Executive Summary

An ecosystem of value

ITMF is building a crypto-based mutual fund and a value ecosystem that generates revenue from all aspects through strategic mutually beneficial arrangements from all parties involved. The value ecosystem solves the fundamental issues of value instability and usability as a mainstream currency.

Through the value ecosystem, ITMF will redefine how money is moved, spent and invested by creating a crypto-currency and crypto-security called ITCO. ITCO coinholders would be able to use it as a currency for payments and benefit from shareholder-like ownership in ITMF, similar to shareholder ownership in public companies.

ITMF is building an innovative crypto-centric mutual fund with accounts and fund classes for everyone buy a basket of cryptocurrencies. ITMF funds will accept ITCO, BTC and Fiat for deposits.

Leveraging on the ITCO network, ITMF will have special commerce funds with merchants to directly invest ITCO payments into ITMF funds for passive financial growth, which can also be expanded to create credit card-like rewards to their customers.

Our strategy through the value ecosystem is to create a compelling case for investors and businesses to grow their wealth, and position ITCO as a competitive cashless payments solution and currency.

Problems & Opportunity

Problems ITMF is solving through the value ecosystem

Crypto-Corporate Governance

Without proper value management, few cryptocurrencies will succeed

People want self-regulation

Supporting the points above, an overwhelming majority of respondents in Foley's 2018 Cryptocurrency Survey indicates that "89% say the industry should explore implementation of standards through formalized self-regulation".

ITMF believe that the problems arising from cryptocurrency networks is because of the prefined emission schedule and controlled supply which places the cryptocurrency on a period of inflation, where coins are generated and distributed, and then on a period of deflation, where coins are no longer generated or in very limited amounts.

From an economic and business standpoint, this removes responsibility from the cryptocurrency team to manage the value of the currency, while harming the ability for the cryptocurrency team to finance its development and growth.

Inflation Period

During the first (usually 4) years, coins are continually generated according to its predefined emission schedule irregardless of company and market conditions.

  • The cryptocurrency developers have to outperform the predefined emission schedule; or
  • Depend on the market conditions to maintain its value; thus
  • Affecting its ability to draw on its funds for business growth and expansion.

Deflation Period

Once the emission schedule completes, coin generation grinds to a halt and is tremendously limited, starting a period of deflation that encourages speculation over utility.

  • A deflationary incentivize users to hold and speculate on its future value during the early and crucial inflation period;
  • Which impedes the utility as a currency and discourages adoption of it as a currency for transactions.

Crypto-Fund Management

Cryptocurrencies are high risk, high reward that require constant monitoring

People want cryptocurrencies, but without the risk

According to Foley's 2018 Cryptocurrency Survey, 72% of respondents want to see ETFs for cryptocurrencies. This result indicates a strong interest in retail investment products that hold a basket of cryptocurrencies, like a mutual fund with built-in diversification to reduce risk.

Cryptocurrencies are complex assets that need to be looked at from all angles to make a sound investment or trade. There are thousands of cryptocurrencies in a fast-moving, 24/7 market. It takes a team of experts working round the clock to keep up with the trajectory of each asset, which may include but is not limited to:

Fundamental Analysis

Evaluation of an asset using quantitative and qualitative factors such as business model, team track record etc.

Technical Analysis

Analyzing the market price action of an asset through charts and price data across multiple exchanges.

Market Analysis

The economic, social and political forces that may affect an asset.

Crypto-Payments

Crypto-based payments are not competitive and too volatile

Due to the speculative and inflationary/deflationary nature of cryptocurrencies, most cryptocurrencies are not suited to be used as a payments solution due to price volatility.

Cross-border Remittance

Cryptocurrencies generally have an edge with lower fees, but price volatility makes the process risky.

Inter-Bank Transfers

Inter-banking transfers are typically free from charges, cryptocurrencies however usually have a network fee for the transfer.

Price Volatility

Price volatility discourages merchants from adopting cryptocurrencies as a form of payment, or inflate exchange rates.

Rewards Programs

Many cashless payments solutions are highly competitive and have attractive rewards programs to draw users.

Some scenarios such as cross-border payments may be more attractive against the high fees of international banking and payments, but day-to-day crypto-based micropayments are not competitive against traditional forms of cashless payments solutions such as credit cards or mobile/app payment solutions, which often come with attractive rewards programs.