The digital asset market is expanding rapidly, but has not achieved mainstream adoption. At Kriptomat, we believe we have the solution that will bring digital currencies into every home.
Kriptomat is an EU regulated, fully licensed digital currencies exchange platform and secure digital wallet all-in-one.
Our user-focused approach makes buying, using, storing and transacting with digital currencies and other blockchain services simple and intuitive – even to complete beginners.
Kriptomat is a fully operational service with both mobile and web platforms launched in June 2018.
Kriptomat tokenised securities
We have reached critical velocity and, rather than surrender control of our destiny by seeking institutional funding, we have chosen to give our users and other interested individuals the chance to support our company by buying digital shares and investing in our platform.
This will allow you to share in the financial success of one of Europe’s fastest growing fintech companies.
- Fully compliant security token
- Right to 8% revenue sharing
- Right to 4% profit sharing via dividends
- ERC token standard
What users and partners say
I consider Kriptomat a top EU exchange. I was very impressed by their comprehensive selection process, it proved to me that they care deeply about their users and want to give them the best options possible.
CEO and Co-founder at Enjin
We feel this is a fantastic opportunity and perfect match for our technology. Kriptomat is a great product, built by an experienced team with a superb track record and huge ambitions.
CEO of Desico
1st round info
22 May 2019
We want EVERYBODY to have a stake in the company and a share of the profits. We believe the new economy should be one where everyone has the opportunity to make a smart investment.
We aim to raise 30 mi EUR in the next three years.
The first round will take place in May 2019 via DESICO. They are an EU regulated Security Token Issuance platform.
*United States of America: accredited investors only.
Funding rounds planning
|Round one||Round two*||Round three*|
|Funding amount||€ 1.8 mi||€ 5-10 mi||To be decided|
|Open to||European Economic Area, Asia & USA||European Economic Area, Asia & USA||European Economic Area, Asia & USA|
|Start date||May 2019||Q4 2020||To be decided|
|Min. investment||€ 250||To be decided||To be decided|
* The execution and characteristics of planned rounds depends on the outcome of previous rounds. All characteristics are subject to change.
We’re passionate about creating the tools that will drive the future economy
Kriptomat CBDO Dejan Davidovic and Ethan Pierse link up for a talk about Security Token Offerings at the Adria FinTech Conference in Rovinj, Croatia.
Payments for the Kriptomat UAB Security Token Offering are open to the public, which means that you can now make your investment! Here’s how you can do it!
To bring this ambitious plan to life, Kriptomat has partnered up with DESICO, the EU compliant Issuance platform and launch a Security Token Offering.
There are hundreds of exchanges like this. How are you different?
It is important to distinguish between trading platforms (Kraken, Binance, Bitstamp, Huobi) and exchanges (Kriptomat, Coinbase, Luno, Coinmama). While most of these services are focused on experienced traders, we are focused on the emerging addressable market of newcomers.
Besides the simplicity to easily onboard newcomers and being an EU licensed service, we are pioneering gamification with a Blockchain Reward Program that will increase loyalty, boost Customer Lifetime Value (CLV) and accelerate user acquisition.
What problem do you solve for your customers or users? Who are they?
All innovations face resistance to adoption until they reach a critical mass of users, and crypto and digital assets are no different. Potential users fear the unknown and the unfamiliar.
The adoption of crypto and digital assets is hindered by three main issues:
- Buying digital currencies and building a personal portfolio is too complex – Kriptomat has a user-friendly mobile and web platform that feels ‘familiar’ even to new users.
- Using trading platforms to buy digital currencies is intimidating – Kriptomat offers a convenient and intuitive process to buy and sell 30 different digital currencies.
- Creating a secure wallet is too difficult for normal users – A built-in wallet, highly secure cold storage with controlled access to store and use digital assets on a regulated platform.
How accurately can you describe your customers or users and why they buy your products?
Our customers are everyday people that are interested in innovation and new trends but at the same are non-tech-savvy and looking for simple solutions.
They are a mixture of Early Adopters and Early Majority.
Early adopters like us because we make it easier to accept and introduce innovation to the general population and, having followed the market for some years, they understand the problem we are solving.
The Early Majority is a bigger customer base that started adopting our solution due to it being a licensed service and having a clear track record. We have gained their trust and we make it easy for them to use the innovation.
The Crypto market is dead, why should I invest in you?
“Paper money is going away. Crypto is a far better way to transfer value than pieces of paper, that’s for sure. The technology behind bitcoin is “quite brilliant” and “it seems like there is some merit to Ethereum and maybe some of the others.” Elon Musk
Bloomberg estimates the value of the crypto asset market needed to support economic activities to expand from ~$500bn in 2019 to $3.6tn in 2028.
We believe that the market of digital currencies is still evolving and we are focusing on the things that it does better than traditional finance, both in the financial and investment sectors.
How many users do you have?
Our user base has been growing organically by 20% month on month and we recently reached the important milestone of 10.000 registered users. Our next milestone is 100.000 users.
How many users are active ones?
Are you already making any revenue?
What is the company raising funds for?
With the funds raised from this STO, we plan to accelerate our growth across Europe, with a particular focus on the countries that are often forgotten. That’s why our app, website, and customer support are all already available in 24 languages.
In order to rapidly grow our user base, we will focus on evangelizing our brand, educating the general public, and marketing both Kriptomat and the new economy across the continent. Most of the funds will be spent for new user acquisition and, in the case of our business model, new users equals more revenue.
To build trust in Kriptomat and the digital economy, we will add more payment methods, improve our already industry-leading security measures, introduce insurance to our user base and continue to work with the EU on developing the framework for tomorrow’s economy.
Our product may already be great, but we believe that it can be even better. We will strive to improve usability and customer understanding while constantly adding integrations with other key digital platforms that will broaden the usage options of currencies for our customers.
Who is the founder?
What is your traction?
All the traction is happening organically. No advertising.
User base growth 20% month on month.
25% month on month growth in the number of transactions.
20% growth in the amount of funds deposited by our users.
If your organic growth is so good, why do you need to raise money?
How many users do you expect to acquire after the STO?
You are licensed in the EU. Do you operate globally or only in the EU?
What you are doing is just a new sort of ICO and money grab!
ICOs were sadly unregulated and did a lot of damage to the market. The Kriptomat token KRTEX will be a security token. Contrary to any utility token issued by the ICO, it will make investors eligible for profit and revenue share with Kriptomat.
Why didn’t you go for traditional investors? Seed, VC?
Secondly, we are an innovation-driven team and we love how innovative STO is in lowering the barrier of entry for investors in a legally compliant way. We are especially excited about the fact that investing opportunities that used to be available only to accredited and institutional investors now became available to retail investors.
However, we have also been also in the process of meeting with traditional investors. Unfortunately, we can’t disclose more at this time.
How are you planning to use the money raised and how will that increase the number of new clients?
The orientation of spending of the funds raised during the STO:
- 60% Growth – Marketing, customer base growth
- 18% Product development
- 12% Security, compliance
- 10% Operations, support
What is the difference between an ICO and an STO?
Hence, it is way easier to launch an ICO than STO. STO requires a company to do a lot of upfront compliance work as only entirely regulatory compliant companies can issue Security tokens.
The main advantages are:
- Investors actually acquire underlying assets that derive their value from something else.
- 100% regulated offerings that ensure investors security.
- Projects that go for STOs are generally more mature and trustworthy than the ones in the ICO sphere.
- STOs are experiencing significant growth while ICOs space shrinks.
- It is an ongoing trend.
- Security tokens are expected to be traded via broker-dealers who are also supervised by regulatory bodies.
- Security tokens are the next big step in traditional finance.
- Less speculation and market manipulation.
What is the minimum amount to invest?
What is the maximum amount to invest?
What happens if Kriptomat fails to fulfill its obligations?
What is the depository of the securities?
Who will account the ownership of the securities?
Will it be possible to trade the securities? When and where?
What blockchain will be used to tokenize the assets?
What will happen later when you release new tokens?
Will we be paid in fiat or in crypto?
How will the profits be distributed?
The first payment from profit shall be made after the first financial year after the end of the public offering (the first year is 2020). Subsequent payments will be made on a yearly basis.
What will happen if you get a big VC investment?
I’m a VC and want to invest but want an extra deal. How does it work?
Can US citizens participate and how?
Why did you open a new company for fundraising
We chose Lithuania as the country with the most advanced legislation when it comes to fin-tech and fundraising. In accordance with local legislation, we were to establish a new legal entity there. The relations and a joint venture between Kriptomat OU Estonia and Kriptomat UAB Lithuania are clearly disclosed in the offering document.
Financial results for 2018 are showing negative capital. Why is that?
Our financial results for the past year are typical for a start-up during the product development phase. We’ve spent almost the entirety of 2018 focused on putting in place the fundamentals of a new start-up, with particular emphasis on reaching essential growth milestones and proving the business model of the platform.
2018 may have been a bear market for cryptocurrencies, but it was a great year for development as the cryptocurrency industry underwent rapid changes in regulation and stabilization. It was also a year of advertising bans and the year that cryptocurrencies made their foray into mainstream financial markets — exciting yet turbulent times for the industry.
During the year we established the company, acquired licenses, developed a reliable and secure service, and worked on setting up the perfect environment for future growth.
By December we were ready to start working on user acquisition activities and developing partnerships (finance, blockchain). We believe this measured approach allowed us to prove that we know how to acquire new users and that our product environment is ready to process higher transaction volumes.