VANCOUVER, January 16, 2020 – BIGG Digital Assets Inc. (“BIGG” or the “Company”)(CSE: BIGG; OTCQB: BBKCF; WKN: A2PS9W), owner of Blockchain Intelligence Group (“BIG”)(blockchaingroup.io) and Netcoins (netcoins.ca), is pleased to provide a corporate update on each wholly-owned subsidiary, including technical, sales and financial progress overall.
BIGG believes the future of crypto is a safe, compliant, and regulated environment. BIGG invests in products and companies to support this vision.
Blockchain Intelligence Group
Blockchain Intelligence Group has developed a Blockchain-agnostic search and analytics engine, QLUETM, enabling Law Enforcement, RegTech, Regulators and Government Agencies to visually track, trace and monitor cryptocurrency transactions at a forensic level. Our commercial product, BitRank Verified®, offers a “risk score” for cryptocurrencies, enabling RegTech, banks, ATMs, exchanges, and retailers to meet traditional regulatory/compliance requirements.
Research and Development
Over the course of 2019, BIG released numerous product updates for each BitRank and QLUE, with enhancements resulting in faster loading and refresh times, striking graphical layouts, improved account access control and more detailed reporting. Concurrently, BIG was able to reduce its monthly server operating costs by as much as 66%.
In 2020 the development team is focused on “ease of use” features for our customers, including advanced query filtering and further reporting enhancements. The team is also upgrading system failover capabilities to ensure industry-leading uptimes, third party integrations (bringing our technology to a wider potential customer base through partners) and new feature development.
Sales and Marketing
Backed by increasingly robust products, BIG has grown the sales team to 4 full-time employees plus executive support. The leading markets for QLUE, BitRank and Certified Cryptocurrency Investigator training include law enforcement, financial institutions and educational institutions. Recent wins include tier-1 banks, national law enforcement agencies and universities alike. BIG is focused on expanding its online presence and digital advertising campaigns. With only a handful of capable competitors in the space, BIG seeks to solidify its position as a top contender through its 2020 sales and marketing push comprised of inbound marketing, outbound calling and industry event marketing.
Future Objectives
Goals for 2020 include hitting strategic growth and financial targets. We seek to be a top 3 competitor in every sales pitch. Customer feedback drives our product enhancement initiatives as we look ahead to the ever-expanding and evolving needs of the industry. From a revenue perspective, we are aiming for 100% YoY growth in 2020, while maintaining or reducing costs.
Netcoins
Netcoins was acquired by BIGG on August 1, 2019. In 2019 the cryptocurrency market started out fully entrenched in “crypto winter” which began to thaw in April. Monthly trading volumes were volatile, inconsistent and highly unpredictable. The largest component of Netcoins’ revenue was Over-The-Counter (OTC) large volume trades, which resulted in significant variability in monthly revenues. Since the acquisition, Netcoins’ operations have been revamped with a view to realizing more consistent monthly revenues across a wider retail customer base.
R&D
In order to attract and expand to a more retail customer base, the Netcoins app interface has been revamped and re-styled. The KYC (Know Your Customer) onboarding process was completely reconstructed in order to be as non-invasive and invisible to new customers as possible, while still providing Netcoins with the most security and confidence in the validity (and authenticity) of each new customer. Self-serve features have also been expanded (i.e. auto deposits). Moreover, we have connected new deep liquidity partners that allow customers to transact large trades via the Netcoins app that previously would have required human interaction via an OTC desk. Netcoins also rationalized the number of coins listed on the platform, delisting low trade volume and hence low revenue coins, to decrease R&D complexity.
Community / Marketing / Regulatory
At the end of 2019, Netcoins hired a seasoned Community Manager and launched Netcoins.ca – which has a strong Canadian focus. Netcoins is consciously moving to a retail customer acquisition strategy, based on social marketing and community involvement through meet-ups and events attended by crypto enthusiasts.
We see the future of crypto trading in Canada as a safe and regulated environment. We fully believe this is beneficial for consumers and businesses alike. To that end, Netcoins has engaged Miller Thompson LLP, a full-service national law firm, and Ben Samaroo (see news release dated December 4, 2019) to assist with its application to the BC Securities Commission (BCSC) and the Canadian Securities Administrators to become regulated. As a subsidiary of a public company, Netcoins is already audited, transparent and held to high financial reporting standards, which makes the jump to being directly regulated more feasible. Netcoins will continue to work with the BCSC on this initiative throughout the first quarter of 2020.
BIGG believes Netcoins can be a top 3 crypto trading platform (by volume) in Canada within the next 12 months.
BIGG
2019 was an important year in our business evolution: Netcoins was acquired; and, BIG made several critical product developments, opening up the sales and growth potential of the business.
In Q4 2019, BIG and Netcoins contributed nearly equally to revenues generated – with estimated aggregate net revenues at CAD$336,000. This is more than double the CAD$145,783 reported in Q3, which itself was greater than 3x the Q2 revenue of CAD$40,079 reported by BIG.
At the close of 2019, BIGG had more than CAD$6 million in cash and cash equivalents. This includes 150 Bitcoin, the market value of which has been increasing steadily over the past few weeks. We view our Bitcoin holdings as longer term investments, which offer us the opportunity to be self-financing, particularly should Bitcoin continue to appreciate through 2020 and beyond. At our current burn rate, without any change in revenues, BIGG has 18+ months of runway. Of course, we anticipate additional revenue growth to further extend this runway. Ultimately, we seek to be cash flow positive by early 2021.
“2019 was a year of foundation laying for BIGG. Blockchain Intelligence Group advanced its products to a point of direct competition with the industry-leading solutions, enabling the activation of sales. We built and offer products that have few equals globally, in a growing market with deep-pocketed customers that require such solutions. Netcoins solidified its core technology and prepared for scaling and the adoption of a larger retail customer base. 2020 will be a year of sales and marketing execution and revenue growth for both businesses, while continuing to advance their respective platforms. We have a solid financial footing, 2 businesses with real revenue and growth potential and the right people in place to make it happen. We will be expanding our investor outreach programs, including investor roadshows, within Canada and the US in 2020. We look forward to updating our investors with our progress throughout the coming year.” said Mark Binns, CEO of BIGG.
On behalf of the Board,
Mark Binns
CEO
[email protected]
T:+1.844.515.2646
About BIGG Digital Assets Inc.
BIGG Digital Assets Inc. (BIGG) believes the future of crypto is a safe, compliant, and regulated environment. BIGG invests in products and companies to support this vision. BIGG owns two operating companies: Blockchain Intelligence Group (blockchaingroup.io) and Netcoins (netcoins.ca).
Blockchain Intelligence Group (BIG) has developed a Blockchain-agnostic search and analytics engine, QLUETM, enabling Law Enforcement, RegTech, Regulators and Government Agencies to visually track, trace and monitor cryptocurrency transactions at a forensic level. Our commercial product, BitRank Verified®, offers a “risk score” for cryptocurrencies, enabling RegTech, banks, ATMs, exchanges, and retailers to meet traditional regulatory/compliance requirements.
Netcoins develops brokerage and exchange software to make the purchase and sale of cryptocurrency easily accessible to the mass consumer and investor with a focus on compliance and safety. Netcoins utilizes BitRank Verified® software at the heart of its platform and enables crypto transactions via retail locations globally, a self-serve crypto brokerage portal and an Over-The-Counter (OTC) trading desk.
BIGG Investor Relations
Renmark Financial Communications Inc.
Nathanael Niedermann: [email protected]
Tel: (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com
For more information and to register to BIGG’s mailing list, please visit our website at https://www.biggdigitalassets.com. Or visit SEDAR at www.sedar.com.
Forward-Looking Statements:
Certain statements in this release are forward-looking statements, which include completion of the search technology software and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, and other factors, many of which are beyond the control of BIGG. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Undue reliance should not be placed on the forward-looking information because BIGG can give no assurance that they will prove to be correct. Important factors that could cause actual results to differ materially from BIGG’s expectations include, consumer sentiment towards BIGG’s products and Blockchain technology generally, technology failures, competition, and failure of counterparties to perform their contractual obligations.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, BIGG disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, BIGG undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
The CSE does not accept responsibility for the adequacy or accuracy of the content of this Press Release.
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