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Coinsilium Group Limited (COIN) Coinsilium Group Limited: Strategic Business Update 14-Jan-2019 / 07:00 GMT/BST Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. 14 January 2019 COINSILIUM GROUP LIMITED ("Coinsilium" or the "Company") Strategic Business Update Coinsilium Group (NEX: COIN), the blockchain venture builder, advisor and investor which manages and finances the development of early stage blockchain technology companies, today announces a Strategic Business Update for shareholders, incorporating a review of 2018 activity and an outline of the Company's plans for 2019. Eddy Travia, Chief Executive Officer of Coinsilium, commented: "As the blockchain industry matures, it is starting to attract an increasing number of well-funded institutions and Coinsilium's track record of identifying high quality early stage opportunities, such as RSK and Factom, is well known in the industry. In 2019, our key priorities will therefore be to clearly demonstrate to the market the potential we see in the companies within our investment portfolio and to continue to build-out various new initiatives to take full advantage of a rapidly expanding blockchain industry. As a company, Coinsilium is exceptionally well positioned with a robust financial model and an ability to leverage shareholder returns at an exciting time in the blockchain industry. However, we recognise the challenge that the market has in valuing early stage blockchain-based companies, particularly as there are so few benchmarks. That said, the sector has seen some remarkable valuation uplifts in relatively short timescales as companies have proven their viability. Therefore, we will work to ensure that Coinsilium's market valuation better reflects the value of our current business and its future potential in 2019. I trust the information provided in this update will be useful for shareholders and potential investors, to better understand our current position and our strategic and operational plans for 2019 and beyond." Blockchain Investment Environment in 2018 The Company has observed record levels of institutional investment in blockchain companies over the past twelve months. This echoes a report published in October 2018 by blockchain research group, Diar, outlining that Venture Capital investment in blockchain companies was up by 280% so far in that year. Coinsilium believes that increased interest in the sector has had a positive effect on the overall valuations of blockchain companies and the Board therefore looks forward to the next twelve months with confidence. The Company witnessed the blockchain sector mature significantly in 2018 and was able to take advantage of a vibrant market at the beginning of the year through a number of new client acquisitions. Following recent market shifts, Coinsilium adjusted its criteria for on-boarding new clients, focusing on businesses for which blockchain technologies are an intrinsic element of their business models. The Company continued to make good progress and generate revenue, notwithstanding the slowing of business as a result of increased regulatory scrutiny of the industry and a downturn in cryptocurrency and token prices from July 2018. The Company invested in innovative blockchain-based start-ups and SMEs within a number of sectors including financial services, fintech and health. All investees increased their user-base and achieved growth towards their strategic objectives over the last year. Coindesk Article: https://www.coindesk.com/vc-investment-in-blockchain-startups-is-up-280-so-f ar-this-year  Coinsilium Share Price Review Over the past year, we have seen a strong correlation between the share price of Coinsilium and the price of cryptocurrencies. Whilst Coinsilium's focus has always been on the underlying blockchain technology and not the cryptocurrencies per se, given that, until recently, a significant proportion of Coinsilium's advisory revenues and success fees have been denominated in cryptocurrencies, it is understandable that the market would, to some degree, see fit to conflate the two. Over 2018, the price of bitcoin has fallen from US$19k to under US$3.5k and now sits at circa US$3,600 (at the time of writing). In the short to medium term, should cryptocurrency market conditions continue to improve, Coinsilium's share price may well benefit from such market sentiment alignment. However, our medium to long-term strategic goal remains to demonstrate the commercial diversity and solidity of Coinsilium as a business so that, in the future, the share price will more fairly reflect the company's operational performance and potential, much of which remains unconnected to cryptocurrency prices. Investee Highlights in 2018 Indorse  Singapore-based Indorse is a tokenised platform, that scales globally, and is expressly designed to create a genuine confidence that prospective employees have the bedrock skills required to perform. It achieves this by verifying the actual technical skills of individuals on its platform through validators, interactions with AI chatbots and assessments by acknowledged experts in their relevant fields. Blockchain then creates an immutable record of this skills assessment and also provides the mechanism to reward participants for the value they create to the platform. For further information about Indorse, please visit www.indorse.io . Indorse fulfilled successful investment rounds during 2018, raising SGD450,000 in equity investments and c.US$9m via a token sale. Over 40,000 users signed up to the platform with 96 programmers currently validating and reviewing code to verify the technical competence of coders. Indorse fully delivered on its promises for 2018 by creating and running a working product despite difficult crypto market conditions. The team also managed to build and rollout an update of their platform in December 2018. It has customers in the pipeline for 2019 and is expected to achieve significant revenue growth in the upcoming months. RSK  RSK Labs is an open source platform adding value to the Bitcoin ecosystem by enabling the use of smart contracts. RIF Labs uses the RSK Smart Contract Network for settlement, identity management and economic coordination in a fully decentralised method. Coinsilium was the lead investor in RSK's first investment round in February 2016. For further information about RSK, please visit www.rsk.co . In February 2018, the Company purchased 15,000 series Seed-1 RSK shares in addition to its previously held 50,000 series Seed-1 RSK shares, making the total amount invested US$83,750 for a total holding of 65,000 Seed-1 RSK shares. On 19 November 2018, the Company announced that RIF Labs had agreed to acquire the entire share capitals of RSK Labs. The RIF Labs acquisition was conducted by way of a 'share for token' swap between RSK Labs shares and RIF tokens and Coinsilium will receive approximately 1,951,846 RIF tokens over a vesting period in return for its 65,000 RSK shares. The value of the RIF tokens receivable by Coinsilium was US$773,070 at the prevailing November 2018 Bitcoin/USD rate. Malcolm Palle, Coinsilium's Executive Chairman, joined the board of RIF Labs in 2018. RSK Labs is one of Coinsilium's major investments and we look forward to deepening our ties with RIF Labs and finding mutually beneficial opportunities for development. Elevate Health Elevate Health is building a platform focused on the behavioural health space, aiming to facilitate a number of cost-reducing solutions for behavioural healthcare providers, insurers, health authorities, families and employers. to address problematic and costly lifestyle choices on the part of their customers, clients, patients, employees and loved ones. Elevate Health seeks to connect technological innovations such as phone apps, wearable devices, oracles and smart contracts in order to pay monetary rewards to motivate lifestyle changes. For further information about Elevate Health, please visit: www.elevatehealth.io . Elevate Health has now successfully piloted its platform and the "rewarder" admin section of the platform and user app went live on the Android Play Store on 5 January 2019. Additionally, Elevate Health will go live with its first use case, SOBER, this month, alongside its partners East Sydney Medical and The Dawn Rehab, Thailand. SOBER will monitor problem drinkers leaving medical care and reward them for remaining sober as part of their rehabilitation. In February 2019, Elevate Health will launch two pilot projects with Aboitiz Equity Ventures, one of the 10 largest groups in the Philippines and a Forbes Global 2000 company. It will reward their employees for achieving lifestyle changes for various lifestyle metrics. The platform is targeting 100,000 end users by the end of this year, which would represent an equivalent transactional volume of US$500,000 per day. StartupToken  StartupToken is a Gibraltar registered hyper-accelerator helping entrepreneurs in the blockchain space to grow their projects into successful start-ups. StartupToken helps its clients reach the necessary level of engagement with their communities worldwide thanks to a full-service package including legal and technical support, token economics and modelling, compliance, events organisation and growth hacking. For further information about StartupToken, please visit www.startuptoken.com . In November 2017, Coinsilium acquired a 30% holding in StartupToken Ltd, at a valuation of circa GBP1.2 million, for a consideration of GBP360,905 paid
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