SLIDE 2 DAVID YERGER
David has built 3 businesses and held key roles in 2 startups since graduating in finance & entrepreneurship from Samford University. David’s interest and involvement in cryptocurrencies began after Fliptop (predictive analytics) was acquired by LinkedIn. He was the business lead at BitGo, a cryptocurrency security company, before starting Redwood Digital Group, LLC and Redwood Fund I, LP. David is a conference speaker and panelist, investor, and is a fervent advocate of the new digital infrastructure of money.
JONATHAN AZEROUAL
Jonathan has worked as a quantitative analyst, fund manager and trader in France, the United States and the United Kingdom since graduating with honors in Financial and Statistical
- Engineering. Jonathan started to notice the limitations of existing currencies while working as a
trader at various financial institutions. He began to explore digital currencies, learn the ecosystems, and trade them as a new digital asset class.
SLIDE 3 JARED SINK
Finance and Operations
Jared graduated from UNC in 2010 studying Economics and also studied at NCSU graduating 2013 with Master of Accounting specialization in Enterprise Risk Management. He is a North Carolina licensed CPA and began his career with EY's Advisory practice specializing in Risk. This role covered risk related to finance, operations, technology, and auditing. At Redwood Digital Group he is managing business operations and finance. His expertise in operational risk and accounting are welcome additions for this team of entrepreneurs and traders.
GEORGE FONDREN
Head of OTC Trading
George has spent the last thirteen years working as a trader and analyst in the structured products space, focusing mainly on distressed fixed income securities such as non-agency RMBS, non-agency mortgage derivatives and CDOs. Prior to his career in finance, George started and ran a manufacturing company and was a Special Assistant to Elaine Chao at the U.S. Department of Labor. George received an MBA from Northwestern University's Kellogg School of Management with majors in analytical finance and management and strategy.
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Waves of Digital Innovation
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Waves of Digital Innovation – Web 2.0
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Waves of Digital Innovation – Web 3.0
SLIDE 8 Sending copies, not originals
Internet 2.0 Internet 3.0
Sending originals, not duplicates
Web 3.0
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SLIDE 11 1)The TRUST Perspective
Institutionalized Trust Digital Trust
Trust is critical to our society. Particularly to commerce. Some examples of institutionalized trust: ❖ Forms of government and founding documents (US Constitution) ❖ Laws and regulations ❖ Legal relationships between individuals ❖ Insurance ❖ Property title ❖ Banking ❖ Monetary systems and monetary policy TRUST is really difficult in the digital realm. Digital money is even more difficult. The technical term for this computer science problem
- f digital money is ”The Double-Spend Problem
SLIDE 12 2) The ACCOUNTING/DATABASE Perspective
Blockchains can also viewed slightly differently as a globally distributed triple-entry accounting system.
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3) The PROTOCOL Perspective
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VALoIP
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Lets look at the benefits:
SLIDE 16 David’s Blockchain recipe:
- 1. Network
- 2. Ledger
- 3. Consensus Mechanism
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Where we are – Problems of Cryptocurrency
❖The Hype ❖Unclear Regulatory environment ❖Scalability Problems on base layer networks ❖Current lack of developer tools ❖Security/custody of crypto assets
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Where we are – Markets
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Where we are – Markets (Oct 2018)
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Where we are – Sharpe Ratio (365 D)
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Where we are – Correlations
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Where we are – Developers
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Where we are – Technologies Enabled (Oct 2018)
❖Direct Digital payments – digitally native currency (cheaper, faster, secure, etc) ❖Microtransactions and metering ❖Smart contracts - if this then that ❖Secure store of value – In Venezuela property and savings can be confiscated ❖Extra monetary applications - a blockchain token can represent anything that can be digitized
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THE GROWTH OF CRYPTOCURRENCIES AND THE BLOCKCHAIN
SLIDE 25 We estimate that by 2027, 10% of global GDP will be stored on blockchains
The World Economic Forum
SLIDE 26 THE CRYPTOCURRENCY S-CURVE
2.5% 13.5% 34% 34% 16% Innovators Early Adopters Early Majority Late Majority Laggards
RDG should benefit during S-Curve Growth
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Technology Adoption (S Curves)
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SLIDE 32 THE TOKENIZATION OF EVERYTHING
USE CASES
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Redwood Digital’s Crypto wish list:
❖Institutional Custodians ❖Institutional Exchanges/Tools ❖Regulatory Clarity for cryptocurrencies and crypto assets ❖Futures Markets for other crypto assets ❖ETFs ❖Securities Token Markets
SLIDE 34 Bitcoin Network Visualizer
Ethereum Network Visualizer
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FAQ
SLIDE 36 What are the risks of cryptocurrencies?
Primary risks are:
- Uncertain regulatory environment
- Price volatility
- Theft/Security
- Protocol risk
Please see the memorandum for a more detailed discussion of the material risk factors associated with an investment in cryptocurrency.
SLIDE 37 What are the most likely uses for cryptocurrencies?
Typical uses are:
- The rise of digital money - “Next step in internet evolution”
- Deflationary asset class - known limited supply
- Cross-border advantages - very low transaction fees
- Bitcoin’s immutable ledger - “The One True Data Depository”
- Ethereum’s smart contracts - improving executable contract technology
SLIDE 38 Are there other characteristics to know about cryptocurrencies?
Other characteristics are:
- Varying levels of confidentiality for cryptocurrencies
- Varying consensus mechanisms
- Varying levels of security
- Varying networks, transaction types, value transacted, and developer
communities
- Varying use cases for each cryptocurrency
- Varying technological implementations and rates of change
SLIDE 39 LOCATION
555 Fayetteville St 3rd Floor Raleigh, NC 27601 & 300 Concourse Blvd Suite 101 Ridgeland, MS 39157
CONTACT US
info@rdg.fund 919.522.0214
REDWOOD DIGITAL GROUP
Questions? info@rdg.fund david@rdg.fund
