This presentation of Cypher Metaverse Inc. ("Cypher" or the "Company") is for information only and does not constitute an invitation or offer to buy, sell, issue or subscribe for, or the solicitation of an offer to buy, sell or issue, or subscribe for any securities. It has been provided solely to assist the recipient in evaluating the Company. This presentation is not, nor is it to be construed under any circumstances as a prospectus, a public offering of securities, or an offering memorandum as defined under any applicable securities legislation. This presentation does not contain all of the information that would normally appear in an offering document registered under applicable securities laws.
This presentation includes market and industry data obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third party sources referred to in this presentation or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying assumptions relied upon by such sources. The Company does not make any representation as to the accuracy or completeness of such information.
This presentation should not be construed as legal, financial or tax advice to any person, as each person's circumstances are different. Readers should consult with their own professional advisors regarding their particular circumstances. An investment in the securities of the Company is speculative and involves a number of risks that should be considered by a prospective investor. Neither the Company, nor any of its shareholders, directors, officers, agents, employees, consultants or advisers give, have given or have authority to give any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability, completeness or suitability of the information in this presentation or any other written or oral information made or to be made available to the interested party or its advisors.
This presentation does not constitute, and should not be construed as, an offer, invitation, solicitation or recommendation to buy or sell any of the securities of the Company nor will there be any sale of the Company's securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. In making an investment decision, investors must rely on their own examination of the Company, including the merits and risks involved. The Company's securities have not been approved or disapproved by the U.S. Securities and Exchange Commission or by any state securities commission or regulatory authority, nor have any of the foregoing authorities (or any Canadian provincial securities regulator) passed on the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense
FORWARD LOOKING STATEMENTS
This presentation contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation concerning the business, operations and financial performance and condition of the Company. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding future financial position, business strategy, forecasts, projections, corporate vision, proposed acquisitions, partnerships, joint-ventures, strategic alliances and co-operations, budgets, costs and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking
information can be identified by words such as "pro forma", "plans", "will", "expects", "may", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements are based on certain assumptions regarding the Company, including, without limitation, expected growth, results of operations, performance, industry trends, growth opportunities, and that the Company will be able to obtain the financing required to carry out its planned future business activities, retain and attract qualified personnel and obtain and/or maintain the necessary intellectual property rights it needs to carry out its future business activities.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include, among others, the ability of the Company to obtain sufficient financing to fund its business activities and plans, the continuation of executive and operating management or the non-disruptive replacement of them on competitive terms, failure to complete target acquisitions on the expected terms or at all, liabilities associated with acquired companies or assets, failure to protect the Company's intellectual property rights, failure to adequately evaluate its current business and future prospects, delays in obtaining governmental and regulatory approvals (including of any applicable stock exchange), permits or financing or in the completion of development or construction activities, risks relating to epidemics or pandemics such as COVID 19, including the impact of COVID 19 on the Company's business, financial condition and results of operations, changes in laws, regulations and policies affecting blockchain technology, hedging practices, currency fluctuations, limitations on insurance coverage and the timing and possible outcome of pending litigation and risks related to joint venture operations.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking information in this presentation or incorporated by reference herein, except as otherwise required by law.
CONFIDENTIAL INFORMATION
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INVESTOR RIGHTS
The following statutory rights of action for damages and rescission will only apply to a purchase of common shares in the event that this presentation is deemed to be an "offering memorandum" pursuant to applicable securities legislation in the Provinces of British Columbia, Alberta and Ontario. These remedies, or notice with respect to these remedies, must be exercised or delivered, as the case may be,
by the purchaser within the time limits prescribed by the applicable securities legislation. These rights are in addition to any other rights that purchasers of common shares may have at law.
Ontario
Securities legislation in Ontario provides an Ontario purchaser (other than (i) a "Canadian financial institution" or a "Schedule III bank" (each as defined in National Instrument 45-106 Prospectus Exemptions), (ii) the Business Development Bank of Canada, or (iii) a subsidiary of any person referred to in (i) or (ii) above, if the person owns all the voting securities of the subsidiary, except the voting securities required by law to be owned by the directors of that subsidiary) with a statutory right of action for damages or rescission against an issuer and any selling security holder where the related offering memorandum contains a misrepresentation without regard to whether the purchaser relied on the misrepresentation. The right of action for damages is exercisable not later than the earlier of 180 days from the date the purchaser first had knowledge of the facts giving rise to the cause of action and three years from the date on which payment is made for the securities. The right of action for rescission is exercisable not later than 180 days from the date on which payment is made for the securities. If a purchaser elects to exercise the right of action for rescission, the purchaser will have no right of action for damages against the issuer or any selling security holder. In no case will the amount recoverable in any action exceed the price at which the securities were offered to the purchaser and if the purchaser is shown to have purchased the securities with knowledge of the misrepresentation, the issuer and any selling security holder will have no liability. In the case of an action for damages, the issuer and any selling security holder will not be liable for all or any portion of the damages that are proven to not represent the depreciation in value of the securities as a result of the misrepresentation relied upon.
Alberta and British Columbia
The securities legislation in the provinces of Alberta and British Columbia do not provide or require the Company to provide to purchasers resident in Alberta and British Columbia, any rights of action in circumstances where this presentation or an amendment hereto contains a misrepresentation.
For additional information, contact:
CYPHER METAVERSE INC.
George Tsafalas, President Suite 1780, 355 Burrard Street, Vancouver, BC V6C 2G8 Tel: +1 (877) 806-CODE (2633) Website: www.Cypher.ventures
Email: ir@cypher.ventures
This Business Plan was prepared by:
CONCORD BUSINESS DEVELOPMENT INC.
500-666 Burrard Street
Vancouver, BC V6C 3P6 Canada
Tel: (604) 689-2556 Fax: (604) 689-7758
Website: www.concordbusiness.com
Email: info@concordbusiness.com
BUSINESS PLAN HIGHLIGHTS
Company Name Cypher Metaverse Inc. (Trading Symbol: CODE)
Business
Cypher Metaverse is focused on early stage investment in foundational technologies, such as blockchain, cryptocurrency, non-fungible tokens (NFTs) and decentralized finance (DeFi), in emerging digital environments (the metaverse).
Products
Market Opportunity
Market Size
Cypher has interests in non-fungible tokens and blockchain – the technology infrastructure of the metaverse. The Company is also invested in land in the metaverse and related digital assets.
The global metaverse market is forecast to grow at a CAGR of 41.7% from 2021 to 2030. 1
While the metaverse is not yet clearly defined, Bloomberg defines the metaverse as a combination of gaming hardware, gaming software, digital advertising and live experiences in digital worlds. According to this definition, the metaverse was worth approximately $478.7 billion in 2020. 2
Financing Sought $15,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$(20,000,000) $-
TOTAL REVENUES & OPERATING INCOME
Total Revenues Operating Income (EBITDA)
1 14 Dec 2021, Market Research Future (MRFR), Metaverse Market Worth USD 21.91 Billion In 2020 and is Predicted to Grow at 41.7% CAGR by 2030, https://www.globenewswire.com/news-release/2021/12/14/2351695/0/en/Metaverse-Market-Worth-USD-21-91Billion-In-2020-and-is-Predicted-to-Grow-at-41-7-CAGR-by-2030-Report-by-Market-Research-Future-MRFR.html
2 Raisinghani, 20 Dec 2021, GDA Capital, How Big Is the Metaverse?, https://gda.capital/2021/12/20/how-big-is-themetaverse/#:~:text=According%20to%20this%20definition%2C%20the,industry%20in%20the%20United%20States.
Non Fungible Tokens (NFTs) DeFi (Decentralized Finance)
METAVERSE
FOUNDATIONAL TECHNOLOGIES
Enable progress & applications.
Digital Currency Virtual/Augmented Reality Blockchain
The Metaverse is a natural progression in society’s digital journey.
1 Executive Summary
1.1 Company Description
Cypher Metaverse Inc. ("Cypher", “CODE” or the "Company") is a technology investment firm focused on foundational technologies, like blockchain, cryptocurrency, non-fungible tokens (NFTs) and decentralized finance (DeFi), in emerging digital environments. Billion dollar investments by the world’s largest companies, Meta (formerly Facebook), Apple, Alphabet and others, in technologies and digital spaces of the future are powering Web3, the most significant technology revolution since the introduction of the world wide web With it comes an environment rich with opportunity for entrepreneurs and investors. The elite Cypher team of technology, business and financial experts are vanguards in society’s digitization leveraging a deep insight into metaverse technologies to connect investors to this exciting disruptive, new asset class
Web3 will fuel an entirely new, trillion dollar industry. The metaverse is an immersive, 360-degree digital world where people learn, work, play, create, and socialize as avatars. The metaverse will create global leaders – companies and people – just as Amazon, Facebook and Shopify, at one time visions, emerged from the last tech wave Cryptocurrencies, non-fungible tokens (NFTs) and blockchain are parts of the technology infrastructure of the metaverse. Decentralized finance, virtual and augmented reality and more bring people into the metaverse supporting their experiences and commerce. In these new digital worlds, consumers outfit their avatars in popular brands, compete for original art - verified by NFTs, and acquire land in select locations to establish virtual homes and businesses.
Cypher investments are designed to accelerate the aggregate development of the sector through access to capital markets, while creating long-term shareholder value from early stage investment. The Company’s strength is their big picture view of the technology landscape. Through this lens the interrelatedness of technologies expose companies and technologies positioned to realize sustainable, exponential growth. The layering of technologies open immense opportunities revealed only from a dynamic, big picture focus and constant oversight. Cypher’s strategic, early stage investments in the metaverse and related technologies diversify portfolios with future focused, globally relevant tech sectors. Investors are exposed to a completely new asset class without the stress of navigating technically complex direct investment channels or acquiring a macro understanding of emerging technological universes.
1.2 Market Opportunity
The internet’s value to the world economy is incalculable. Internet-native companies such as the FANG stocks Facebook, Amazon, Netflix and Google are among the largest and most influential in human history. Web3 is predicted to be as disruptive as this.
While the metaverse is not yet clearly defined, Bloomberg defines the metaverse as a combination of gaming hardware, gaming software, digital advertising and live experiences in digital worlds. According to this definition, the metaverse was worth roughly $478.7 billion in 2020. 3 Firm ‘Market Research Future, predicts the global metaverse market will grow at a CAGR of 41.7% from 2021 to 2030. 4
CEO Mark Zuckerberg noted on the company's third-quarter conference call Meta Platforms (formerly Facebook) would spend $10 billion on the metaverse in 2021. 5 Microsoft’s (MSFT) recent $70 billion acquisition of Activision Blizzard (ATVI) was a major “metaverse play”, along with moves by Nike (NKE) and Adidas (ADDYY). Recent patent filings by Walmart (WMT) suggest the retailer may be embarking on a foray into metaverse technology.
Bill Gates believes in the next “two or three years,” most virtual meetings will move from twodimensional, Zoom-style interfaces to the metaverse. “… we’re approaching a threshold where the technology begins to truly replicate the experience of being together in the office,” he said. Gates adds Microsoft is set to release its own “interim” VR tools next year in conjunction with a planned virtual workspace, Mesh for Microsoft Teams. 6
3 Raisinghani, 20 Dec 2021, GDA Capital, How Big Is the Metaverse?, https://gda.capital/2021/12/20/how-big-is-themetaverse/#:~:text=According%20to%20this%20definition%2C%20the,industry%20in%20the%20United%20States.
4 14 Dec 2021, Market Research Future (MRFR), Metaverse Market Worth USD 21.91 Billion In 2020 and is Predicted to Grow at 41.7% CAGR by 2030, https://www.globenewswire.com/news-release/2021/12/14/2351695/0/en/Metaverse-Market-Worth-USD-21-91Billion-In-2020-and-is-Predicted-to-Grow-at-41-7-CAGR-by-2030-Report-by-Market-Research-Future-MRFR.html
5 Williams, S., 14 Dec 2021, The Motley Fool, The Single Biggest Question That'll Determine the Future of the $30 Trillion Metaverse, https://www.fool.com/investing/2021/12/14/question-determine-future-of-30-trillion-metaverse/
6 Gates, B., 7 Dec 2021, GatesNotes, Reasons for optimism after a difficult year, https://www.gatesnotes.com/About-Bill-Gates/Year-inReview-2021
With respect to hardware, by 2025, the total value of augmented and virtual reality products, including the Oculus, is forecast to hit $36 billion, according to market research firm International Data Corporation (IDC). That will be a ninefold increase from $4 billion in 2021, representing an incredible compound annual growth rate (CAGR) of 68%. 7
The Blockchain market size is projected to grow from USD 4.9 billion in 2021 to USD 67.4 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 68.4%. 8 The major driving factors contributing to the high growth rate of blockchain market include increasing venture capital fundings and investment in blockchain technology; extensive use of blockchain solutions in banking and cybersecurity; high adoption of blockchain solutions for payment, smart contracts, and digital identities; and rising government initiatives.
The combined wealth of the top six technology billionaires, Musk (PayPal), Bezos & Scott (Amazon), Zuckerberg (Facebook), and Page & Brin, (Google) is almost half the nominal GDP of Canada. It is more than the GDP of all but 19 countries in the world exceeding Switzerland, Poland, Taiwan, Belgium, Austria, etc. 9 Web3 will fuel similar wealth.
7 Holmes, F., 20 Oct 2021, Forbes, The Metaverse Is A $1 Trillion Revenue Opportunity. Here’s How To Invest..., https://www.forbes.com/sites/greatspeculations/2021/12/20/the-metaverse-is-a-1-trillion-revenue-opportunity-heres-how-toinvest/?sh=35e250c04df9
8 16 Dec 2021, Research and Markets, Global Blockchain Market Report 2021: Market Size is Projected to Grow from $4.9 Billion in 2021 to $67.4 Billion by 2026, at a CAGR of 68.4%, https://www.globenewswire.com/newsrelease/2021/12/16/2353499/28124/en/Global-Blockchain-Market-Report-2021-Market-Size-is-Projected-to-Grow-from-4-9-Billionin-2021-to-67-4-Billion-by-2026-at-a-CAGR-of-68-4.html#:~:text=filingsmedia%20partners,Global%20Blockchain%20Market%20Report%202021%3A%20Market%20Size%20is%20Projected%20to,at%20a%20CAGR%20of% 2068.4%25&text=16%2C%202021%20(GLOBE%20NEWSWIRE),added%20to%20ResearchAndMarkets.com's%20offering.
9 World Population Review, GDP Ranked by Country 2021, https://worldpopulationreview.com/countries/countries-by-gdp
1.3 Capital Requirements
1.3.1 Use of Proceeds
REQUIREMENT
1.4 Financial Summary
1.5 Return on Investment
2 Corporate Overview
2.1 Corporate Data
CYPHER METAVERSE CORPORATE DATA
Corporate Name Cypher Metaverse Inc.
Date of Incorporation February 19, 2009
Country of Incorporation Canada
Incorporation Number BC0981737
Principal Business Address Suite 1780, 355 Burrard Street, Vancouver, BC V6C 2G8
Telephone +1 (877) 806-CODE (2633)
Email ir@cypher.ventures
Website https://www.cypher.ventures/
Legal Counsel Dentons – Rick Skieth
Auditor PKF Antares Calgary
CEO George Tsafalas
Directors George Tsafalas, Brian Keane, Harrison Ross
Advisory to the Board Jake Chernoff, Jeff Koyen, Manan Mehta, Laurent Zhang
Management George Tsafalas, CEO, Tatiana Kovaleva, CFO
Fashion company Ralph Lauren teamed with online game platform Roblox to launch an exclusive "Winter Escape" collection. The first-of-its-kind , holiday-themed experience allows fashion fans to explore (and purchase – using NFTs) the world of Ralph Lauren through the metaverse.
2.2 Board & Leadership Team
GEORGE TSAFALAS | PRESIDENT, CHIEF EXECUTIVE OFFICER, DIRECTOR
Mr. George Tsafalas has extensive experience in senior operational management, corporate business development and corporate finance in the private and public sectors. Mr. Tsafalas specializes in the execution of strategic budget plans and monitors the development of the portfolio programs, including review of the financial objectives and milestones. Mr. Tsafalas’ depth of experience in raising capital spans from angel investment groups to private equity capital firms. As an entrepreneur and Senior Executive for multiple private and public companies, Mr. Tsafalas has served as President and Chief Executive Officer, Chief Financial Officer, Executive Member of the Board of Directors and Chair of the Audit Committee.
Mr. Tsafalas has served the following positions: President, Chief Executive Officer & Director at Cypher Metaverse Inc.; President, Chief Executive Officer and Director of AQXP Inc.; Chief Financial Officer for Eupraxia Pharmaceuticals, Inc.; Chief Financial Officer & Director at Birch Lake Energy, Inc.; and Chief Financial Officer at Birch Lake Capital, Inc. (a subsidiary of Birch Lake Energy Inc.); President, Chief Executive Officer & Director at Giant Exploration, Inc.; and, Chief Operating & Financial Officer & Director at Canadian Energy Exploration, Inc.
TATIANA KOVALEVA | CHIEF FINANCIAL OFFICER
Ms. Tatiana Kovaleva is a Vancouver based Finance Executive with international and trans-border expertise and credentials as a CPA. Ms. Kovaleva has experience in Capital Markets where, for over twenty years, she has served in multiple capacities including Chief Financial Officer for publicly traded companies such as M Pharmaceutical Inc., Supreme Pharmaceutical Inc. and 360 Blockchain Inc.
Serving in the roles of Chief Financial Officer and Corporate Director, Ms. Kovaleva has utilized her specialized executive management experience in public company financial planning and a demonstrated a successful history with timely and accurate financial forecasting, budgeting, reporting and consolidations, IFRS and GAAP Accounting.
LAURENT ZHANG | TECHNOLOGY ADVISOR
Laurent Zhang is the President of Capital block Tech and founder of Arcology. He got his B.Sc. Degree in Computing from Oxford Brookes University, M.Sc. in Intelligent systems. Mr. Zhang previously worked as senior research engineer and managers at MKS instrument Inc, University of Alberta and Baker Hughes. He has experience in solving large-scale real-world applications with creative solutions. He is an expert in artificial intelligence, distributed computation and distributed ledger technologies.
Brian D. Keane, J.D., B Sc, Director, has over 20 years of capital markets, investing and C-level consulting experience with 100+ emerging growth companies in the USA, Canada, Caribbean and Asia, transacting over $2.5 billion in investment value. He currently serves as Director at 360 Blockchain Inc. CSE:CODE, is President of Qualified Capital Consultants, Founder of 420 Syndicate, LLC, Consultant to Stadnyk and Partners Family Office, and Advisor to Proactive Investors UK Limited Most recently, He served as Director at 1933 Industries Inc. CSE:TGIF and was Interim CEO at Callitas Health Inc. CSE:LILY. Previously, Brian had roles at Merriman Capital, Andrews Securities/Keating Capital, Four Springs Capital, Deutsche Bank, Rodman and Renshaw/Ladenburg Thalmann & Co/Techvest, and YA Global. He began his career at NDB Capital Group's (NYSE:NDB) Equity Trading Desk and has held Licenses Series 7, 63,55,79. He earned a JD from New York Law School and a B Sc. from the University of Scranton.
Harrison Ross is an innovative finance professional with over 8 years of experience in both public and private capital markets, enhanced by a strong background in corporate finance and developing business strategies that maximize ROIs.
Mr. Ross served as CFO for DC Acquisition Corp, Capital Pool Company on the TSX.V, raised in excess of $2.5 million. He is the current CFO at Health Logic Interactive, a pioneering point of care health technology company at the forefront of chronic kidney disease testing His background includes years as a public and private capital market finance professional having co-managed over $500 million at Duncan Ross Associates and served as an analyst at Belkorp Industries.
2.3.2 Advisory to the Board
JACOB CHERNOFF
Jacob Chernoff joined Cypher Metaverse in March 2021 to assist with ongoing investments and operations within the Bitcoin Mining and Blockchain ecosystem, as an Advisor Mr. Chernoff is a seasoned investor and entrepreneur, integrating aspects of traditional venture capital within the Blockchain and Cryptocurrency markets. With over six years of experience working with Blockchain developers and company management, Jacob is essential in Cypher's plans to explore and capitalize on emerging market trends within the Blockchain ecosystem. Jacob has worked with a number of public companies - evaluating and revising Blockchain-based business proposals, raising seed capital, and deconstructing complex technical aspects of Blockchain and cryptography.
Jeff Koyen is an award-winning journalist and entrepreneur. As a media strategist and advisor he has a proven record of launching new digital properties for both start-ups and legacy media companies. Jeff launched Pressland to map the global media supply chain of all media from initial concept to writer, editors, fact checker, and sources, until it reaches the reader. Jeff served as CEO and Founder of Assignmint.com, Editor in Chief of New York Press, Deputy Editor of Forbes Traveler, Editorial Director & Creative Strategist at Vocativ, and News Editor of Mansion Global (Dow Jones). As a journalist, his bylines have regularly appeared in the New York Times, The Guardian, New York Post, Wired, New York magazine, Crain’s New York Business and others.
MANAN MEHTA
Manan Mehta has a strong background in starting and developing technology companies. He is the CoFounder and CTO of Pattern, a supplier marketplace that connects businesses with gig workers. With over 50 employees and more than $10 million raised, Pattern customers include DHL, Zara, Radial, and Real Canadian Superstore.
Additionally, Mr. Mehta is a Senior Developer at Stripe, a technology company that builds economic infrastructure for the internet. Businesses of every size from new startups to public companies use its software to accept payments and manage their businesses online.
Previously, Manan Mehta was a Senior Blockchain Engineer for Fansunite - a sports and entertainment company, focusing on technology related to regulated and lawful online sports betting, esports betting, casino and fantasy.
Mr. Mehta is a graduate of the University of British Columbia, where he achieved a B.Sc. Computer Science. His vast knowledge within the technology sector includes experiences with Spark, Presto, Kafka, Flink and OLAP.
On January 20th, Twitter announced people who pay for Twitter Blue, a $3 per month subscription, will be able to change their profile picture to a non-fungible token (NFT). Doing so will change the shape of their photo from a circle to a hexagon verifying a linked NFT wallet.
2.4 Strategic Assets
2.4.1
Team
Cypher Metaverse recruited an elite team of technology thought leaders in the cryptocurrency, blockchain and Web3 spaces. Cypher synthesizes their knowledge, drive and experience to create an executive team of technology experts with the passion and vision of entrepreneurs wrapped in a deep understanding of the progressive digitization of society.
2.4.2
Timing
Cypher Metaverse owns strategic investments in several foundational Web3 technologies including; cryptocurrency (Bitcoin, Ethereum, and ERC20 tokens), a 30% interest in a layer 1 blockchain protocol, and non-fungible tokens (NFTs). As the world’s richest companies have pledged billions to Web3 product investments, and global brands are showing up in the metaverse, Cypher is prepared. Cypher Metaverse is mobilizing to expand its portfolio of strategic Web3 investments at a time when consumers and capital is flowing into digital currencies, NFTs, DeFi and all elements of the metaverse.
2.4.3
Strategic Investments
Cypher Metaverse holds investments in several key sectors, technologies and companies:
Arcology is a blockchain specifically designed for high performance Web3 applications Arcology is the world’s first dynamic, hierarchical, blockchain. It boasts enterprise-grade transaction speeds and scalability, and highly competitive transaction costs, ideal for commercial use at scale. To drive industry adoption, Arcology offers interoperable developer environment
Metaverse – Yuga Labs
From the creators of Bored Ape Yacht Club, Otherside is a gamified, interoperable metaverse currently under development. The game blends mechanics from massively multiplayer online role-playing games (MMORPGs) and web3-enabled virtual worlds. Think of it as a metaRPG where the players own the world, NFTs can become playable characters, and thousands can play together in real time. Otherside is under development by Yuga Labs, home of Bored Ape Yacht Club, Mutant Ape Yacht Club, Otherside, Cryptopunks. In March 2022 Yuga Labs raised $450M USD valuing the company at $4 Billion 10
The Sandbox is a community-driven platform where creators can monetize voxel assets and gaming experiences on the blockchain. The Sandbox metaverse comprises a map made up of 166,464 LANDS. LAND owners can host contests and events, stake SAND to earn and customize assets, monetize assets and experiences, vote in the metaverse governance, play games that you or others create, and more. The Sandbox is under development by Animoca Brands which raised nearly $360 million at a $5.5 billion dollar valuation in January 2022. 11
Cypher Metaverse targets strategic investments in firms with outstanding talent, technology and vision. The Company seeks early-stage opportunities at the convergence of technology and digital environments.
Leveraging the highly specialized knowledge and expertise of the Cypher Metaverse investment team, CODE investors gain a position in the imminent, next tech boom Web3 Cypher’s strategic investments in digital currencies, blockchain, non-fungible tokens (NFTs) and the metaverse diversify portfolios with future focused, globally relevant tech sectors. Investors are exposed to a completely new asset class without the stress of navigating technically complex direct investment channels or acquiring a macro understanding of technological universes.
Cypher investments are designed to accelerate the aggregate development of the sector through access to capital markets, while creating long-term shareholder value from early stage investment
Cypher Metaverse invests in and prioritizes product planning, research & development, and recruitment to achieve and maintain competitive advantages in investment strategies and target sectors. To-date, the Company is not currently actively involved in technology development or deployment in invested firms but plans to participate with technical and industry expertise more in the future.
2.6 Business Roadmap
In 2022, Cypher Metaverse plans to:
1. Continue development and commercialization of Arcology
2. Purchase additional metaverse land and develop immersive experiences
3. Launch NFT drop/project(s)
4. Expand portfolio of Crypto tokens held with an emphasis on DeFi protocols
5. Evaluate other investments, alliances, and opportunities
Arcology may launch sales of enterprise blockchain software in 2022. Expansion plans for 2022:
• Launch NFT drop/project
• Create Metaverse Experience
• Expand portfolio of Crypto tokens held
• Evaluate other investments, alliances and opportunities
2.7 Investments
2.7.1 Cypher Blockchain Interests
Arcology is a blockchain specifically designed for high performance Web3 applications.
Arocology will participate in the decentralized finance or DeFi industry offering the:
1. World’s first dynamic, hierarchical blockchain
2. Enterprise-grade transaction speeds and scalability
3. Interoperable developer environment to drive industry adoption.
4. Highly competitive transaction costs, ideal for commercial use at scale
Arcology’s next generation blockchain is ideal for:
• Multiplayer games, user reward programs, event ticketers and other services that cannot tolerate downtime risk
• Decentralized applications (dApps) that require speed and scale
• Global enterprises not served by current blockchain products
• Transitioning large active user bases from centralized platforms to a decentralized environment
2.7.2 Non-Fungible Token Assets
Cypher has acquired strategically located land parcels in the Sandbox Metaverse and intends to develop interactive experiences and events to engage with users in the Sandbox. The Company has also acquired a portfolio of Otherside Metaverse Land Parcels knows as “Otherdeeds.” From the creators of Bored Ape Yacht Club, Otherside is a gamified, interoperable metaverse currently under development. The game blends mechanics from massively multiplayer online role-playing games (MMORPGs) and web3-enabled virtual worlds. Additionally, the Company continues to evaluate market trends as it works towards identifying further investment opportunities in assets and companies involved in, or related, to the metaverse.
3 Market & Industry Analysis
3.1 Underlying Technology
Similar to how the internet dramatically changed how people interact and conduct business, DeFi and blockchain technology will do the same for traditional finance in the future. As Blockchain technology continues to become woven into the fabric of digital society, Cypher Metaverse believes this macro shift will accelerate in coming years. As such, Cypher continues to entrench itself within key areas of this sector.
Decentralized finance (DeFi) is an emerging segment of the cryptocurrency industry that represents a wide range of lending, trading and betting activities conducted almost entirely on blockchain networks using tokens as proceeds and collateral.
The theme of CODE’s investment strategy is financial technology or fintech. The Company is focused on three main technology sectors of fintech, DeFi or Decentralized Finance, NFT or Non-fungible Tokens and the Metaverse.
o DeFi (Decentralized Finance)
Total Value Locked represents the sum of all assets deposited in decentralized finance (DeFi) protocols earning rewards, interest, new coins and tokens, fixed income, etc.
Total Value Locked (TVL) $253.8 B January 2022
3.2 Industry Sectors – DeFi (Decentralized Finance)
3.2.1 DeFi Intro
Since the launch of Bitcoin in 2008, several major trends emerged within the blockchain industry that shifted the course of the entire ecosystem and broader financial economy. DeFi (Decentralized Finance) seeks to disintermediate finance through both familiar and new service arrangements.
DeFi leverages decentralized networks to transform traditional financial products into transparent protocols that run without intermediaries. DeFi is conducted on blockchain networks using tokens as proceeds and collateral. These services can be traditional – such as borrowing and lending, payments, money issuance, insurance, trading, and asset management – as well as entirely new and innovative, such as automated market makers (AMMs), staking programs, and yield farming.
A. SMART CONTRACTS
A smart contract is a self-executing contract with the terms of the agreement between the parties written in lines of code stored on a blockchain. The code is replicated across multiple blockchain nodes, therefore benefits from the security, permanence and immutability a blockchain offers.
At present, input parameters and execution steps for a smart contract must be specific and objective. If “x” occurs, then execute “y.” Smart contracts are not currently capable of determining subjective legal criteria. As blockchain is more widely adopted and more assets tokenized, smart contracts will become increasingly complex.
B. DECENTRALIZED APPLICATIONS (DAPPS)
Smart contracts are contained within DApps or Decentralized Applications. Seventy-five percent of DApps consist of a single smart contract. 12 There are DApps for every category, including finance, gaming, productivity and more.
Transient Network, an ecosystem built to facilitate and increase blockchain adoption, offers TSC-Core Dapp. TSC-Core Dapp enables anyone, anywhere, anytime, to create and manage smart contracts with no coding or tools. TSC Core’s transfer, deposit, and digital signature features enable users to create selfexecuting contracts for a variety of use cases such as start-up funding, rental agreements, invoices, will contracts, and much more.
12 Wu, K, et al, 3 Sept 2019, A First Look at Blockchain-based Decentralized Applications, https://arxiv.org/pdf/1909.00939.pdf
3.2.2 DeFi Market Size
At the beginning of 2022, DeFi Total Value Locked (TVL) reached $253 billion. 13 The Ethereum blockchain dominates the DeFi universe with 62.6% of the total value locked in decentralized finance 14 Eighty-five percent of all DeFi projects are on the Ethereum blockchain.
• DEFI MARKET POTENTIAL
The annualized protocol revenue in all DeFi protocols has been estimated at $5 billion, a fraction compared with the trillion dollar global financial services market. The global financial services market was forecast to be worth $22.5 trillion in 2021 and predicted to grow to $28.5 trillion by 2025; a CAGR of 6%. 15 Seizing a 1% market share of the TradFi market equates to 10x-ing current DeFi revenue. 16
• BLOCKCHAIN MARKET POTENTIAL
The Blockchain market size is projected to grow from USD 4.9 billion in 2021 to USD 67.4 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 68.4%. 17 The major driving factors contributing to the high growth rate of blockchain market include increasing venture capital fundings and investment in blockchain technology; extensive use of blockchain solutions in banking and cybersecurity; high adoption of blockchain solutions for payment, smart contracts, and digital identities; and rising government initiatives.
13 Tolkachev, A., 6 Nov 2021, Cointelegraph, DeFi can be 100 times larger than today in 5 years, https://cointelegraph.com/news/defican-be-100-times-larger-than-today-in-5-years
14 Redman, J., 15 Jan 2022, Bitcoin.com, Value Locked in Defi Jumps 2.3% in 7 Days, Ethereum NFT Sales Dominate, Fantom TVL Jumps 26%, https://news.bitcoin.com/value-locked-in-defi-jumps-2-3-in-7-days-ethereum-nft-sales-dominate-fantom-tvl-jumps-26/
15 31 Mar 2021, The Business Research Company, Financial Services Global Market Report 2021: COVID-19 Impact And Recovery To 2030, https://www.globenewswire.com/news-release/2021/03/31/2202641/0/en/Financial-Services-Global-Market-Report-2021COVID-19-Impact-And-Recovery-To-2030.html
16 Tolkachev, A., 6 Nov 2021, Cointelegraph, DeFi can be 100 times larger than today in 5 years, https://cointelegraph.com/news/defican-be-100-times-larger-than-today-in-5-years
17 16 Dec 2021, Research and Markets, Global Blockchain Market Report 2021: Market Size is Projected to Grow from $4.9 Billion in 2021 to $67.4 Billion by 2026, at a CAGR of 68.4%, https://www.globenewswire.com/newsrelease/2021/12/16/2353499/28124/en/Global-Blockchain-Market-Report-2021-Market-Size-is-Projected-to-Grow-from-4-9-Billionin-2021-to-67-4-Billion-by-2026-at-a-CAGR-of-68-4.html#:~:text=filingsmedia%20partners,Global%20Blockchain%20Market%20Report%202021%3A%20Market%20Size%20is%20Projected%20to,at%20a%20CAGR%20of% 2068.4%25&text=16%2C%202021%20(GLOBE%20NEWSWIRE),added%20to%20ResearchAndMarkets.com's%20offering.
3.2.3 Defi Future Outlook
DeFi may pose an existential threat to traditional finance (TradFi), however coexistence is a more likely model. Similar to fintech, to stay relevant and protect fees and other sources of revenue, banks and financial institutions will embrace DeFi integrating the sector into their offerings. With DeFi loans, banks could lend even more against deposits by selling loans to investors after they are made freeing space on their balance sheets for further lending.
Banks around the world are investing in blockchain and cryptocurrency. The most active investor in crypto and blockchain is Barclays, with 19 invested companies, followed by Citigroup (9), Goldman Sachs (8), J.P. Morgan Chase (7) and BNP Paribas (6). Meanwhile, investors active in the biggest funding rounds to date are Standard Chartered ($380 million over six rounds), BNY Mellon ($320.69 million from five rounds), Citigroup ($279.49 million from nine rounds), UBS Group ($266.2 million in five rounds) and BNP Paribas ($236.05 million from nine rounds). 18
Cryptocurrency and blockchain are the fastest growing fintech sectors at both early and late stage due to investors betting new technologies will usher in a future decentralized financial system. 19
There is abundant evidence, US banks are future-proofing their businesses by investing in cryptocurrency and blockchain.
• U.S. Bank, the fifth-biggest retail bank in the United States, opened a cryptocurrency custody service to money managers in late 2021. The offering helps investment managers store private keys for Bitcoin, Bitcoin cash and Litecoin with the help of sub-custodian NYDIG.
• Some U.S. bank customers will soon be able to buy, hold and sell bitcoin through their existing accounts. NYDIG, a subsidiary of $10 billion asset manager Stone Ridge, partnered with fintech giant Fidelity National Information Services to enable U.S. banks to offer bitcoin in the near future.
• Goldman recently began posting digital asset prices on its Marquee platform for large clients like hedge funds, preparing for a time when the bank will be able to support trading in cryptocurrencies.
18 Middleton, C., 17 Aug 2021, transformfinance.media, Banks investing big in crypto and blockchain, https://transformfinance.media/finance/banks-investing-big-in-crypto-and-blockchain/
19 Allred, D., 2021, Silicon Valley Bank, State of Fintech, https://www.svb.com/globalassets/library/managedassets/pdfs/svb-state-offintech-report-2021.pdf
Cypher Business Eco-systems
o Non-fungible Tokens
Digital Art NFT $69 million March 2021
he Bored Ape Yacht Club is a collection of NFT digital ape avatars
A Bored Ape NFT sold for 600 ETH, ($2.25 million) in September 2021.
3.3 Industry Sectors – Non-fungible Tokens (NFTs)
3.3.1 NFT Intro
Non-fungible tokens (NFTs) are one of the fastest-growing sectors in the crypto industry. As the world moves increasingly to a digital universe, the attributes of blockchain are harnessed to establish digital asset ownership in the form of nonfungible tokens. In contrast, bitcoin or other cryptocurrencies are fungible tokens. They can be exchanged or swapped and share the same value while non-fungible tokens are unique.
NFTs represent everything from virtual land parcels to artwork and ownership licenses. They help differentiate digital assets from one another to prove value or scarcity.
3.3.2 NFT Market Size
The still nascent market for non-fungible tokens had its best year (2021) on record, generating over $23 billion in trading volume far from less than $100 million recorded the prior year (2020), according to data from DappRadar. 20
Selling or acquiring NFTs involve not only the cost of the underlying asset but also generate sales commissions and a fee for minting a (non-fungible) token. Companies such as Nifty Gateway is working to bring NFTs to the general public by allowing users to purchase NFTs using a credit card instead of a cryptocurrency wallet which makes it much more accessible and less expensive.
20 Bambysheva, N., 23 Dec 2021, NFT Market Generated Over $23 Billion In Trading Volume In 2021, https://www.forbes.com/sites/ninabambysheva/2021/12/23/nfts-generated-over-23-billion-in-trading-volume-in2021/?sh=251ec1075f0a
3.3.3 NFT Future Outlook
For the time being, much of the attention around non-fungible tokens is focused on artwork, gaming and crypto collectibles. Their potential, however, is much wider; possible applications include copyright and intellectual property rights, ticketing, and the sale and trading of video games, music and movies.
NFTs are expected to be a key component of the metaverse. Metaverse platforms such as Decentraland and The Sandbox already make use of NFTs to represent plots of virtual land and in-game items such as avatar clothing. The next step toward a single, persistent metaverse will likely make use of NFTs' interoperability, enabling users to move virtual items between different metaverse platforms.
Cypher Business Eco-systems
• Metaverse
Analysts at Morgan Stanley the market for virtual luxury goods could be as large as $50 billion by 2030.
How Luxury Brands Are Making Money In The Metaverse
3.4 Industry
Sectors
– Metaverse
3.4.1
Metaverse Intro
The metaverse is an evolution of the internet described as an immersive, 360-degree digital world where people learn, work, play, create, and socialize as avatars. Virtual reality, augmented reality and 3D computing are foundational technologies behind the metaverse along with blockchain. Futurists envision the development of a 3D virtual world; one people enter wearing VR (Virtual Reality) headsets or AR (Augmented Reality) glasses. Meta's (Facebook) Ray-Ban Stories glasses are smart glasses equipped with cameras, microphones and speakers
3.4.2
Metaverse Market Size
While the metaverse is not yet clearly defined, Bloomberg defines the metaverse as a combination of gaming hardware, gaming software, digital advertising and live experiences in digital worlds. According to this definition, the metaverse was worth approximately $478.7 billion in 2020. 21
21 Raisinghani, 20 Dec 2021, GDA Capital, How Big Is the Metaverse?, https://gda.capital/2021/12/20/how-big-is-themetaverse/#:~:text=According%20to%20this%20definition%2C%20the,industry%20in%20the%20United%20States.
3.4.3 Metaverse Future Outlook
CEO Mark Zuckerberg noted on the company's third-quarter conference call Meta Platforms (formerly Facebook) would spend $10 billion on the metaverse in 2021. 22 Microsoft’s (MSFT) recent $70 billion acquisition of Activision Blizzard (ATVI) is considered a “metaverse play”, along with moves by Nike (NKE) and Adidas (ADDYY). Recent patent filings by Walmart (WMT) suggests the retailer may be joining Meta (FB) and Apple (AAPL) in embarking on a foray into metaverse technology.
The metaverse is the obvious answer to many scenarios especially in the shadow of the COVID-19 pandemic. Some employees are still reluctant to return to in-person work. Employers are concerned that corporate cultures are eroding because of remote work. The very obvious solution is metaverse offices, where employees feel safer, and employers can enforce corporate culture. In this and many other scenarios, where the metaverse represents more than entertainment and socializing, will drive opportunities within business and industry.
3.4.4 Cypher Metaverse Interests
People and companies are investing in virtual real estate and other non fungible token-related digital assets in the metaverse. In Decentraland a virtual world where visitors watch concerts, visit art galleries, and gamble in casinos land sells for hundreds of thousands of dollars in MANA, a cryptocurrency. The most expensive locations are near where users congregate recently $450,000 was paid to be Snoop Dogg’s neighbour in the virtual world called the Sandbox.
Cypher has acquired strategically located land parcels in the Sandbox Metaverse and intends to develop interactive experiences and events to engage with users in the Sandbox. The Company has also acquired a portfolio of Otherside Metaverse Land Parcels knows as “Otherdeeds.” From the creators of Bored Ape Yacht Club, Otherside is a gamified, interoperable metaverse currently under development. The game blends mechanics from massively multiplayer online role-playing games (MMORPGs) and web3enabled virtual worlds. Additionally, the Company continues to evaluate market trends as it works towards identifying further investment opportunities in assets and companies involved in, or related, to the metaverse.
22 Williams, S., 14 Dec 2021, The Motley Fool, The Single Biggest Question That'll Determine the Future of the $30 Trillion Metaverse, https://www.fool.com/investing/2021/12/14/question-determine-future-of-30-trillion-metaverse/
4 Competitive Analysis
4.1 Competitive Environment
Cypher is an early mover in the blockchain, DeFi, NFT and metaverse sectors. DeFi and NFT technology sectors are, in a broad sense, emerging however they are also established with the path to profitability demonstrated. When these technologies symbiotically combine with blockchain, VR, AR, digital currencies and others, to form the foundation of the metaverse opportunities will grow exponentially and capital will flow into the sector.
Metaverse
Cypher Metaverse is ideally positioned to capitalize on the impending market growth as consumers move from Early Adopters to the Early Majority on the product adoption curve. (diagram)
This is a critical stage where growth and profit opportunities are greatest, and companies establish positions as industry leaders.
4.2 Competitors
Emerging technology sectors often have no clear leaders or incumbents. As consumers flock to the virtual worlds’ technology companies are creating the opportunities are abundant. As the sector matures and consumer preferences are known, some protocols and platforms will be more widely adopted, however competitors will morph and change to reflect consumer preferences while achieving success and differentiating in other ways.
HIVE Blockchain Technologies was the first publicly traded crypto miner, listing on the Toronto Venture Exchange in 2017, under the ticker symbol HIVE. The company uses 100% green energy to mine both Bitcoin and Ethereum. Several other cryptocurrency mining businesses have since gone public and a number of bitcoin Exchange Traded Funds (ETFs) were recently listed
Facebook’s name change to Meta, alongside the company’s Q3 announcement it would spend $10 billion on its metaverse unit in 2021, was considered a turning point on Wall Street for the metaverse. The world’s largest companies Apple, Snapchat, Samsung, and Microsoft have joined Meta investing in developing metaverse hardware – AR and VR devices and developer tools. Many large and successful game and design platforms such as Roblox, Nvidia, Unity, and Epic are also investing in the metaverse throughout the value chain of technologies – hardware and software
In mid January 2022, Defi Technologies announced the company had made a block purchase of $WILD tokens, the native token of Wilder World, an immersive 5D Metaverse built on Ethereum, Unreal Engine 5 and open protocol ZERO. Wilder World aims to create the world's leading metaverse and virtual economy that is decentralized and self-sustainable. The platform is a decentralized ecosystem that includes DAOs, a token economy, a social platform, and a marketplace that connects artists, gamers, collectors, and crypto enthusiasts who can roam freely in multi-leveled, photorealistic, and mixed reality worlds.
Since Wilder World's launch in Summer 2021, the ecosystem has generated over $15M from NFT sales and the native token, $WILD, has peaked over 100x since its launch in May of 2021. 23
23 19 Jan 2022, Cision, DeFi Technologies Announces Block Token Purchase in Wilder World, an Immersive Decentralised 5D Metaverse, https://www.newswire.ca/news-releases/defi-technologies-announces-block-token-purchase-in-wilder-world-an-immersivedecentralised-5d-metaverse-858973149.html
5 Marketing Strategy
5.1 Target Markets
The technology adoption curve (below) displays the order and mass of the market related to new technologies. Cryptocurrencies, blockchain, NFTs, DeFi and the metaverse are emerging technologies and digital environments. Participants are considered Innovators and influencers. While Cypher Metaverse will target and develop the Innovators market it is also important to stimulate primary demand with Early Adopters and Pragmatists.
Primary demands is when the goal of promotion and advertising is to educate consumers about the benefits of an entire product class, rather than influencing the market’s choice of a specific brand among multiple offers. Stimulating primary demand brings new consumers to the product category accelerating growth in the segment by moving more quickly into the increasingly profitable stages of Early Adopters and Pragmatists.
When stimulating primary demand Cypher will have carefully targeted Marketing & Communications strategies in place. This will generate the maximum brand, reputation, and demand returns.
5.2 Target Communities
Cypher Metaverse addresses multiple market segments each with varying degrees of understanding of the metaverse, cryptocurrency, blockchain and related technologies or sectors. Brand building is critical within all the technical and non-technical communities surrounding Cypher, however the disparity in understanding complicates communications Cypher recognizes the complex Marketing & Communications landscape, as well as the importance to effectively communicate with each target market to achieve the benefits of early entry, maximize investment potential and position the Company for future growth and sustainability
Wide range of technical or sector knowledge
Technology Development
Communities
Strategic communica�ons with relevant communi�es in the business environment is a priority for Cypher Metaverse Poten�al benefits include:
Crypto , Blockchain, DeFi , Metaverse
Financial Markets
Stakeholders
• Strategic Alliances & Rela�onships
• Early recogni�on of threats & opportuni�es .
• Advocate for Industry & Company
• Brand Build
• Influence
• Monitor Regulatory Environment
• Recruitment
• Reputa�on Management
• Research & Development
5.3 Demand
When designing Marketing & Communications programs understanding consumer motivation is vital The chart below illustrates how emotions play a significant role in enticing new investors into the cryptocurrency market.
Consumers also report being influenced by friends, family and social media personalities. Insights such as these influence promotional content, context and channel to realize the highest returns from marketing investments.
5.4 Communications Strategy
5.4.1
Content Marketing
Content Marketing is one of the most important marketing strategies a company can use and a cornerstone of inbound marketing. Content Marketing involves the development and deployment of content assets (text, images, videos, etc.) across digital channels including social media, blog, podcasts and webinars to:
• Become recognized as an informed authority.
• Educate the market about technologies, applications and the Company.
• Segment the audience and drive target visitors to selective content to boost conversations and build reputation and advocacy.
• Establish relationships with target communities/industry/Government/media.
• Connect with audiences and investors communicating the unique value proposition and building the brand.
• Demonstrate technologies and applications to attract Sales, Research & Development opportunities, financing and strategic alliances.
• Generate leads and prospects.
• Create and engage multiple strategic communities.
Content Marketing is an important strategy for Cypher Metaverse in all target markets and communities. To successfully implement a Content Marketing program, Cypher will ensure all steps in the funnel are integrated and carefully designed to achieve target outcomes with specific audiences.
5.4.2 Influencers
At a fundamental level, influencer marketing is a type of marketing, online or offline, that uses endorsements and product mentions from individuals with a dedicated social or professional following or are viewed as experts within a sector. Influencer marketing works because of the high amount of trust social influencers build with their following. Their recommendations serve as a form of social proof of a company’s brand.
5.5 Online Marketing
Cypher operates in highly advanced digital environments with digitally savvy audiences. This demands the Company be deeply immersed in the industry and user environments, capable of communicating effectively and understanding the strategic implications of relationships and interconnections.
Interest in the metaverse and related technologies is accelerating as evidenced by the following milestones 24:
1. Top-tier media are all in. Forbes has a weekly round-up covering all corners of the metaverse news written by tech futurist and metaverse strategist, Cathy Hackl.
2. Chief Metaverse Officer and other metaverse titles. Search LinkedIn for the keyword “metaverse,” and you will find about 2700 results of people using metaverse in their profile title, headline, or experience.
3. Google News shows 175,000 search results for the keyword “metaverse news.”
4. On Twitter, #metaverse gets about 500+/- Tweets an hour depending on the news cycle.
5. Instagram shows more than 43K posts using #metaverse. Once known as a mobile photo-sharing app, Instagram insiders hint at a shift from photos to videos as the charge towards the metaverse marches on.
These show there is a strong appetite for information about the metaverse and related technologies This is an important time for Cypher to participate in these sectors across media types to achieve Marketing & Communications goals.
24 Buyer, L., 25 Aug 2021, Search Engine Journal, Marketing in the Metaverse: The Future of Search & Social, https://www.searchenginejournal.com/marketing-in-the-metaverse/416813/#close
5.5.1 Web & Mobile
Due to the disparity in technology understanding among target audiences, Cypher must create unique digital experiences relative to the audience’s experience, technical understanding and intentions. Cypher will design digital experiences that are interactive with timely references demonstrating an insider’s knowledge of the technologies, industries and insider community.
CODE will deploy a customized online presence and User Experience (UX) for each target segment. This is accomplished by using personas, UX professionals and online funnels. Funnels channel visitors through unique paths depending upon prequalifying actions visitors engage with to self-select their digital journey.
Along with the corporate website, stand-alone landing pages dedicated to each technological universe will be developed. Keywords appropriate to each unique line of business, application, industry and customer type will be used to leverage SEO (Search Engine Optimization) strategies across digital content.
1. Cypher Metaverse’ Web Development Plan includes the following strategies:
a. Responsive web design
b. Attractive, appealing and user-friendly design
c. Sophisticated content demonstrating a sophisticated and current understanding of each technological universe relative to the audience segment, i.e. financial markets.
d. Utilization of UX/UI best practices
e. Web content designed to customer personas to ensure alignment of language (i.e., technology) and knowledge with target audiences.
f. Sophisticated data capture to quantitatively measure audiences and navigation channels and create qualitative profiles of visitors to Cypher Metaverse’ digital channels.
g. Online conversion funnels with a full sequence of ‘Calls to Action’ (CTA’s) to Illicit responses and:
i. Move visitors through progressive steps that grow their understanding of the technologies and engagement with the Company.
ii. Educate visitors and build advocacy for the technological environments, products and company.
iii. Online funnel(s) leading to conversion – i.e. request more information, connect personally with Cypher Metaverse.
5.5.2 Social Media
Cypher will use social media channels to achieve brand building, reputation management, recruitment, influence and strategic relationship goals. Cypher Metaverse will publish original content as well as share and engage with external content. The Company’s strategy to share relevant and related content accomplishes the multiple goals of publicity and engagement, as well as keeping up to date with industry developments and networking with influential people and companies
5.5.3 Marketing in the Metaverse
Using new technologies wrapping virtual reality around augmented reality, and artificial intelligence will become part of the digital marketing strategy of metaverse firms. Cypher will seek opportunities to leverage external platforms and partners to achieve its Marketing & Communications goals within target virtual environments.
5.6 Offline Marketing
Investor confidence is a key input in Cypher Venture’ purchase cycle. Strong, visible leadership is recognized as one of the most effective strategies for building market confidence. Cypher’s executive leadership will attend and participate in conferences, workshops and meetings dedicated or related to the target industry sectors, as well as create and host webinars, participate in media interviews and panels, and network with influencers.
Cypher Metaverse will measure investor interest in traditional, offline promotion campaigns. For example, Matthew Ball, a media analyst and co-founder of the metaverse Investment Fund Metaverse ATF (NYSE: META) published The Metaverse Primer, a primer in 9 free essays. 25 This is an example of offline marketing to stimulate primary demand.
25 Buyer, L., 25 Aug 2021, Search Engine Journal, Marketing in the Metaverse: The Future of Search & Social, https://www.searchenginejournal.com/marketing-in-the-metaverse/416813/#close
6 Financial Analysis
6.1 Revenue Summary
FINANCIAL SUMMARY
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$20,000,000 $40,000,000
$-
$(20,000,000)
TOTAL REVENUES & OPERATING INCOME
Total Revenues Operating Income (EBITDA)
PROFITABILITY & ROI
6.3 Income Statement
INCOME STATEMENT
$ 100 ,000 ,000
$ 80 ,000 ,000
$ 60 ,000 ,000
$ 40 ,000 ,000
$ 20 ,000 ,000
TOTAL REVENUES & NET INCOME
$ 120 ,000 ,000 Year 1 Year 2 Year 3 Year 4 Year 5
$ (20 ,000 ,000 ) $ -
Revenues Net Income
6.4 Balance Sheet
BALANCE SHEET STATEMENT
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
6.5 Cash Flow Statement
CASHFLOW STATEMENT
6.6 Benchmarks and Breakeven Analysis
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$-
6.9 Sensitivity Analysis
7 Bibliography
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