Flying Money -Tokenization of Assets Flying Money Ltd Business Case

At the beginning of the industrial revolution, The Dutch East India Co. was the first company to offer shares of its business to the general public. It allowed the sharing of risk between merchants and ultimately the sharing of profits and assets. It was the beginning of private global commerce. For the following 400 years, stock markets proliferated in countries across the globe and allowed commerce to flourish.

Fast forward to the present day. Today, the limited liability company is at the centre of modern commerce. Those Dutch traders could not have envisioned the creation of Blockchain and much less the global Internet network that is essential for modern day business.

Maintenance of share registries and their transfers is a costly process which employs millions of people in back offices who use antiquated platforms to verify and process billions of transactions in order to confirm the share ownership. Fraud through duplicating assets cost the financial services industry $7 billion annually in 2016 and is projected to reach $31 Billion in 2020. Blockchain is a distributed ledger which can provide an effective solution to this problem of duplication of ownership.

Tokenization of assets implies that an asset is linked to a digital token and is secured on the Blockchain. It can be a fungible asset that can be easily replaced (such as wheat or gold) or it can be a unique asset such real estate that cannot be replicated exactly.

One of the Blockchain Technology’s many features is that it can assign ownership to a particular token of an underlying asset. The token ownership is secured on the network by Proof of Work undertaken by stakeholders for profit motivation, thereby ensuring the integrity of the network and transaction.

The Blockchain ensures that ownership of a token cannot be transferred without the private keys. The total stock of tokens in circulation can be verified on a Blockchain explorer and creation of additional tokens is impossible without the confirmation of the network. Transactions can be done without the need for expensive third-party charges and in a trustless environment.

The major impediment to broad implementation of asset tokenization is government regulations in major OECD countries. However, given the exponential adoption of cryptocurrencies, and the favourable operating environments in Blockchain friendly states, there is an opportunity to migrate equities, commodities and real estate assets from traditional exchanges to a more secure, efficient and transparent Blockchain platform.

Flying Money Ltd.’s long-term goal will be to seek a banking license enabling total independence in serving both customers and digital exchanges within the crypto financial ecosystem utilizing Blockchain to better serve at lower cost and in faster time.

What really is a Blockchain token?
When people think of a token the first concept that comes to mind is a Bitcoin or -Ethereum or the thousands of tokens that have been issued in ICOs since the Blockchain revolution first began in 2009.

A Blockchain token has value for three main reasons:

Value Aspect. They are considered valuable because they can be transferred P2P and in many cases, they have a finite circulation.

Network Fuel. Tokens such as BTC or Flying Money’s FML token are used to pay for transactions. Ethereum tokens are used for computer or electrical power. Others tokens may be used to pay for cost of storage.

Network Integrity. By allowing the development of a decentralized network, there is no need for a central authority to oversee that operational rules are being followed. Stakeholders are rewarded for ensuring that the rules established are followed and transactions are processed in accordance with the network consensus.

No central authority controls the original Bitcoin network. It relies on a disparate group of stakeholders who get rewarded for work performed. This profit incentive defined by the rules established by the network ensures that transactions are authenticated by the consensus of the users on the network.

Application Layer on a Blockchain
The application layer that is built upon a Blockchain allows for the creation of Smart Contracts to adhere to defined behavior or characteristics. Programmers can create conditions for tokens to be exchanged or events to be applied based on defined criteria. If A happens then B occurs. The Smart Contracts govern transactions on the Blockchain.

A token created on a Blockchain can be assigned a stake, or ownership, in a network. So a Blockchain can have an asset simply broken down into part ownership and represented by an individual token.

Currency Tokens — The Need for Transparency
Currently, most cryptocurrencies have no backing asset value except the discounted cash flow of future earnings that increase the value of the utility token on the relevant Blockchain.

The market value of cryptocurrencies has recently been as high as USD $900 billion dollars. With such a high market capitalization and daily turnover in tens of billions, the demand for a stable asset backed cryptocurrency that can be utilized as a settlement token is considerable. Currently Tether is the primary settlement token used by the world’s major exchanges. Tether currently turns over USD$4 Billion dollars daily. It claims to hold in excess of USD$2.2 Billion as on 15th February 2018 to back its USD currency tokens in circulation.

Digital Token v Fiat Settlements
The simple answer for using a digital currency token is the speed and convenience of the money transfer process. A currency token can be transferred in seconds across the globe without the need for third party intermediaries. It can be sent securely on the Blockchain in a trustless manner. Bank transfers take days and the corresponding bank charges such as FX and transaction fees considerably deflate the original transfer value amount. Payment in currency tokens eliminates much of the middleman costs, which are substituted by lesser gas, or miner’s fees, charged to confirm the transaction.

The main requirement for a trusted digital currency token is that both parties to a transaction believe that the underlying assets equal the currency token transferred. The receiving party must have trust in the transaction. Both parties must agree that a settlement has occurred. The Blockchain performs this function by recording the transaction transparently in its distributed ledger. In summary, the benefits of a stable currency token are:

1. Invoice payment to another party
2. Place funds in a stable token to avoid market volatility
3. Avoid interbank transfer fees
4. Need for immediate payment
5. Avoid excessive exchange rate fees
6. Eliminate excessive bank administration fees
7. Deep liquidity in the Currency Markets
8. Asset diversification
9. Reduction of counterparty risk
10. Ability to forward price a good or service with certainty of the payment value in the future

Blockchain technology will bring disruption across all sectors of the financial industry. The currency exchange and remittance industry will undergo a massive transformation as Blockchain allows transactions in seconds with the security and certainty that customers require.

The Volatility Problem
The major problem with investing in or using cryptocurrencies for payments, has been their volatility. Cryptocurrencies can fall or rise by 20% in a single day. An entity receiving a BTC, or ETH, has no certainty of the value remaining stable over any 24-hour period.

Although software developers, or other players in the crypto environment may accept being paid in BTC, the average consumer, business, or producer cannot accept such crypto payments given the price volatility that characterizes the current market for cryptocurrencies. So, it’s clear that non-asset backed tokens cannot be used as a reliable medium of exchange, or as a store of value. Therefore, their use for trade payments, remittances or settlements assets is very limited.

Flying Money Ltd’s Solution to the Existing Problem
The current problem in today’s money transfer system is: -

It requires a more efficient and cheaper method of money transfer
Trust and certainty is required in the digital currency token
To implement the solution to the above problem, Flying Money aims to utilize Ethereum open public platform’s Smart Contracts functionality.

The distributed ledger platform of the Blockchain reduces the cost and time of transactions because there is no need for middlemen. It also provides the certainty of transfer and legal ownership. Every transaction on the Blockchain is verified and maintained on a public ledger that cannot be altered. It allows customers to control and manage transactions, establish financial contracts and remove the low value, high cost banking bureaucracy.

The Flying Money solution to the current market problem is to issue Currency Tokens that are backed 100% by an equivalent bank deposit, and which will be traded on major digital exchanges. These Currency Tokens will primarily be used to settle trades, transfer funds and diversify cryptocurrency portfolios to reduce volatility.

Initial Flying Money Currency Tokens to be issued will be in the 6 major global currencies. For example, the USD will be called “USDf”, the EUR the EURf, and similar for the following denominations JPYf, AUDf, GBPf and CADf. Flying Money currency tokens can reduce volatility by anchoring a digital currency to an equivalent bank deposit.

All currency tokens will be backed 100% by an equivalent amount of currency held in a bank account controlled by an Independent Trust. Users will be able to buy and sell Flying Money Currency Tokens on digital markets globally, or create, or redeem tokens on the Flying Money payment gateway.

Flying Money Currency Tokens can be redeemed on the Flying Money Payment Gateway for the value of the Currency Token providing the certainty of exchange.

The following chart shows the process for buying and selling the currency tokens.

The Flying Money digital wallet will allows payments to be made globally and with the convenience of a mobile phone app. Customers can also exchange between currency tokens directly on their mobile wallet app, thereby bypassing costly banking exchange rates.

The only real competitor currently operating in this token currency market is Tether which has a market capitalization of approximately US$2.1 billion dollars and a daily turnover of over USD$4.0 billion dollars daily.

Flying Money Key Industry Differentiators
Audited monthly by leading Accounting Firm — Ernst & Young
Independent Trust to legally protect customers
100% cash backed
Legal and regulatory compliance.
B2C and B2B (digital exchanges) Payment Application
FML ICO Token — Used to Pay Transaction Fees
In order for the business model to be profitable, Flying Money Ltd has designed the system to utilize a Transaction Token. This is separate from the Currency Tokens. It is used solely for the payment of platform fees when customers buy and sell Currency Tokens.

FML Tokens have utility due to following characteristics.

ERC 20 Type Tokens acceptable on all major global exchanges
Maximum of 65 million in circulation initially
They are destroyed and reduced in circulation when used to pay transactions.
If other currencies are used to pay transaction costs, Flying Money will use these currencies to buy and destroy an equivalent value of FML Tokens.
As transaction volumes increase for Flying Money Currency Tokens, demand for FML Tokens increases, and more FML Tokens are therefore withdrawn from circulation via the process outlined above.

Higher the volume of transactions, the more FML Tokens are destroyed, and therefore higher market demand for FML Tokens on exchanges. There will be fewer FML Tokens in circulation everyday as the business conducts its trade in Currency Tokens.

The value for token holders is that these forces of increasing demand, and destruction of the token, will see limited supply being chased by greater demand and therefore impact the value of the Flying Money transaction token.

The Flying Money Ltd ICO is currently in Pre-Sale with a 50% discount for early contributors. Please visit our website and assist us in achieving our goal of being the global leader in digital currency tokens. www.flyingmoney.io

Flying Money — A Sleeper ICO that can generate enormous gains.

The cryptocurrency market has seen tremendous growth in recent times. Understanding the benefits of blockchain technology, many people have started trading a variety of their assets digitally. Flying Money provides investors with a safe, secure, and transparent platform for cryptocurrency-like trading of fiat and digital currencies.

Headed by former Ferrier Hodgson Director Russell Hatton, Flying Money distinguishes itself from its competition through a vastly experienced team and superior investor protection. Each digital token is backed by an equivalent EUR, YEN or US dollar 1:1. Ernst & Young has been contracted to audit the processes of the independent trust holding investor money.

The process is transparent. Customers pay in BTC, ETH or FIAT; the company sells the tokens on the market and deposits the money in a trust to back the tokens. Its transparent and they will publish their bank statement and be audited each month to confirm it matches the tokens in circulation.

So why issue a token that costs $1.00? Simple they want to be the worlds leading settlement currency for Digital Exchanges. They make their margin on interest, small transaction fees and a small FX spread. Today, many banks are withdrawing their services to digital exchanges and customers. Also consumers do not trust many digital exchanges, given the number hacks in recent times. Currently, consumers wait 3–4 days to get their money from a digital exchange. Flying Money can be settled in seconds.

Another reason to hold a currency-backed token is volatility. The crypto market can rise and fall by 20% in a day. Traders need to exit the market at times. Flying Money Currency Tokens combines the benefits of a Blockchain with the stability of fiat currency. “In effect we have taken the best of both world’s and combined them to make the most stable, secure and transparent digital assets for the mass market today,” said Hatton.

The market for a stable tokens backed by fiat is massive. Tether has the market to itself. It turns over $4 Billion a day. Yes that’s right a day! Flying Money has learned from the experiences of its competitors. “We have seen a number of ICO’s claim the benefits of the Blockchain yet they offer no investor protection as they fail to provide independent audits or accountability for the funds raised” stated Hatton.

To establish the operations Flying Money is undertaking an ICO and issuing 50 million Flying Money tokens (FML). These are the transaction tokens used on their system. Once these FML tokens are use in transactions they are burned, reducing the number in circulation. So there will be an increasing demand for FML Tokens when they start their business and a reducing supply.

Flying Money intends to follow up its asset tokens with a Mobile App that allows customers to transfer between currencies in their mobile phone without expensive FX, bank and transaction fees

The dream is large for Flying Money as they seek to become the world’s premier settlement currency on digital exchanges. If they get it right the rewards for investors will be enormous.

Flying Money will hold their PRE ICO sale from January 31st to March 29th and ICO sale from March 30th to May 18th. More information about token sales is available at www.flyingmoney.io