General Update & Learnings April 2019

Over the last few months since our official launch of the project in early February of this year, we have been to a number of conferences as sponsors as well as spoken to a lot of different companies in the space. We’ve had meetings with banks, VCs, and general brokers as well as a number of marketing companies. We have also spoken at a couple events from Istanbul and Dubai and also sponsored events in Hong Kong and Singapore. We explored a lot of different paths and after a month of assessing we have come to a few conclusions.

  1. In the area of social impact and economic development, people in the investment space don’t really understand the need for it or the gravity of the situation and potential impact.
  2. The crypto-winter has affected other companies differently, but a majority of high-flying crypto rich firms are still operating the same way they operated during the speculative stage of this industry.
  3. Since we are self funded we don’t need to do things the way they have been done but take a long term community focused approach and we feel that this approach has always been the way forward for every crypto project that has made its mark on the industry.

On point 1:

This we can understand, if you’re not from an emerging market, social impact is really just about being a bit more aware. No one disagrees with the point of the project, but when they still ask me if the problem we are solving is significant, the discussion usually ends there on our part and ends up being more about educating what is really going on in other parts of the world — simply because, unless someone has experienced extreme wealth disparity and inequity, then it's not something that one can get behind, in terms of an investment.

Also,the current understanding of social impact investing is still in its early days. Most of the social impact investing projects have been more about the reallocation of profits to some under-served area in one’s respective industry than actually having the business model directly address the social impact need through the process of making a profit. We are in the early days and while that doesn’t dissuade us from our project, it does make it clear that this is going to be a solo trek.

On Point 2:

And that is understandable because they are hoping that the good ol’ days will come back and this really is going to be just a blip in the market. This really separates the crypto easy rich and the crypto experienced rich. While these companies may not care about how many Telegram users you have now, but really they do, in terms of the whole package of influencers and airdrop promotions and stacking advisors. We have done promotions to gain attention for our community (as we needed to compete for attention in the market), but we haven’t bought into the entire packaging needed for people to believe we are a slick project for a speculative gamble.

But the same understanding of compensation for these influencers, brokers and investment groups still stands and their entire model is basically: get the best deal then dump it to the public. Not all firms and influencers are like this, as we are still in talks with a couple of strategic investment firms and we have decided on a single influencer who we respect on both a technical and market level (he has never shilled for a coin and has always been as objective as one can be in this space). But it’s not something that we want to engage with and we’re prepared, again, to take this project solo without all the supporting bells and whistles and get into the heart of things.

On Point 3:

If we’re talking about creating great value for our early contributors, then we need to look at the trajectory of the communities backing the biggest projects right now and these communities took time to build and it wasn’t about an early exit, but rather starting at an extremely reasonable point and building up from there. Since we are self funded anyway, we can take that route and what that means in practice is that the very first sale of coins should be to our community. So we have decided to do a small private sale to our community first at the absolute first, seed round rate. This is not to raise money to finish the project rather it is to establish our community.

The Plan Moving Forward is:

  • We will be setting up our own Social Impact Fund as part of the ARCC currency reserve structure. We have already funded a number of projects which fulfill at least one of three criteria of being either an infrastructure, platform and/or social impact based project. We will be announcing the projects and all of the entry has been in the seed and A rounds. What we have found is that there are a lot of really great social impact projects that can turn a profit. The reason being is that these social impact projects just need capital because they are being supported by the government or communities already.
  • We will look to the private pre-sale by the end of June, backed and set up some community forum for our project (going a bit old school here), likely on Reddit.
  • All money raised will go directly to the social impact fund and the currency reserve to back the ARCC, so much like how you can track development through GitHub, you’ll be able to track what investments we have done and how the fund is doing. For investments this will be more of a quarterly report, but for the fund it will be on a day-to-day basis once all the capital is deployed.
  • From there we will be doing development and establishing the community over the next year. Much of our previous timeline was based on trying to meet market timing expectations, but for our project, there isn’t a quick path for success. We are fine with that and we are expecting that for those who join with us now will also reap strong long term benefits (beyond that of really making a mark on the world).
  • We will list ARCC on Cobinhood and work with Cobinhood on the actual scheduling, and we committed to doing the private pre-sale within the community so they can get the best price for their contribution.
  • In terms of the further fund raising rounds, we will be announcing those by mid-June as we finalize the structure, but we will not do the private community pre-sale until that is done.

While these may not be ground breaking announcements, we are committed to moving forward with the community as the priority. The options we had on table from most firms were mostly short term and really put any community we would work with as getting the shorter end of the stick and it’s not something that we felt we needed to or wanted to do.


Sinjin David Jung

International Blockchain Monetary Reserve / ARCC Asia Reserve Currency Coin

Founder & Managing Director

April 29th, 2019