Contents What is KEWI? What is cryptocurrency? Why invest in cryptocurrency? KEWI fact file Why choose KEWI? Who should invest Portfolio management What are the fees CCO timeline Who we are AUM milestones How to participate 2 3 4 5 6 7 8 9 9 10 11 11
KEWI is an equal-weight index fund in the model of traditional equity indices such as Standard & Poor 500 (S&P 500) and Dow Jones Industrial Average (DJIA). What is KEWI? It is 100% backed by the 20 largest cryptocurrencies by market capitalisation, covering more than 80% of the cryptocurrency market. KEWI: is a safe and easy option for you to gain exposure in the growing cryptocurrency market. diversifies your risk. is tradeable on selected reputable cryptocurrency exchanges. can easily be redeemed for an equivalent Ethereum (ETH) amount. Our Continuous Coin Offering offers you 1 KEWI for every 1 USD you invest. 2
What is cryptocurrency? Cryptocurrency is a virtual currency that uses cryptography to secure accounts and prevent counterfeiting. The currency has no physical form and is not issued by an authority like a central bank. Instead, it consists of a decentralised network of peers, with every transaction they make stored and verified in a complex shared database known as the blockchain. How it works 1 2 Someone requests a transaction, which is broadcast to the peer-topeer network. A network of nodes validates the transaction request. 4 3 The transaction is done. Miners confirm the transaction request. 3
Why invest in cryptocurrency? Cryptocurrency is one of the fastest growing asset classes in the world. Worth USD 11.5 billion in September 2016, the market ballooned to over USD 166.8 billion by September 2017 a 1,350% increase. Cryptocurrency may one day replace fiat currencies entirely. Investing in KEWI is an easy and efficient way to gain exposure across the entire cryptocurrency market, and grow your wealth through diversified investment. FAST Transactions are processed in minutes, all day, every day. GLOBAL Enables you to transfer funds anywhere in the world. SECURE The blockchain is difficult to tamper with due to maintenance by a global network. LOW COST Zero third-party interference or charges ensure low transfer fees. PRIVATE Encrypted accounts that are unconnected to your real-world identity. TRANSPARENT 100% transparent transactions, viewable by all parties in the network. IMMUTABLE Validated transactions within a blockchain become increasingly difficult to tamper with each subsequent confirmation. PERMISSION-LESS Anyone with a computer has the potential to use cryptocurrency. 4
KEWI Fact File 5
Why choose KEWI? 1. It diversifies your risk KEWI enables you to invest in a diversified portfolio of cryptocurrencies. While market-weighted indexing allocates more than 75% of a portfolio to the two largest currencies by market capitalisation, KEWI s equal weighted indexing offers you broad exposure to the entire market. This means you benefit from the growth of any of the top 20 currencies. If a currency drops in price for any reason, the diversified nature of KEWI minimises the impact on your investment and enables us to rebalance your portfolio to maintain a healthy growth rate. 6
2. It is more likely to increase in value Research suggests that individual stock pickers consistently underperform market indices. Instead of picking individual winners, KEWI offers you a simple way to capitalise on the exponential growth of the entire cryptocurrency space. x y 3. It is 100% asset backed by our selected cryptocurrencies KEWI is 100% backed by the 20 largest cryptocurrencies by market capitalisation, covering more than 80% of the market. 4. It is tradeable and redeemable KEWI is an ETH-based token of value, a digital asset representing ownership of the underlying 20 cryptocurrencies used to back it. It can be traded on a liquid crypto exchange or redeemed for the equivalent amount of ETH from us. Who should invest Looking to grow your wealth in the booming cryptocurrencies space? KEWI is ideal if you prefer broad-based exposure, or wish to spread your risk through a diversified portfolio. Cryptocurrencies are known to be volatile, and higher returns correlate with higher risks. If you are a new investor, KEWI is an easy and efficient way to invest in this growing market. 7
Portfolio management How we select the best currencies for you How we balance your portfolio Continuity We maintain the continuity of KEWI with a strict selection process. The cryptocurrency needs to have: an average daily trading volume of at least USD1 million. an average monthly trading volume of at least USD 100 million. been traded on at least one exchange with sufficient volume. Continuity To maintain the diversity and growth potential of your portfolio, we will monitor its assets closely and follow a robust rebalancing process. This process is completed gradually to prevent front-running (an exploitative tactic where users try to jump the line to complete a transaction at a higher or lower price). Exclusions We exclude stable coins with their own price stability characteristics, plus coins that are themselves a basket of other cryptocurrencies such as TetherUSD, Maker Sai/Dai and Digix DGX. Excluded tokens are replaced with the next cryptocurrencies in the market capitalisation ranking. Equal weighting Our algorithm gives the top 20 cryptocurrencies with the highest market capitalisation equal weighting. Any rounding excess will be allocated to BTC. To improve the likelihood of value increase, we rebalance the portfolio regularly. If a currency falls out of the top 20, we will maintain its position until the next rebalancing. Here s how it works: Rebalancing is capped at 1% of portfolio capitalisation and is adjusted according to portfolio size and market conditions. For example, with a 100 BTC portfolio, only 1 BTC would be sold per currency pair. Crypto-pairs are only rebalanced if the price movement exceeds the allocation band (currently +/- 4%). This is checked daily. A limit order will be used to allow us to specify the trade cost. If a currency falls out of the top 20, it will be sold gradually and replaced with another token. This usually takes 4 days, but please note it may take longer if the market is illiquid. If an order fails to be executed for any reason, the rebalancing process will be delayed until the next period. 8
What are the fees? We have a transparent and simple fee structure. CCO timeline 9
Who we are Kryptos Associates Pte Ltd is a Singapore-registered private limited company. Our vision is to continually provide world-class financial solutions that enable you to invest in cryptocurrencies safely, efficiently and profitably. Our team Zhuang Sheng Quan Co-Founder & CEO Sheng Quan s passion for finance and machine learning technologies led him first to the University of Pennsylvania, where he graduated with a dual bachelor s degree in Economics and Computer Science, and then Princeton University, where he obtained his Master s degree in Finance. Sheng Quan traded currencies and interest rate products for a local bank before pursuing research in data science at Singapore s Nanyang Technology University. In recent years, he has discovered the immense potential of cryptocurrencies, and dreamed up the concept for Kryptos Associates to help investors access the space safely and efficiently. Zheng Junyi Co-Founder & CTO Junyi began mining his first Bitcoins in 2010, and has been a keen follower of the crypto-sphere ever since. He has a Master s degree in Infocomm Security from the National University of Singapore, as well as seven years experience vetting and developing cryptographic solutions in areas such as cluster management, largescale software development and hardware acceleration. From block explorers and web miners to web wallets and mining pools, Junyi has built and deployed a wide range of crypto backend services for various coins. In 2017, he wrote, tested and deployed a successful crowd sale contract for a token ICO to raise over USD2 million. Drawing on his vast experience and in-depth knowledge of different cryptocurrencies, Junyi plans to develop a secure suite of solutions at Kryptos to give you easy access to the crypto revolution. 10
Assets Under Management (AUM) milestones +USD10 million Set up regulated fund structure with relevant licenses, and full-fledged fund administration services such as accounting, auditing, banking and know-yourcustomer (KYC). +USD50 million Scale out in-house team with CEO, CTO, COO, a chief scientist, data scientist and two software engineers, and launch new index funds (e.g. crypto small-cap growth focused fund, ERC20 equal weighted fund, crypto momentum fund). +USD250 million Scale out in-house team with additional data scientists and software engineers, and launch new index funds (e.g. crypto small-cap growth focused fund, ERC20 equal weighted fund, crypto momentum fund). How to participate As one of the fastest growing asset classes in the world, now is the ideal time to invest in cryptocurrency. KEWI is an opportunity to invest in an equal-weight index fund that is 100% backed by the 20 largest cryptocurrencies with the highest market capitalisation, giving you diversified exposure to the cryptocurrencies market. All non-eth investments will be converted to ETH as soon as the payment is received. Our Continuous Coin Offering (CCO) offers you 1 KEWI for every USD1 you invest. To participate, visit www.kryptos.associates/kewi 11