Q) Who are the members?
Owners of the nodes. One node at CRDA, one at ZEBI and more. Multiple nodes and are private. We integrate with Ethirium public Blockchain that has more than 20,000 distributed nodes. It makes it extremely immutable
Q) How secured is the data? Do we have recovery?
A) Yes. We have recovery process. Distributed and hence all of them going down won’t happen.
Q) Where do you host?
We are hosting currently on Pi Data Center.
We convert everthing into text for example latitude and longitude data, not the visual data. We typically find that data like this that needs immutability.
Q) Types of Zebi’s revenue
Data protection fees.
Commission fees in transactions.
Data access fees.
Q) Did you do equity funding before?
We diluted first a million for a successful million post money valuation.
Legality wise, Arun Jaitley clearly said Bitcoin is not a legal tender. He didn’t say it is illegal. At the same time he didn’t say legal. In India regulations are not clear. Until regulations get clear, go to countries where regulations are clear. US is very clear. Singapore is good enough. As long as you don’t make it look like IPO and call it utility token, you are OK.
Security token is where investors own equity. Utility token means those tokens are used to buy services from say ZEBI.
As an owner of utility token, you are a participant. This is very similar to Kickstarter of crowd sourcing.
Q) Are you listed in any coin or token exchange?
Not yet. We will be listing very soon to provide liquidity. We fixed the number of Zebi coins that can be ever minted. We declared the max of one billion will be ever minted. If many missed the crowd funding and how do they come on board and participate? Only through an exchange.
Q) How many people participated?
Q) If an investor wants to invest in a startup with the condition that it had to raise money through ICO, what do you say?
VC has fiduciary responsibility to his limited partners.
Q) Do you have this money in fiat currency?
I have $10 million in ethereum coins. If I want to convert the money into rupees, I can do it at the current market price.
Zebi singapore has the public vision of Zebi public Blockchain and Zebi India is an affiliate of the same to provide it services.
Q) AP data on Ethereum?
It is one way hash. Anyone can see the public hash. Only AP government has got the private key.
Q) Cost of raising the funds?
Very small. I said no to spending a million dollar for marketing. I didn’t hire an agent. We spent less than 50 ether. This is very tiny amount in crypto standard. By the time, we spent little amount, early adopters bought in the pre-sale and they told their friends and community has grown very quickly.
Q) Are the funds raised in proportion the growth projected?
Yes. We started with India first. Now we are doing it across the globe.
Q) Is it illegal to hold Bitcoins?
In India it is called illegal. In the olden days people bought it without any “know your customer, KYC, data. Account address, also known as public key, is the way to identify the person owing these many coins. Now a days, KYC is needed strictly across the world
Q) Why are there so many currencies then?
Bitcoin is a single currency. That is the idea. Ethereum founder came along and said he could find more uses to this concept called smart contracts. Zebi is built on ethereum standard. He kept good controls such as number of coins and maximum number of coins or tokens that can be minted and so on.
As of now we have enough money to become profitable within the three years.
Q) How did you come up with a billion Zebi coins?
500 million for public. 500 million for company as incentives to apartments and employees.
Q) token versus coin?
There is no difference
Q) Can we use your channel to market my coin?
No. March 5th at 6pm we started the crowd sale. We used bots to kill messages from hackers. These messages look as if someone from our company created. They give addresses where to send the money to. Hackers started sending redirection messages in our channels asking participants to send money to a different address. We used bots to kills these messages the sooner they popped up.
Q) How do you safeguard?
We publish where to send the money not publicly but through a login. Some hacker even imitated our medium article and he mentioned his own new Zebi address there. We only share the first five digits and last five digits of our 40 character address. Noone hacked our own website.
Philshing emails are a threat. Login to ICO.zebi.io. We have KYC data of all the 5000 participants. Only few of us know it.
Q) How did you verify the KYC?
We use passport data and email checks.
Q) Common apprehensions?
- Big difference between being legal and legal.
- Anti money laundering (AML) is key. KYC and AML checks are the key.
- USA and Singapore are crypto pro.
Q) Equity versus utility tokens?
Equity tokens provide share in company’s
Q) How do you define utility?
They can use it to buy your product.
Common apprehensions and safeguards
-Good legal counsel.
-Expert in regulatory compliance (SEC, SAFT, US Accredited Investors, Banned countries)
Proper KYC, No KYC.
How does ICO work
Why do you want to do ICO? Don’t do it for the sake of doing it. Think hoe this can become an established utility. Crypto communities are aggressive and grill you. Be prepared. Make sure your white paper or token model clearly lay out the purpose, vision and clarity.
-Does your product need to be on Blockchain?
-What will be the purpose?
1What function or utility it will provide?
-Is there a viable economic model behind it
-How much you want to raise?
-What currencies to accept. (Ethirium)
-Token metrics, soft cap, hard cap
(soft cap is the minimum you want to raise versus hard cap is the maximum you what to raise)
-Product roadmap, annual budgets
-White papers (multiple languages)
-SAFT: Simple Agreement for future tokens
-Website and social media presence
-Smart contract (extremely important)
-Whitelisting (pre-registration before ICO starts)
-Bulk email communications (safe guards of email spamming are prohibiting us to send the real messages :() Figure out which bulk email company do you use.
-Cash out in fiat
-Running the project
-Constant communication with the participants
Q) Is there a mechanism of service versus price of token?
Thee is an issue price.
Q) How many of the 2000 stayed invested?
All of them are locked. When we go public on multiple exchanges, they can trade
Q) How many ICO exchanges are there?
There are more than 100s of exchanges.
Q) How do you get rated?
We got zero rating. We didn’t invest in PR
Q) You have a lawyer?
TRA Law firm based out of Delhi helped us.
Q) Can you dilute your 500 million Zebi coins?
We have an eighteen month lockin period.
Q) What stopped you at $10 Million coins?
If you raise too less, you can’t survive. If you raise too much, there is a risk of dilution. Perception of dilution. Think of the profitability based on your speculation.
Q) How can you plan or budget the need of funds vetting against the ether?
There is always FUD factor. FUD: Fear, Uncertainty and Doubt. This is a factor in FUD.
Q) Are there participants based on pure speculation?
Technically no. They intend to use our services.
Q) Do you believe this replaces RDBMS?
Q) Data location?
On premises of data provider.
Q) Challenges with non-blockchain data?
One company worker I met in California, told us that their government data is gone. Someone removed database binary files. This is scary in non-blockchain world.
Q) Can you do another equity funding round?
We can. We don’t want to.
Q) Over-subscribed ?
Original plan was to keep the subscription open till March 31st. But we got over-subscribed in February itself. Top three crypto influencers backing us but we didn’t have any allocation left.
Focus on your product, team and timing. Marketing will come. There are always people with spare money to invest all the time.
Q) Would you be ever influencing the pumps and dumps?
We don’t plan to do it. Like many out there employ their own pump and dump means, we don’t do it.
Q) ICO to IPO?
Parallel channels. I don’t see that happening.
Babu signed off saying, “I believe there will be new Blockchain that addresses the fears and compliance of the companies and the governments. We are still evolving. Think of Netscape and how other websites and browsers evolved later?”
Babu took question after question from all the corners of the venue and answered each of them with quality content and straight answers. His was the most interactive ever peers talk session at T-HUB.