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FIVE COINS TO $5 MILLION

By Teeka Tiwari
Five Coins to $5 Million
By Teeka Tiwari

Friends, thank you for joining me and welcome to The last two times this phenomenon happened,
Palm Beach Confidential. we saw a handful of coins shoot up as much as
414,414% (Spectrecoin), 539,733% (ReddCoin),
Starting with this special report, you’ll be and even over 1,000,000% (Verge).
on your path to becoming a cryptocurrency
multimillionaire. $500 into each of these coins would have been
worth as much as $2 million, $2.7 million, and $5
It doesn’t matter how wealthy you are right now, million, respectively.
or how well you’re informed about cryptos.
Now, past success is no guarantee of future suc-
That’s because I’ve identified five coins that can cess, but in this special report, I’ll lay out the five
hand you $5 million in crypto profits. And you can tiny coins I believe could follow a similar explo-
start today with as little as a few hundred dollars. sive pattern.

How can I say that with such certainty? Before I get to the picks, let me explain why the
halving will push the entire crypto space higher…
Because I go further than any investment news-
letter editor to explore the fringes of the emerging The Halving
cryptocurrency space. I log more travel hours,
conduct more interviews, attend more meetings, There can never be more than 21 million bitcoins
and put myself on the line—all to give you, my in existence. The issuance is strictly regulated by
readers, the best research and recommendations. computer code.

And it’s all been worth it. Because $500 in the top Every 10 minutes, bitcoin “miners” compete with
five picks in Palm Beach Confidential could’ve each other to solve a complex mathematical prob-
made you $1 million in crypto profits. And I think lem. Whoever solves the problem first is awarded
we can make even bigger life-changing gains with 12.5 bitcoins.
the five recommendations in this special report.
A halving event is when the bitcoin reward gets cut
You see, now is the best time to dive into the in half. So each halving reduces supply coming to
crypto space. That’s because on May 16, 2020, the market. The first halving occurred in 2012, and
the standard for cryptos, bitcoin, is set to have its the second in 2016. The third will occur in 2020.
“halving” event.
When that halving event occurs next year, the
This is when the reward for mining bitcoin will be bitcoin reward will drop from 12.5 to 6.25 bit-
cut in half. It affects the entire crypto ecosystem… coins. Over a year, that will drop the supply of
and creates a huge opportunity for those who bitcoin coming to the market from about 675,000
position themselves now. to about 337,500.

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The halving will continue roughly
every four years until all 21 mil-
lion bitcoins are released.

As I mentioned, the next halv-


ing is estimated to occur in May
2020—about eight months away.

Our research shows bitcoin pric-


es reach their bottom about 472
days prior to the halving events. It
also shows that once the halving
occurs, you can expect the rally to
continue…

As you can see in the first chart


(right), bitcoin bottomed roughly
15 to 16 months prior to each of
the first two halving dates. But
it rallied for a year or more after
them.

And this next halving is coming at


an incredible time, too.

You see, every time crypto emerg-


es from a brutal bear market,
bitcoin always rallies first. On
average, it outperforms for about
six months. After that, the altcoin
market catches up.

And in many instances, altcoins


even surpass bitcoin—like they
did during the 2016 bull run…

Bitcoin broke its most recent Let’s get started…


downtrend in April 2019. So this suggests we’ll
IMPORTANT NOTE: Immediately after our
see quite a substantial rally in the altcoins some-
buy recommendations, we often see an initial
time in October. And generally, the altcoins
price spike. We understand this can be frustrat-
always match the performance of bitcoin and
ing. But don’t worry. This is par for the course in
eventually outperform bitcoin dramatically.
the cryptocurrency space. Most of the time, the
So you have a huge opportunity to get into alt- recommendation falls back below our buy-up-to
coins now before they catch up—and ultimately price. Use a limit order. And just be patient and
surpass—bitcoin’s performance… let the price come to you.

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Exchange Notice for U.S. Readers
In this report, we recommend the Binance and HitBTC exchanges for buying two of our coins.

Unfortunately, the exchanges have chosen to stop accepting U.S. customers for the time being.

While this was not the case when we initially recommended the coins, many exchanges are
changing their policies due to the regulatory uncertainty in the U.S.

The good news is that Binance will launch its compliant Binance.US exchange on September 25.
It will start with the major cryptos. But it plans to add additional coins as well.

We expect Binance.US to add both our recommendations. And when it happens, we’ll send you
an alert with detailed instructions on how to sign up.

In the meantime, we are researching alternative options.

However, for U.S. readers, the three other recommendations in the report are available to pur-
chase on exchanges like KuCoin, Coinbase Pro, and Bittrex.

Remember, we recommend a basket approach and putting small, uniform allocations into each
recommendation (just $200–400 for smaller investors and $500–1,000 for larger investors).
That gives us the chance to make life-changing gains without taking life-changing risks—the per-
fect asymmetric bet.

Once the bitcoin halving happens, just like in the past, any one of these coins could have multi-
millionaire-making potential. The time to get in is now.

U.S. customers should wait for Binance.US to launch and list our two recommendations. In the
meantime, check our portfolio for other available buys.

Millionaire Pick No. 1: different currencies, plus long wait times and
The Crypto Payment App high fees. And many of these solutions require
you to hold a certain amount of cryptocurrency to
Spending crypto is not easy. Many merchants pay fees.
don’t want to bother with it.
It’s all very clunky, time consuming, and expen-
The global volume of crypto purchases is just $2 sive. And on the merchant side, fees can quickly
billion vs. traditional fiat purchases of $3 trillion. reach 5% or more.
Accepting crypto requires merchants to invest in
a completely different infrastructure. And it just The other problem is people don’t like spending
doesn’t make financial sense. their crypto. There’s a regret that comes from
spending crypto only to see it jump higher.
You do have companies trying to make it easier
to spend crypto. But here again, you have myriad So a winner in the crypto payment network space
problems. They require users to shuttle around needs to solve three problems:

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• It has to make merchant adoption easy and you can easily borrow money against your crypto
cheap. at rates that start at just 0.5% per month.

• It has to make consumer adoption easy and To date, it’s the best payment solution I’ve found
cheap. in the crypto market place for merchants and
consumers.
• It has to have a low-cost way to allow con-
sumers to borrow against their crypto hold- The Future of Crypto Payments
ings, so they’re incentivized to spend while
The project making the buying and spending of
still “HODLing” (holding on for dear life).
crypto as easy as spending cash is Crypterium
It was in Eastern Europe that I found a project (CRPT).
with an answer for all three problems.
All in, Crypterium has a global team of about 90.
When using it, merchants won’t even know And it’s one of the best I’ve seen in the crypto
they’re accepting crypto. For the merchants, the space…
entire transaction happens in their local currency.
What I love about this project is that the heavy
Even the fees, which are paid for in the network’s
lifting is done. It has a product that works. A year
native crypto, are seamlessly deducted without
ago, it made bold promises. And unlike many oth-
having to buy or hold anything other than the
er projects, it delivered.
currencies you want.
A recent deal with UnionPay, the world’s largest
Even better for merchant adoption: Fees are
credit card issuer, now allows Crypterium us-
capped at 1–2% vs. 3%-plus charged by tradition-
ers to spend crypto at over 42 million locations.
al payment companies. So merchants get lower
Users can even use the global ATM network to
costs, they don’t ever touch crypto, and they can
convert their crypto into cash.
use their existing payment networks to receive
payments. It is truly remarkable what Crypterium has been
able to pull off over the last year.
On the consumer side, it gets even better. Con-
sumers pay small transaction fees of just 0.5% vs. To read about how Crypterium’s app works, read
fees as much as 3%. our original write-up here.
Best of all—it’s super easy to use. You can set it The CRPT token underlies the Crypterium mobile
up in minutes and buy crypto in an instant. You app. CRPT is special in that every time someone
never even have to touch crypto. uses the Crypterium app or Crypterium card to
make a purchase, he’s charged a 0.5% fee—in
You simply link your bank account. Then add
CRPT. And this all happens without the user hav-
your dollars, pounds, euros, rubles, or yen. You
ing to hold any CRPT.
can automatically buy or deposit crypto funds.
(Note: some features may not be available in Our belief is that Crypterium’s combination of
every country.) Once you’ve loaded up your card, crypto borrowing and spending applications will
you can spend your money anywhere credit cards make it the go-to app when it comes to consum-
are accepted. ers spending their crypto gains without losing
their crypto exposure.
And if you don’t want to spend your actual crypto,

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It’s the combination of both a borrowing and At its current growth rate, Crypterium will have a
spending platform in an easy-to-use package that $100 million GDV run rate by January 2020.
is the “special sauce” missing from the space.
Now, that may be too aggressive for just a few
We think the Crypterium app will go viral, and months away, so we project a $100 million GDV
ultimately, tens of millions of consumers will run rate three years from now, which we think is
flock to it to buy, borrow against, and spend their more conservative.
crypto winnings.
Assuming the average burn rate of CRPT remains
Given Crypterium’s head start in the space, ease the same, CRPT would need to be priced at $1.92.
of use, and global footprint... the project could (The burn rate is the amount of a token taken out
become one of the most important payment play- of circulation.)
ers in all of crypto.
That’s a 519% gain from current prices.
What’s It Worth?
Ultimately, we think that’s way too conservative.
To figure out the value of the CRPT token, we
have to model the projected volume of payments Based on the growth in users, we’ve upgraded our
that will flow through the Crypterium payment estimates from our original report. We now think
network. At this time, there are more than three years from now, Crypterium could be process-
500,000 registered users on the network. ing as much as $10 billion in payments annually.

Already, starting from nothing at the beginning That might seem far-fetched, but it’s actually
of 2019, these users are generating $12 million in quite conservative. Consider that Mastercard pro-
annual gross dollar volume (GDV) on Crypterium. cesses $6 trillion worth of transactions every year.

And it’s growing rapidly. Assuming $10 billion in payments annually,


CRPT would need to be priced at $190.23.
This is being driven by the recent launch of the
Crypterium card and its partnership with UnionPay. But remember: When the halving hits, crypto
prices go nuts to the upside. When I recommend-
What’s exciting is that, so far, Crypterium has ed Ethereum, I said it would hit $360 in about
only released an initial batch of nearly 4,000 three years.
cards. It’s a smart move to make sure everything
works properly. And it gives the CRPT token a That was before I fully understood the power of
catalyst as more cards are released. the “halving.”

And don’t forget, using the Crypterium card isn’t I mention that because during the last halving,
the only thing you can do. It also offers loans, ether went from $0.30 to over $1,400 in about
bank transfers, mobile top-ups, and vouchers. So a year and change. That was 4x higher than my
with Crypterium, you can pay for everything from initial estimate. If we see the same thing happen
everyday transactions to bills to even your taxes. again, that would indicate CRPT could trade as
high as $760.92 per coin.
We expect this rapid growth to continue. Crypte-
rium launched its loyalty program on August 1. That’s a 245,358%-plus gain from today’s prices.
And now that it’s launched the Crypterium Card, Under this scenario, a $500 investment would be
it will activate new ad campaigns. worth $1,226,790.

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This is one that absolutely needs to be in your For all their promise, blockchains have no way of
portfolio. securely exchanging information with the outside
world. In other words, they have a connectivity
As always, place no more than $200–400 for problem.
smaller accounts and $500–1,000 for larger ac-
counts into this trade. Take the world’s biggest blockchain: bitcoin.

Action to Take: Buy Crypterium (CRPT) Today, the bitcoin network can’t link directly to
Buy-up-to Price: Check the portfolio page here. off-chain databases. For example, it can’t “talk” to
Stop Loss: None the New York Stock Exchange (NYSE), the Visa
Buy It On: KuCoin retail payment system, or the SWIFT banking
Store It On: Crypterium Wallet network.

Millionaire Pick No. 2: If you want to enter that information into the
The “Missing Link” of the Blockchain bitcoin network, you need a third party. But third
parties can be bribed or coerced into entering
If you watched my special presentation, also false or misleading data. That defeats the entire
titled “5 Coins to $5 Million,” you had the special purpose of blockchain.
chance to hear about this coin already: Chain-
link (LINK). So you can see the blockchain can’t securely pull
in data from multiple sources outside its own da-
In this special report, I’ll give you my in-depth tabase. But back in the late 1980s and early ‘90s,
research on how it became one of my favorite the internet had the exact same problem.
projects to own.
There was no reliable way to pull data from dif-
Today’s most transformative new technology is ferent sources… until IBM (and others) helped
blockchain. Blockchains can write, store, and fix this problem with a suite of software tools that
send information in a way that requires no mid- became known as “middleware.”
dlemen. And that is a herculean accomplishment.
And if that’s all they’re ever able to do… they’ll Middleware: The Plumbing of the Internet
still have immense value.
Like the Roman aqueducts that connected water
The ability to transact with another person with- sources to the city, middleware connects differ-
out having to rely on trust will change everything— ent data sources. That’s why people in the tech
including how we trade and settle stocks... hold industry call middleware the “plumbing” of the
land titles... and move, store, and spend money. internet.

It’s critical to understand that what we’re seeing Today’s blockchains don’t have middleware solu-
today is the earliest version of a new network tions—yet. But once solved, blockchains’ useful-
that’ll evolve—and ultimately become as deeply ness will explode the same way the internet did.
entrenched in our everyday lives as the internet is
For example, imagine you owned a retail store
today.
in the U.S. and wanted to order clothes from a
Smart Contracts Need “Plumbing” Chinese supplier.

Just like the early days of the internet, block- A smart contract on the blockchain would auto-
chains and smart contracts have problems. matically verify your identity and ability to pay.

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It would also verify the vendor’s product and to be, a low-cost, low-risk way is needed to link
ability to deliver. That would cut down the time of them to oracles.
doing paperwork for the trade from days to min-
utes. And Chainlink is the single-best solution for seam-
lessly integrating oracle data into blockchains.
Let’s take it a step further... How valuable would
it be to match blockchain tech with artificial intel- What makes Chainlink special is that it’s figured
ligence (AI)? out a decentralized way to pull data from oracles
and inject it into the Ethereum blockchain. To
For starters, it would do wonders for the insur- date, we haven’t seen any other project offer a
ance industry. A smart contract could use AI to similar solution that’s been so broadly accepted
acquire real-time weather data. And it could use by the blockchain ecosystem.
the data to automatically write “one-off” policies
for airline passengers, trucking companies, con- Chainlink may not be a sexy business… But with-
struction firms, oil rigs, and so on. out Chainlink’s technology, smart contracts will
forever be “dumb contracts.”
Or what about a blockchain that can automati-
cally verify the collateral behind every derivative This is one of those leaps forward in network
trade on its platform? If we had that in 2008, the design on par with IBM’s foray into middleware.
financial crisis wouldn’t have happened. And it’s similar to Cisco’s early work on linking
websites via routers to share a common language.
Blockchains are considered bastions of “truth.” It’s the leap that will take smart contracts from
Meaning, you can rely completely on the data obscurity into the very fabric of our daily lives.
written into them.
Chainlink’s solution opens the door to smart
But how can you trust data pulled from an out- contracts that can automatically handle insurance
side third party? payouts, financial contracts, legal documents,
machine-to-machine commerce, and many more
The answer is: You can’t… At least, not without applications that haven’t even been thought of yet.
the help of a universally trusted source of proof.
A Network Within a Network
The Most Widely Used “Link” to the
In the blockchain ecosystem, a node is any
Outside World
computer connected to the network. Nodes verify
In the blockchain world, we call a universally transactions. And Chainlink will use a collection of
trusted source an “oracle.” It’s essentially an independent “nodes” to collect data from oracles.
agent who finds and verifies real-world informa-
tion and submits it to a blockchain for a smart For instance, one node might connect with the
contract to use. National Weather Service. Another will connect
with the NYSE. And so on…
For example, we all rely on the price data we re-
ceive from oracles like the Nasdaq and the NYSE. To prevent fraud, Chainlink uses multiple nodes
And the National Weather Service is a universally and compares their results. It then automatically
trusted oracle of temperature and wind speed. smooths out the data and sends it to the request-
ing smart contract. The smart contract using the
So if blockchains are to become more than the oracle will pay a fee in LINK (Chainlink’s token)
blunt instrument the naysayers believe them for the data.

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To make fraud uneconomical for a bad actor, trillion in revenue. Now, Chainlink won’t capture
Chainlink can insist node operators put up LINK 100% of these markets. But let’s be conservative
tokens as collateral. So the punishment for pro- and assume it’ll capture just 2%.
viding bad data will be swift and financially
painful. The current max supply of LINK tokens is 1 bil-
lion. And if we assume $28 billion is tied up in
Chainlink has been building partnerships to contracts, that gives each token a value of $28.
further its adoption. In total, it now has over 30. That alone would raise LINK 1,482% from today’s
Here are some key partners: prices.

• The Society for Worldwide Interbank Now, keep in mind, Chainlink’s target markets are
Financial Telecommunication (SWIFT): continually expanding. In fact, market research
Global banking transfer system that moves firm Statista forecasts Big Data (massive and com-
over $5 trillion daily plex data sets) alone will grow from a $56 billion
per year industry to over $100 billion by 2027.
• Web3 Foundation: A Swiss foundation
focused on blockchain technology So as time passes, Chainlink’s potential market
will only grow.
• Data-provider partnerships: ClinTex (clin-
ical trial data), Kaiko (digital assets data), There are over 10 million smart contracts today.
Brave New Coin (crypto data), and Data And by 2023, we expect there will be billions of
Sports Group (sports data) smart contracts in operation.

• Notable cryptocurrency projects: Zeppe- To put that in perspective, it took six years for the
linOS and ConsenSys projects (OpenLaw internet to scale to 10 million websites. Today, we
and Kaleido) have over 1 billion websites.

A more detailed review of how the Chainlink solu- If Chainlink comes to dominate this space as we
tion works can be found in our original write-up. think it will, virtually all smart contracts could end
You can read it here. up relying on it for their decentralized oracle data.

What’s It Worth? By capturing just 2% of the global data mar-


ket, LINK will be worth $28 per token. That’s
Chainlink is set to disrupt industries across the enough to turn $500 into $7,410 and $1,000 into
board—including big data, marketing data, in- $14,280, respectively. Today, we can buy it for
surance data, and financial market data. These under $2.
industries are massive…
In our revised data, we looked at what would hap-
• Data brokers: $200 billion per year pen if LINK becomes the de facto oracle of the en-
tire smart contract system. If we assume a similar
• Big Data: $56 billion per year
growth rate as the internet, then smart contracts
• Insurance: $1.2 trillion per year could grow in size to 1 billion. We estimate LINK
could be worth as much as $250 per coin.
• Financial market data: $28.5 billion per
year If we take it a step further and apply the type of
insane moves we saw during the last halving,
Combined, these industries generate over $1.4 LINK could be worth 4x our best0case scenario.

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That would give us a price of $250. Under this Unlike current solutions that require climbing a
scenario a $500 investment would be worth over steep learning curve, anyone can use it. With the
$70,000. click of a mouse, you can instantly secure a docu-
ment.
The time to take action is now—before Chainlink
becomes the de facto global standard for linking This ease of use is one of the reasons this project
oracles to blockchains. was able to sign a deal with one of the world’s big-
gest tech firms.
As always, place no more than $200–400 for
smaller accounts and $500–1,000 for larger ac- The deal will deliver its document-protecting
counts into this trade. tools to 8,500 companies. Last year, these com-
panies generated almost a half-trillion dollars
Action to Take: Buy Chainlink (LINK). in revenue. And we estimate they’ll process 15.2
Buy-up-to Price: Check the portfolio page here. billion pages of documents each year.
Stop Loss: None
Buy It On: Coinbase, Binance (for some interna- The market has failed to grasp just how big a deal
tional readers) this is. That gives us a massive advantage. This
Store It On: MyEtherWallet one partnership could make this project the lead-
ing provider of document security. And it would
Millionaire Pick No. 3: Securing take this token up 935% this year… and 4,328%
the World’s Documents over the next three to five years.

The number of documents we use each year is And that’s without the halving. In a moment, I’ll
massive. show you what the halving can do to the price of
this coin.
Just to give you some context, U.S. office workers
alone produce an estimated 50 trillion pages of Data Anchoring to the Blockchain
documents each year. Many of them are convert-
ed to digital copies, making them highly suscepti- The project set to take document security main-
ble to cyber tampering. stream is Tierion (TNT).

So the key problem to solve is: How do you easily Wayne Vaughan and Jason Bukowski started
secure all that data for a minimal cost? Tierion in 2015.

You see, the cost to secure a document can’t out- Wayne brings over 20 years of digital marketing
strip its value. Think about it this way: Would you experience to the table. He created one of the first
employ an army of thousands to protect a child’s software as a service (SaaS) marketing automa-
piggy bank? tion platforms—and founded a digital agency.

Obviously not. The cost of protection is far more During his time as a digital marketer, he recog-
than the value of the piggy bank. nized the need to verify the integrity of marketing
analytics data. So he teamed up with Jason—an
But in this section, I’ll tell you about a project experienced software developer—to build a solu-
we’ve found that’s figured out how to secure the tion: linking data to the bitcoin blockchain to
world’s digital documents for just fractions of a create an immutable timestamp proof.
penny. And customers can use its solution with-
out any programming knowledge. In August 2015, they launched Tierion as an

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SaaS application. It anchored data to the bitcoin just a matter of waiting for market sentiment to
blockchain and created an audit trail for business catch up.
processes.
What makes Tierion special is it’s already inno-
Tierion raised its first round of funding in April vating. It’s figured out a way to make document
2016. Prominent blockchain venture capital firms security easy and cheap. For many users, the cost
Blockchain Capital, Fenbushi Capital, and Digital will be near zero (more on that in a moment).
Currency Group led the $1 million raise.
And what separates it from its competitors is its
Moving forward, the team realized its solution incredible adoption by Corporate America.
was limited by bitcoin’s throughput. That would
make its service too expensive. And so, the idea Tierion has quietly amassed the biggest footprint
for Chainpoint was born. among global corporate users of any of its com-
petitors.
In 2017, Tierion released its white paper… raised
$25 million in a token sale… and launched the A deal with Dell has put the Chainpoint system
Tierion Network with its flagship product, Chain- on Dell’s Boomi enterprise software platform.
point. This has put Chainpoint in the hands of Dell’s
115,000 users. And 8,500 enterprise clients, such
Today, Chainpoint has over 5,700 nodes and as American Express, Novartis, and Dropbox, are
thousands of customers—and can process mil- already using it.
lions of document proofs per day.
Through Boomi, an enterprise client could take
Given the scope of annual corporate fraud (as the data it’s stored on Dropbox and register it on
much as $360 billion a year), we see a future the blockchain with Chainpoint.
where regulators and accounting bodies will
compel all public businesses to use some form of That’s Boomi’s real benefit: It easily and securely
anti-tampering tech to secure their documents. connects software applications for businesses.
The addition of Chainpoint now makes document
The size of this opportunity is vast. As I’ll show security just a mouse click away for America’s
you, Tierion has the broadest corporate footprint largest companies.
of any player in the space. We believe global
corporations will migrate to its low-cost, easy It’s not just Dell using Tierion, either… In 2017,
solution for 100% tamper-proofing their entire Microsoft announced it’d also be working with
document chains. Tierion.

We wrote in-depth on how Tierion works in our The two companies have been working on se-
original write-up. You can read it here. curing digital identity and documents on the
blockchain. And this year, Microsoft incorporated
Adoption and Innovation Chainpoint into its Flow and Azure Logic Apps.

The two key factors to look for in an early-stage Microsoft Flow is like Dell’s Boomi. So Flow
technology are the pace of innovation and the customers can use Chainpoint with popular appli-
pace of adoption. That’s how you’ll find a project’s cations such as Salesforce, Office 365, Twitter,
real value—not how it’s priced. Dropbox, and Google’s services.

If you’re on track with those two factors, then it’s And Tierion is also working on a plug-in for Hy-

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perledger, the open-source blockchain supported Millionaire Pick No. 4:
by IBM, Linux, Intel, and others. The Crypto Bank of the People
What’s It Worth? I stumbled across this project while researching
global loan sharks. You see, there’s a booming
Tierion is a $13 million project in an information
business in providing loans to the “unbanked.”
security market worth $124 billion. (That’s per
These are people who can’t get loans or other
Gartner, a leading technology research firm.)
financial services from traditional banks.
So the market is valuing Tierion at just one basis
An estimated 1.7 billion people worldwide rely on
point of the entire market—or 0.005%.
underground banking networks.
Simply put, the market is overlooking Tierion.
Legitimate and illegitimate lending operations
Based on revised estimates, if we assume that alike prey upon the unbanked. In all, about $15
TNT eventually captures 10% of the global mar- trillion in loans gets washed through what some
ket, it will be worth as much as $12.4 billion. call the “shadow banking” system.

That would give TNT a price of $28.93—a This network of quasi-legal and illegal “shadow
93,850% gain from today. banks” is thriving in every corner of the globe, but
nowhere is this sort of lending more prevalent
That’s enough to turn $500 into $482,166. than in Latin America.

As we’ve done above, if we take it a step further Out of a population of over 644 million, more
and apply the type of insane moves we saw during than 400 million have no bank accounts. That’s
the last halving, TNT could be worth 4x our the world’s highest percentage of unbanked.
best-case scenario. That would give us a price of
$115.72. Under this scenario, a $500 investment Why does 62% of Latin America remain unbanked?
would be worth $1,878,570.
It all has to do with costs. And providing banking
People will look back at Tierion’s market cap of services is expensive.
just $13 million and gasp at how cheap this proj-
In the United States, it costs $8,475 to originate
ect was.
the average home loan. We don’t have the exact
As always, place no more than $200–400 for numbers of home loan origination costs in Latin
smaller accounts and $500–1,000 for larger ac- America; but we do know Latin American banks
counts into this trade. have to work under the same cost burdens U.S.
banks do.
Action to Take: Buy Tierion (TNT)
Buy-up-to Price: Check the portfolio page here. That means they have to pay for compliance
Stop Loss: None costs, staff salaries, and physical branches. And
Buy It On: HitBTC, Binance (for some interna- these fixed expenses make it impossible for bank-
tional readers) ing giants to offer services to lesser-developed
Store It On: MyEtherWallet markets where the average consumer loan might
be as small as $300.

But the unbanked still need banking services—es-


pecially loans.

11
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That unfilled niche has led to a global boom in Ethereum-based (ERC-20) token currently trad-
loan sharking—and not just in places you’d ex- ing around $0.01—and it’s an integral part of the
pect, like Africa and Latin America… loan-making process.

• Some consumers in the United Kingdom Unencumbered by traditional banking models


are paying 68.7% per year in interest. of physical branches and a bloated staff, Ripio
CEO Sebastian Serrano is transforming how the
• In Japan, quasi-legal loan sharks called unbanked are getting access to financial services
sarakin charge up to 50% for a 10-day loan. such as payments, money transfers, and loans.
Annualized, that would be 267.5 million
percent. His payment company offers a full-fledged bank-
ing platform, including digital wallets.
• In places like Brazil, Mexico, and Argenti-
na, the interest rates seem tame by com- As mentioned above, more than 300,000 people
parison—but are still astronomical. across Latin America use the Ripio wallet to pay
bills as well as to buy, sell, and store local fiat and
• Argentina’s “unofficial” (read, loan-shark) some cryptocurrencies.
rates average between 300% and 800% per
year. Even the official rates in Argentina are What makes Ripio different is that unlike other
60% per year. And Brazilian consumers pay blockchain projects attempting to become payment
190% per year on their unsecured loans. networks, it has already successfully integrated its
wallet into the traditional banking system.
But what if there was a cost-effective way for
banks to offer loan services to this group of the Here’s what that means…
unbanked?
It has a relationship with Rapipago, a payments
Just in Latin America alone, it’s estimated the center with around 8,000 physical locations.
potential unbanked market is worth $380 billion.
As already mentioned, globally, $15 trillion flows It allows Argentines to deposit cash directly into
through all shadow banking networks. their Ripio wallets.

So clearly, this is a big, lucrative market. All that’s Additionally, users can link their bank accounts
needed is a low-cost way to link the unbanked directly to their Ripio wallets by electronically
with banking services. transfer funds between banks.

And the project in this section is doing exactly The wallet allows users to hold Argentine pesos,
that… Mexican pesos, Brazilian reals, bitcoin, ether, the
stablecoin Dai (DAI), and of course, RCN tokens.
The Crypto Bank of the People
Its solution has been impressive enough for
The name of the project leading this charge into Naranja—one of the biggest credit card providers
blockchain-based lending is Ripio Credit Net- in Argentina—to start testing the Ripio network.
work (RCN). Naranja has over 9 million credit card customers.

Ripio Credit Network and the RCN token are part On top of integrating with banks, Ripio has inte-
of a blockchain-based protocol that uses smart grated with Latin America’s largest online shop-
contracts to make low-cost loans. RCN is an ping platform, too…

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A combination of eBay and Amazon, MercadoLi- to pay fees as well as a “bridge” currency used to
bre transacts $11.7 billion per year across its on- move money around the world.
line trade platform. Over 248 million registered
users rely on MercadoLibre to buy, sell, and trade Unlike sending a wire that can take five days, cost
products; finance inventory; and send money. $70 in fees, and another 3–15% in shrinkage from
currency fluctuations, the RCN token can move
Here’s How We’ll Profit an infinite amount of money... in minutes... for
just pennies.
The key piece of the Ripio formula lies in the RCN
token. It’s integral to the loan-making process. All By using RCN to move money between borrowers
fees are paid in RCN and all loans are made and and lenders, users gain the finality and binding
repaid in RCN. trust of the blockchain with very low transaction
costs.
At the time of this writing, lenders are making 50–
80% per year on their Ripio Credit Network loans. The key to this idea’s future success will be user
This is certainly high by our standards... But com- growth and loan growth. As more users flock to
pared to Argentina’s prevailing rates of 60% (which the Ripio wallet and more lenders use Ripio Cred-
is only for their best “already banked” customers) it Network, loan demand will soar.
and loan shark rates of 300–800%, it’s a bargain.
Loan demand directly impacts demand for the
Here’s a thumbnail sketch of how the process RCN token. As loan demand goes up, so will the
works… demand for RCN.

Let’s say a consumer in Argentina wants to bor- In our original write-up, we go into more detail
row $200 worth of Argentine pesos. And a lender on how the actual loan mechanism works. You
in Japan is willing to put up the $200. can read it here.

Instead of having to convert yen to pesos and What’s It Worth?


wire the money, the lender simply purchases
$200 worth of RCN tokens. The Ripio wallet con- All the pieces are coming together to make Ripio
verts the RCN to pesos, so the borrower receives Credit Network the leading blockchain loan solu-
the loan in their home currency. tion in all Latin America. And when it does, RCN
token usage will explode.
When it comes time to repay the loan, the bor-
rower repays in pesos. Ripio converts the pesos to Over the next three years, Ripio management be-
RCN and credits the Japanese investor with RCN. lieves it can onboard 3 million users and see loan
Those tokens can be immediately converted to volume of more than $150 million.
yen or be re-loaned to another borrower.
If it can hit three million users, we think $150
Throughout this process, there are folks who pro- million in loans is very conservative. And this as-
vide loan guarantees, credit scoring, and identity sumes an average loan size of just $50 compared
verification. All of that happens seamlessly in the to Ripio’s current average loan size of $200.
background. Those folks all receive fees for their
If Ripio can continue to match its current average
services—which are paid in RCN tokens.
loan size, in three years, its loan book could be as
So the RCN token is both an incentive token used large as $600 million. (That means it would have
$600 million in outstanding loans.)

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Remember, every loan is converted into RCN, at this time, there isn’t a single blockchain player
and then into a local currency. As the debt is that has the relationships and existing payment
repaid, the loan goes from a local currency back rails that Ripio enjoys.
to RCN… and then back into the lender’s home
currency. Or it’s simply kept in RCN and reinvest- Important Note: RCN has a very small market
ed into a new loan. cap and will be difficult to buy. We suggest us-
ing limit orders, being patient, and letting prices
So under these scenarios, what is Ripio worth? come to you.

Let’s use publicly traded peer-to-peer loan plat- Action to Take: Buy Ripio Credit Network (RCN).
form LendingClub as an example… Buy-up-to Price: Check the portfolio page here.
Stop Loss: None
Currently, LendingClub has $41 million in out- Buy It On: Binance (for some international
standing loans and an enterprise value (market readers)
cap + debt – cash) of $1.41 billion. Its market Store It On: MyEtherWallet
value is 34 times bigger than its loan book.
Millionaire Pick No. 5: This Project
We think that three years from now, Ripio’s loan
Will Secure Crypto Trading
book could be in the range of $150 million to
$600 million. While the blockchain is virtually impossible to
hack, cryptocurrency exchanges are relatively
Now, in my original report, I wrote that I didn’t easy targets. That’s why we’ve always told our
think RCN could trade for 34x its loan book. And subscribers not to hold their crypto assets on
under a normal scenario, it wouldn’t. But remem- exchanges.
ber, under the halving scenario, prices go nuts.
Since 2017, cryptocurrency exchanges have re-
If we assume the market projects a $600 million ported $1 billion in funds stolen due to hacks and
loan book at a 34 multiple, that implies the RCN security breaches. And we estimate $20 billion
token could be worth as much as $40.22 per coin. worth of crypto is held on exchanges. That’s a big
That’s enough of a move to transform a small honey pot.
$500 investment into as much as $1,256,875.
In this section, we’ll tell you about a project that’s
Banking is a business of relationships, and Ripio solving the problem of cryptocurrency exchange
has them in spades. security.

It’s already tied to the Argentine and Brazilian Instead of using centralized platforms like popu-
banking systems. By 2020, it will be offering its lar cryptocurrency exchanges, this project uses a
products in Mexico. And it has a direct relation- decentralized network. That will make it virtually
ship with the biggest e-commerce site in Latin impenetrable—just like the blockchain.
America, MercadoLibre.
It’s also faster and more convenient than any of
At this point, Ripio’s banking relationships are its rivals.
almost an insurmountable moat.
Over the next three to five years, we think its
No endeavor in the crypto market is without risk. technology could lay the foundation for an entire-
And certainly, Ripio has many hurdles in front of ly new decentralized global trading marketplace…
it before gaining widespread adoption. However, making the coin leap 80 times higher from here.

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www.palmbeachgroup.com
Before we get to the project, let me tell you the times thousands) of computers simultaneously.
problem it’s solving. To append the data, 51% of the computers in the
blockchain have to agree that it’s a valid request.
Centralized Exchanges Are Vulnerable
That’s what makes the blockchain so strong. A
Exchanges have a history of sloppy internal hacker would have to gain control of 51% of all
controls and poor security. So why do people the machines on the network simultaneously to
continue to leave their funds on crypto exchanges hack the network.
despite the risks?
For instance, if hackers wanted to take over the
There are two reasons: Right now, centralized bitcoin blockchain, they would need nearly $15.7
networks are 1) much faster and 2) more conve- billion in specialized hardware. They’d also need
nient than decentralized networks. a power source that could deliver the equivalent
of 10 days’ worth of New York City’s power usage.
The price for this speed and convenience is se-
curity. Hackers attack exchanges because they Decentralization promises to do away with cen-
represent resource-rich targets with huge payoffs. tralized networks such as banks and trading ex-
changes. And they’ll usher in a new age of cyber-
Think about it from a criminal’s point of view.
security for crypto exchanges, too.
Would you rather pick the pocket of individual
bank customers or rob the whole bank? Yet, to date, decentralized exchanges (DEXs) that
allow person-to-person (or peer-to-peer) trading
The biggest exchanges move $1 billion worth of
have failed.
crypto every day. They are much juicier targets
for hackers than individual digital wallets that Far less than 1% of the world’s trading volume
hold small amounts of crypto funds. goes through a DEX. There are four major rea-
sons behind their failure to catch on so far:
That’s why no matter how much money exchang-
es spend on security… someone smarter will • They don’t interoperate with other ex-
figure out a way to rob them. changes, which causes a lack of volume.
As you can see, cybersecurity is a huge problem • They’re slow.
for all centralized crypto exchanges. But we’ve
found the solution… • They’re expensive to use.

Decentralized Networks— • They’re difficult to use.


The Solution to Hacking
The biggest knock against DEXs is their lack of
All the security problems facing data storage can trading volume.
be traced to one issue: centralized servers.
Let me explain…
But there’s a solution to this problem: The block-
chain. The blockchain is a decentralized network. DEXs are siloed. That means they operate in their
That makes hacking virtually impossible. own little world. In other words, they have no
way to talk to one another. That means they can’t
Instead of one central computer storing the data, pool their order volume, which leads to a string of
the blockchain stores data on hundreds (some- DEXs that have anemic trading volumes.

15
www.palmbeachgroup.com
Think of it as two foreign speakers trapped in the (along with changes) off the blockchain. Orders
same room… they have no way to communicate. only get written to the blockchain when trades
are settled. This dramatically speeds up the trade
The current inability of DEXs to work with one process and eliminates needless transaction fees.
another means they can’t attract enough volume
to compete with big exchanges like Binance and In addition to being slow and expensive, DEXs
Coinbase. They are also much more expensive to are illiquid because they can’t communicate
use than centralized exchanges. with one another. In our opinion, this is the real
breakthrough and “special sauce” behind 0x’s
On top of this, they’re very difficult to use. So far, solution.
DEXs have proven to be designed for highly tech-
nical users and require a steep learning curve. 0x allows any exchange using its protocol to pool
its orders with any other exchange utilizing the
Low volume due to lack of interoperability, high 0x protocol. This increased interoperability will
transaction costs, and difficulty of use make lead to much more liquidity.
DEXs poor competitors to centralized exchanges.
There are dozens of projects trying to solve these Our bet is the network effect of many projects
problems. We think we’ve found the best… using 0x will gradually result in ever-larger pools
of liquidity that will attract more DEX operators
The New Standard for DEXs to the 0x solution. This, in turn, will attract more
traders—which brings more liquidity.
The name of the project bringing interoperabil-
ity to the world’s decentralized exchanges is 0x
How Does the Token Work?
(ZRX).
Project 0x’s platform incentivizes people to col-
0x is a protocol (or set of rules) that programmers lect and relay trade orders.
use to build blockchain applications. These apps
let people trade crypto tokens directly without the That’s why in the 0x ecosystem, they’re called
need of a centralized exchange. “relayers.” They act much in the same way as a
traditional centralized exchange would, except—
As mentioned above, current decentralized ex- of course—they’re not centralized.
changes are slow and expensive.
The 0x protocol automatically handles the pro-
The reason is because every time you adjust cess of moving coins from the seller to the buy-
the price of an order, it has to be written to the er. In exchange for facilitating the transaction,
blockchain. So in the case of a DEX that operates relayers receive fees paid in 0x tokens for each
on the Ethereum network, you’d have to wait 15 transaction.
seconds for the blockchain to “see” your order.
The project has 1 billion tokens in its full float. It
On top of that, you have to pay a network fee ev- released 50% of its tokens during its August 2017
ery time you make an order change. This makes launch.
using DEXs slow and expensive.
Of the other 50%: 15% are held by 0x, 15% are
0x fixes this problem. in a developer’s fund, 10% went to the founding
team, and 10% went to early advisers and backers
The 0x protocol collects order data and relays it
(these vest over four years).

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www.palmbeachgroup.com
The token itself has two uses: fees and staking. trillion of annual cryptocurrency trading volume,
of which DEXs account for less than 1%.
• The first is relayer fees. Buyers and sellers
pay fees to the relayers in 0x tokens (see If we assume annual trading fees of 1%, then cen-
full write-up for more details). tralized crypto exchanges are generating between
$12.7 billion–$174 billion a year in fees. If just
• The second use of the token is staked in- 5% of that volume moves to the 0x protocol, we
fluence. That means the more 0x coins you could potentially see $635 million–$8.7 billion in
own, the bigger say you have in how the fee generation. These fees would all be paid in 0x
project is governed and developed. tokens.

The opportunity in front of us is getting in early Even if we give that assumption an 80% haircut
on a protocol that can become so widespread that and assume just 2% of the crypto trading mi-
demand for the token soars. grates to 0x, that will still create $127 million to
$1.74 billion per year in fees paid in 0x tokens.
If 0x can emerge as the most widely used decen-
tralized protocol, it can become the building block The circulating supply of tokens is currently 600
much of the world’s digital trading exchanges rest million. The current market cap is $97.5 million.
on—the same way much of the world’s blockchain Once actual fee-driven demand kicks in, the price
app development happens on Ethereum. of the token will have to rise. Assuming we see
usage hit the $1 billion level in fee generation, we
Under that scenario, we’ll see massive value ac-
estimate the market will move the value of 0x to a
crue to the token.
fully diluted value of as much as $8 billion.
For those interested in a deeper dive into exact-
Here’s how we came to that estimate...
ly how the 0x protocol works, read our original
write-up here. Coinbase generated about $1 billion in revenue
last year and according to published reports, the
What’s It Worth? company has a value of approximately $8 billion.
To get an idea of what 0x could be worth, we have Assuming the token market uses the Coinbase
to look at how much potential market share could valuation as a rough guide, then just 2% market
migrate to the 0x protocol. share could give 0x a token price of $8. If we are
really right and 10% of the world’s crypto trading
The most obvious place to look at first is crypto- migrates to the 0x protocol, the Coinbase model
currency trading. suggests we could see prices as high as $40 per
token for 0x.
Per data from blockchain.info, U.S. crypto ex-
changes did $94.6 billion in volume over the last Under the type of crazy moves we see during the
year. That’s just the U.S. coin market. We don’t halving, we could see 0x move like Ethereum did
have access to historical trading volume, but and 4x our most aggressive estimate. Under that
recent worldwide daily volume was $47.9 billion, scenario, the coin would be worth $160.
which annualizes to $17.4 trillion.
I know that seems insane, and it is. The thing to
TokenAnalsyt aggregates the top bitcoin exchang- realize is that during the halving, prices go insane.
es and daily volume was $3.5 billion, which an- Nothing makes sense during a halving, and that’s
nualizes to $1.27 trillion. So there’s $1.27 to $17.4 what’s so amazing about getting in early.

17
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While people are paying $160 for 0x, we’ll be Bringing It All Together
cashing in our chips and selling them our coins.
Friends, we have a once-in-a-four-year opportu-
Under this best-case scenario, a $500 investment nity to make millions from what will be a massive
in 0x would transform into $415,150. move higher in crypto prices. During a halving,
logic, valuations, and prudence get thrown out
As always, place no more than $200–400 for the window. Prices go to insane levels that make
smaller accounts and $500–1,000 for larger ac- no sense whatsoever.
counts into this trade.
That’s why we want to get in now while prices are
Action to Take: Buy 0x (ZRX). cheap. Because once the halving happens, you
Buy-up-to Price: Check the portfolio page here. will see price appreciation unlike anything you’ve
Stop Loss: None ever seen before. It won’t make sense, and it
Buy It On: Binance (for some international won’t be rational, but the millions you’ll make off
readers), Bittrex the madness of the halving will be 100% real and
Store It On: MyEtherWallet will change your life forever.

Customer Care: Toll-Free: (888) 501-2598, International: (561) 921-8774, Mon–Fri, 9am–7pm ET, or email support@palmbeachgroup.com.

© 2019 Palm Beach Research Group, 455 NE 5th Avenue, Suite D376, Delray Beach, FL 33483, USA. All rights reserved. Any reproduction, copying, or redistribution, in whole or
in part, is prohibited without written permission from the publisher.

Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation—we are not
financial advisors nor do we give personalized advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated and
there is no obligation to update any such information.

Recommendations in Palm Beach Research Group publications should be made only after consulting with your advisor and only after reviewing the prospectus or financial statements
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18
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