general adoption by medium sized businesses and large corporations, the demand and load on TAB is expected to increase exponentially in the same pattern of adoption of social media due to intrinsic nature of connecting businesses.
How will TAB be able to handle such growth? How scalable is it? And the answer to this intrinsic in the very way TAB is designed with a ground-breaking Hyperledger fabric solution that enables TAB to scale up unlimitedly and handle the growth needed for the trillions of transactions that link the global supply chain.
Unique Proposition at the right timing, and barriers to entry
The blockchain being developed by Accounting Blockchain will be the first ever blockchain dedicated for triple entry accounting and to solve this multibillion-dollar problem.
Being the early introducers in this class is a unique advantage. Why? Businesses would only join a blockchain if they will be able to be connected with their customers and suppliers. Any other blockchain which will come after Accounting Blockchain will need to convince businesses to get disconnected from a global network and join a network with limited connections. Which business would decide to join a different blockchain only to be disconnected and lose all the benefits of being connected in The Accounting Blockchain?
Token Demand: Studies show that adoption of such a game changing technology follows an exponential pattern. This means that the use of TAB may be, perhaps in an over simplistic manner, classified into three stages:
- Early adoption
- Market penetration
- Widespread adoption
AB have decided to base projections on conservative values based on small fractions of the market size of global B2B and B2C transactions (less than 1%), especially for the first few years, as an educational campaign and a marketing campaign needs to kick in to show traditional and ongoing businesses the advantages of integrating TAB in their business practice will provide. Having said this, once the benefits are known to a user and starts saving his and his supplier’s money, the growth of the use of TAB would take an exponential form.
2. AB Fingertips Suite
Market Size:
Millions of businesses globally are looking or will be looking for a solution to integrate their current business operations to blockchain and be able to integrate cryptocurrency in their day to day operations, benefit from the use of blockchain smart contracts, and be able to record their sensitive data into the security and immutability of blockchain. Businesses are starting and will increasingly look to turn their accounting system from an isolated record keeping software to a platform that handles their smart contracts, invoices, triple entry accounting, and payments in real time. This is the future of accounting and AB Fingertips Suite is ushering in just that.
Market Penetration:
The gap in the market for a platform that integrates blockchain advantages into day to day running of business provides AB Fingertips Suite a unique opportunity.
AB Fingertips Suite has the major advantage of being built with blockchain accounting in mind, unlike any other existing accounting software that has to adapt to blockchain through patches in the software but will never be intrinsically a blockchain focused software.
Strengths and Weaknesses, Opportunities and Threats:
AB Fingertips Suite is uniquely positioned to provide a simple and easy access to the much needed blockchain advantages to everyday business. It is being built around blockchain and triple entry accounting, not adapting to it.
The adoption of blockchain accounting into everyday business in still in its early stages, some have argued in AB focus groups that introduction of such a software is a bit to early. However, AB believe that being at a very early stage in the market gives AB Fingertips Suite the opportunity to grow with the market and be right there when wide spread adoption of blockchain in accounting takes place.
Token Demand:
Considering we are still in the early adoption phase of blockchain into traditional businesses, AB has forecast a conservative but steady growth for 2019–2021 and a faster market penetration for the years after, which is forecasted to see a widespread adoption of blockchain accounting.
3. AB Taxavance
Market Size:
Number of crypto traders and users and growing exponentially. From 2013 to 2017 the number of active wallets has grown from 1.6m to 8.7m *. The rate of growth of the market is bigger every year. At the same time, regulation and enforcement on the taxation implications of using cryptocurrency and resulting capital gains/losses is increasingly becoming a major headache to cryptocurrency wallet users and traders. The large number of trades and exchanges involved makes the task of giving an accountant the job of filing taxes on crypto tedious and thus very expensive.
*Market data from: Hileman, G. and Rauchs, M. (2017). University of Cambridge. 2017 Global Cryptocurrency Benchmarking Study. SSRN Electronic Journal.
Market Penetration:
A 1% market penetration is already 87,000 customers (2017 data) and AB envisages conservatively a growth of market share from 0.5% to 6% from late 2018 to 2022. Active wallets are mostly in North America and Europe, with 30% and 31% of total respectively, with Asia-Pacific at 20%, Latin America 13%, and Africa — Middle East 6%.
The strategy will be to start from Europe and expand to the rest of the world in stages. Tax accountants doing the job of compiling such transactions can prove to be super expensive, and online platforms charge from 49 USD to over 1,000 USD yearly depending on number of transactions. AB token holders will gain access to a global service through AB Taxavance, which will be possible for AB to deliver in a much more efficient and low cost way due to its tokenomics and due to the large community of users gained by the initial token offering process.
Strengths and Weaknesses, Opportunities and Threats:
Global system, through a growing network. This is necessary due to the fast-changing regulations globally in the sector which is a major challenge for crypto traders worldwide.
Again, some might argue introduction of this service might be too early, but feedback from the community shows that such a service is needed now more than ever, and in the mid to long term future the use of AB Taxavance will be a life saver and a way out from the super-expensive accountant and tax advisor bills.
Token Demand:
AB Taxavance has the advantage of being one of the first introducers of such a complete global service, and the timing of its introduction is spot on due to increasing regulation in the cryptocurrency world. Basically, any serious user of crypto currency needs such as service so demand grows as the widespread adoption of crypto assets grows. AB is being conservative in forecasting market share in this sector, and even though these forecasts verge on too conservative, this still generates a very satisfactory demand for the AB Token.
Total Token Demand and Supply for AB Tokens:
Due to the limited supply of AB Tokens, the value of AB Tokens will be determined by supply and demand forces.
AB Tokenomics have been designed in collaboration with E&S, a renowned accounting firm specialising in ICOs and tokenomics with the aim of creating and efficient token ecosystem that gives the best value to the initial token offering contributors. This goes in line with our policy of having the AB token spread as much as possible in the initial token offering as part of the strategy to kickstart the platforms and place AB as a leader in the sector.
Securing tokens during ICO stage puts the token holder in a unique position to be the first to be to hold tokens in the future of Accounting and benefit from the potential AB Tokens hold.
The tokenomics in place mean that when the demand for AB Tokens is bigger than the supply, the value increases. The bigger the distance between the demand and the supply, the bigger the movement in the value of AB Tokens.
There are 3 separate demands for AB Token from different types of users. Thus, rather than relying on the success of just one product, there are three initial streams of demand for the token. Subsequently, AB is planning the addition of more accounting blockchain solutions which will further augment the demand for the token.
AB is looking towards a short, medium and long term strategy of steady growth and increase in the relevance of its solutions in the accounting and business world, with the ultimate strategy of making the present isolated accounting system obsolete.
Disclaimer:
This page contains forward-looking statements, including statements relating to AB’s operations, financial results, business and products. Other statements on this page, including words such as “anticipate,” “may,” “believe,” “could,” “should,” “estimate,” “expect,” “intend,” “plan,” “predict,” “potential,” “forecasts,” “project,” and other similar expressions, also are forward-looking statements. Forward-looking statements are made based upon management’s current expectations and beliefs concerning future developments and their potential effects on AB. Such forward-looking statements are not guarantees of future performance. The risk factors described in the Token Offer Agreement, the terms and conditions page and elsewhere within theaccountingblockchain.io, could affect AB’s actual results and could cause such results to differ materially from estimates or expectations reflected in such forward-looking statements.
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