bitrush corporate update june 2016

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Cryptographic Technologies at Work Toronto │ London │ Vienna Stock Symbol CSE: BRH Frankfurt :0XSN Corporate Update, June 2016 www.bitrush.co Tomorrow‘s Leading Cryptographic Payment Services Provider

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Page 1: BitRush Corporate Update June 2016

Cryptographic Technologies at WorkToronto │ London │ ViennaStock Symbol CSE: BRHFrankfurt :0XSN

Corporate Update, June 2016www.bitrush.co

Tomorrow‘s LeadingCryptographic Payment

Services Provider

Page 2: BitRush Corporate Update June 2016

DISCLOSURE

This presentation is not an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anything in it shall form the basis of any contract or commitment. Securities may not be offered or sold in any jurisdiction absent available exemptions from applicable registration and prospectus requirements. The information contained in this presentation is based on information we believe to be reliable; however we do not represent that it is accurate, current, complete or error free. Assumptions, estimates and opinions contained in this document constitute our judgement as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past or current performance is not a guarantee of future results. We specifically disclaim all liability for any direct, indirect, consequential or other losses or damages including loss of profits incurred by a recipient of this presentation or any third party that may arise from any reliance on this document or for the reliability, accuracy, completeness or timeliness thereof.

Page 3: BitRush Corporate Update June 2016

The OpportunityThe Peer-to-Peer-Challenge

BitRush™: A Start-Up for the Masses

ANOON™ is a Universal Payment Platform thatintegrates Cryptocurrencies and their respectiveblockchains as well as FIAT Currencies and theirrespective payment systems into a simple to usedigital means of payment.

Cryptographic technologies, a Distributed LedgerArchitecture (DLA) and a comprehensive API Framework are used to integrate the FIAT Systems as well as blockchain services.

ANOON (Old English) adverb: immediately, at once, right away

Page 4: BitRush Corporate Update June 2016

The AccomplishmentsAfter 30 months and before Relaunch

up to 17 Million (M) Unique Users on more than5,000 connected Websites with upto 50 M micro/nano payment transactions/mth.

Redesign and integration into Visa/MC networks

Launch of ANOON Payment (June 2016)

ANOON Debit Cards available in June 2016

More than 60 leading trading and gaming brandsare to integrate ANOON as means of payment

Page 5: BitRush Corporate Update June 2016

The Transaction EcosphereThe Initial Ecosphere for Market Penetration

Gaming Partners & Affiliates13 M Unique Users (FIAT)

Business Partnershipscontinue to be developed

AdBit™ Ad Network> 7 M Unique Users/mth

WaggaWagga™ Gaming Portalup to 10 M Unique Users/mth

Page 6: BitRush Corporate Update June 2016

BitRush Develops Global Market CoverageBuilding a Global Ecosphere with Shareholders, Selective Acquisitions and Partnerships

VancouverNick Rathman

TorontoKarsten Arend

LondonWerner Boehm

KievAnna Lebedeva

ViennaJoachim Kalcher

Hong KongFranz Kozich-Koschitzky

SingaporeHansjoerg Wagner

BratislavaSven & Chris Wollner

We are global …

Page 7: BitRush Corporate Update June 2016

The BitRush Team "A Start-Up Built by Grown Ups" - Experienced Banking & Technology People

Werner BoehmCo-Founder, CEO

20 year banking & FinTech experience

Karsten ArendPresident, Director20 year cross industry &

Entrepreneurship experience

Joachim KalcherCo-Founder, CTO

20 year banking &Payment experience

Sven WollnerDirector (Start-it Ltd)

Tech Entrepreneur &Tech Investor

Chris WollnerDirector (Start-it Ltd)

Tech Entrepreneur &Tech Investor

Hansjoerg WagnerCo-Founder, Director

Team Leader Singapore

Tech Executive, Investor

Nick RathmanTeam Leader

VancouverAdBit & Blockchain

Development

Anna LebedevaTeam Leader Kiev

Blockchain & CryptocurrencyDevelopment

Hannes ZeitelbergerTeam Leader Vienna

Business DevelopmentPayment Services

Franz Kozich-Koschitzky

DirectorMarket Development, Asia

Page 8: BitRush Corporate Update June 2016

The Cryptographic ANOON Transaction NetworkNumbers from the ever Evolving ANOON Ecosphere, scheduled for end of June 2016

Targeting more than 30 Million Unique Users in the Ecosphere• 30 Million Unique Users/mth on more than 50 connected Websites• 20,000 Registered Users on land-based Gaming Machines (i.e. on the future ANOON ATM Network)

Up to 80 Million Payment Related Transactions per month• Up to 50 Million Cryptocurrency Micro-Payment Transactions• Up to 50 Million fiat (Real) Money Related Payment Transactions (trading, gaming, betting)

More than 2,000 cryptographic ANOON ATMs connected

• Partnership with CryptoTec and their ecosphere• Land-based casino terminals become POS and ATMs for the ANOON Ecosphere

Over 5,000 Websites are connected to the ANOON Ecosphere via our AdBit Ad Network

More than 60 Gaming & Casino Brands to be connected by end of July

Page 9: BitRush Corporate Update June 2016

The BitRush Roadmap to ANOON The Evolution from Bitcoins to Blockchain Technology to a Universal Payment System

Bitcoin as

Cryptocurrencyfor Micro-Payments

Bitcoin as Technologyfor Peer-to-Peer

Business(Blockchain)

CryptographicTechnologies for

Efficient real-timePayment & Clearing

(Private Sidechain withPatent Pending Technology)

Experimental

GamingSites

AdBit as

Blockchain-basedAd Network Business

ANOON as

Universal PaymentSystem

Scope/Volume

Page 10: BitRush Corporate Update June 2016

24681012141618202224262830

50

100

150

200

250

300

350

400

450

500

Users in M

2014 2015 2016 20166 M FY*

(*) ForecastUsers Transactions

First Investments intoBitcoins (BTC)First Investments intoBitcoin Gaming Sites

Launch of Blockchain-Based Ad NetworkAcquisition of AdBit AdNetworkLaunch of CryptocurrencyExchange „Bitcoin Obmen“RTO with CSE listedStreetwear Corp

Partnership with Wave Crest(Access to Visa/MC Network)Launch Bitcoin LotteryRelaunch AdBitDevelopment of the crypto-Graphic gaming portal WaggaWaggaPartnership with CryptoTec etcPrivate Placement w Asian GroupFocus on Payment/Clearing ServicesLaunch Payment Brand ANOON (June)

The BitRush Ecosphere: Timeline & MilestonesFrom Zero to more than 17 Million Unique Users per month within 30 Months

Tx in M

• 1 Million Unique Users

• 20 Million Transactions

• 8 Million Unique Users

• 150 Million Transactions

• 17 Million Unique Users

• 175 Million Transactions

1st half 201620152014

Page 11: BitRush Corporate Update June 2016

The Gaming MarketAn urgent need for a new means of payment & clearing

What problem do we solve?We can eliminate charge backs and we solve the slow, process of on-boarding new players to gaming sites, removing the need to fund accounts in the old, slow and expensive ways and therefore removing the resistance and trust issues for new players.

Global online gambling market forecasted to be

$ 46 billion U.S. in 2016, $ 56 billion U.S. in 2018.(Statista, 2016)

A gross win of around $ 317 billion U.S. was forecasted for global land-based gambling in 2015. (Statista, 2016)

78 million Americans admitted to having visited a casino in the past 12 months. (Nielsen Scarborough, Spring 2015)

Page 12: BitRush Corporate Update June 2016

User Account

Wallet(s)

iGamingand

land-based CasinoMachines

ANOON CryptoTokenRegistration │ Sign-In │ Payment

• Real-Time Clearing– no Deposits , no Trust Accounts (reduces costs)

• Secure Payment – cryptographic technologies with SHA-512

• Privacy Preservation – no User Data will be passed on

ANOON Payment Solution for the iGaming IndustryA hybrid solution designed for iGaming and land-based Casino Gaming

Page 13: BitRush Corporate Update June 2016

The $3 B/yr ANOON Ecosphere in Gaming and TradingBitRush has Already Built a Substantial Global Ecosphere for the Launch Campaign in June 2016

Tradologic:More than 50 binary option brands based on theTradologic platform will integrate ANOON as a

means of payment for more than 1 M trades per dayLeading European Gaming, Lotto & Casino brandswill be launch partners for ANOON:• BetSafe www.betsafe.com• Bet90 www.bet90.com• KulBet www.kulbet.com

• Lotto Palace www.lottopalace.com

ANOON aims to be the world‘s largestCryptocurrency based Payment Services

Provider in Q3 2016

Page 14: BitRush Corporate Update June 2016

Payments ScaleMarkets: Remittance, Debit Card, Peer-to-Peer

$583 billion was remitted across borders in 2014, according to the World Bank, for revenue of about $34.3 billion. (Business Insider Intelligence, Feb. 10 , 2016)

In the U.S. Visa had 469 million total debit cards, compared to just 313 million credit cards in 2015. MasterCard had 512 million debit cards, compared to 570 million credit cards. (Business Insider Intelligence, April 13 , 2016)

Debit cards accounted for $1.5 trillion in purchase volume in the U.S. alone in 2015. (The Nilson Report, 2016).

Peer-to-Peer (P2P) payments in the U.S., all methods, reached over $540 billion in 2014 and will grow to $566 billion by 2019 and mobile P2P payments will grow from $5.6 billion in 2014 to $174 billion by 2019.(Business Insider Intelligence, June 15 , 2016)

Page 15: BitRush Corporate Update June 2016

Payment SolutionsMarkets: Remittance, Debit Card, Peer-to-Peer

RemittanceWhat problems do we solve?High cost, slow transfers, security, convenience and limited use when funds arrive. Funds are available immediately on the ANOON debit card.

Debit CardWhat problems do we solve?The ANOON Debit cards can pay in FIAT or Cryptocurrency, wherever VISA or MasterCard are accepted worldwide, without the prepaid hassle.

Peer-to-PeerWhat problems do we solve?Slow, less secure & expensive modalities like cheque, email money transfer, bank transfer or wires are replaced with

convenient 24/7 real-time clearing and extremely low cost between ANOON users.

Hence we call it a Universal Payment Platform

Page 16: BitRush Corporate Update June 2016

BitcoinWallet

EtherWallet

Bitcoin Blockchain

Ethereum Blockchain

WAGGA™Wallet

FIATWallet

User Account

ANOON Node Chain

FIAT Money Systems

ANOON – A Universal Payment NetworkIntegration of FIAT Systems and Blockchains Into a Universal And Mobile Payment System

Page 17: BitRush Corporate Update June 2016

UserAccount

Multi-Currency

CryptoCurrenciesCryptoAssets

Wallet(s)

FIAT CurrenciesCryptoAssets

(Debit Card)Wallet(s)

Online World(Gaming, Shops,

Remittances)

Real World(Shops, ATMs)

Clearing

Conversion

ANOON - The Universal Transaction SystemIntegrates FIAT and Cryptocurrency Into a Highly Efficient & Privacy Protecting Payment Service

ANOON APIIncluding

CryptoToken(a la OAUTH)

PayDirect(a la PayPal)

ANOONATM Network

Page 18: BitRush Corporate Update June 2016

UserBank

ANOONDebit Card(virtual/plastic)

FIAT API

Online FIAT Payment

User Wallet• Cryptocurrencies• FIAT

Shop & ATM

Bank PartnersBitRush Account

BitRush Account

Exchange APIExchangePartners

FIAT Money Flow

WaveCrest API

Ba

nk

AP

I

Real-Time Card TransactionAuthorization

FIAT Money Flow

Currency buy/sell orders

Real-Time Deposit

Real-TimeDeposit Confirmation

Real-TimeStatus

Info

Real-TimeFIAT Payments

The ANOON Fiat Network EcosphereANOON Integrates Existing FIAT Networks Into A Universal Transaction System (KYC/AML Compliant)

ANOON ATMs(Cryptographic Casino

Machines)

Page 19: BitRush Corporate Update June 2016

ANOON DLAANOON

Node(Agent)

ANOONAdminNode

Decentralized Confirmation Process with

A minimum requirement of >51% Nodes Integration of Agents (Banks, Auditors, POS)

Distributed (Private) Ledger Architecture (DLA)

It‘s a balance-based system (like Ethereum)ANOON

Node(Agent)

ANOONNode

(Agent)

ANOONNode

(Agent)

ANOON: A Distributed Ledger Architecture (DLA)Decentralized Node System with Centralized Architecture and Balance-Based Confirmations

Page 20: BitRush Corporate Update June 2016

ANOONAsset System

Asset Class(e.g. Bitcoin)

Asset Class(e.g. US-Dollar)

Asset Class(e.g. Securities)

Asset ClassSpecific Wallet

Asset Sp

linters

Asset Sp

linters

Asset Sp

linters

Asset Sp

linters

Asset ClassSpecific Wallet

Asset Sp

linters

Asset Sp

linters

Asset Sp

linters

Asset Sp

linters

Asset ClassSpecific Wallet

Asset Sp

linters

Asset Sp

linters

Asset Sp

linters

Asset Sp

linters

Asset Mgmt& Clearing

User Wallet User Wallet User Wallet

User Account

Architecture: The ANOON Asset ManagementANOON can handle all kinds of Online/Offline Assets by using Splinter-Tokens

Page 21: BitRush Corporate Update June 2016

Root Splinter 1Representing

New Asset ValueUSD 100

Splinter 1.1USD 30

Splinter 1.2USD 40

Splinter 1.3USD 5

Splinter 1.4USD 8

Splinter 1.5USD 17

Splinter 1.2.1USD 10

Splinter 1.2.2USD 8

Splinter 1.2.3USD 12

Splinter 1.2.4USD 6

Splinter 1.2.5USD 4

External Assetdeposited from otherBlockchains/Systems

(Bitcoin, FIAT, Securities etc.)via Agents

Ledger-of-Splinters

Splinter 1.5.1USD 10

Splinter 1.5.2USD 7

Valid Splinters

Destroyed Splinters

Architecture: The ANOON Splinter System"Splinters", as Digital Tokens, represent assets in the ANOON Distributed Architecture

Page 22: BitRush Corporate Update June 2016

$

Bon

Bets

Payment

3rd

CryptoTecContent

3rd PartyContent/Ads

• Remittance• Online/Offline Purchases• Other

BSI Certified

Cryptographic TerminalThe OMNI Channel Machine

The Cryptographic ANOON ATM NetworkTeaming Up with CryptoTec to Build a Global Cryptographic ATM Network

ANOONTransaction NetworkGaming &

Casino Brands

Page 23: BitRush Corporate Update June 2016

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2016 2017 2018 2019 2020

ANOON Only ANOON-External Total Tx

Transaction Volume 2020 Highly Scalable Business Model with B2B Partnerships

Potential Transaction VolumeIncluding Micro and Nano Transactions

Transactions in Millions

Page 24: BitRush Corporate Update June 2016

Transactions

ANOONTransactions

ExternalTransactions

Wallet-to-Wallet• Zero-Cost for Cryptocurrency Tx• >90% Gross Profit for fiat Tx• Exchange Fee Revenue

ANOON-to-Other• External Costs (VISA/MC/Blockchains)• >70% Gross Profit for fiat Tx• Exchange Fee Revenue• Earning Opportunity for Card Selling

Transaction Categories for Revenue ForecastingANOON-only Transactions versus External Transactions

Page 25: BitRush Corporate Update June 2016

BitRush StockShareholders, Listings and Outlook

Stock listed on:• Canadian Securities Exchange (CSE:BRH)• Frankfurt Stock Exchange:0XSN

Planned Actions:• Move from CSE to TSXV (Venture)• Listing in Hong Kong

Shareholder Structure• 50% MezzaCap Investments (UK)• 21% HSRC Investments (Singapore)• 10% Management• 8% Strategic Partners

Capitalization:• 127 M Issued & Outstanding• 12.7 M Reserved for Issuance• 12.2 M Warrants Issued

Page 26: BitRush Corporate Update June 2016

$4.9 billion U.S. Fintech funding in Q1 2016 (KPMG and CB Insights)

Bitcoin and Blockchain V.C. Funding alone tops $474 million U.S. in 2015*

Blockchain funding is on the rise. In Q3 2015, blockchain and hybrid firms accounted for 31% of all-

time VC investment in Bitcoin and blockchain firms. That rose to 34% in Q4 2015 and 40%

in Q1 2016, according to CoinDesk. (For reference, this CoinDesk data tracks "all-time funding"

through a given quarter, rather than quarter-specific data.) *(Business Insider Intelligence, The Blockchain Report, May 16, 2016)

Page 27: BitRush Corporate Update June 2016

ComparisonsWhere we stack up

Blockstream raised $55M in Series A funding, total funding is $76M over two investment rounds. They are still in testing according to CoinDesk, Feb. 3, 2016.

Digital Asset Holdings, the blockchain startup headed by the former JP Morgan banker Blythe Masters, raised $60M in funding. (CoinDesk, 2016)

R3 CEV Plans to Raise $200m for Blockchain Trials.(NewsBTC May 16, 2016)

BitRush: Tested and ready to go.Relaunch of ANOON Payment System in June 2016Launch of ANOON Debit Card VISA/MC in June 2016Already processing up to 50 Million micro/nanopayments per month.

Page 28: BitRush Corporate Update June 2016

Kalixa

Specialised Universal

Regional

Global

XAPO

wirex

CoinBase

Cryptopay

Transfer-Wise

SpectroCoins

BitPay

BitRush – Unique Competitive PostioningA Distinct Value Proposition with our Universal Cryptographic Payment System

XAPO raised $40 million(CoinDesk)$120M valuation(Forbes)

BitPay raised $32.5 million(CoinDesk)$160M valuation(Techcrunch)

CoinBase raised $106 million(CoinDesk) >$400M valuation (Blomberg)

TransferWise raised $117 million$1.1B valuation(Techcrunch)

PayPalWesternUnion

Challengers

Incumbents

Page 29: BitRush Corporate Update June 2016

The Design of ANOONScope, Security, Compliance, Features, Metrics and Speed

We designed ANOON to match or, in some cases, go beyond the core existing capabilities of XAPO, BitPay, TransferWise and CoinBase combined.

Page 30: BitRush Corporate Update June 2016

We look forward to your joining us!

We can be contacted at:Karsten Arend Werner [email protected] [email protected]

President, Director CEOCell: +1 (416) 722 5512 Cell: +011 (44) 7713 085155

Franz [email protected]

DirectorCell: +011 (852) 6086 4955

BitRush Corp.133 Richmond Street W, Suite 403Toronto, Ontario M3H 2L3Office: +1 (416) 603 2114www.bitrush.co

BitRush Corp. is listed on the CSE in Toronto under the symbol BRH and on Deutsche Boerse in Frankfurt under the symbol 0XSN.

© 2016 BitRush Corp. BitRush, ANOON, WaggaWagga, Wagga and AdBit are trademarks of BitRush Corp. E.&O.E.