With lower fees and more efficient transactions, cryptocurrencies are leading the way towards a global shift to a decentralized and open digital economy. With widespread adoption by institutions worldwide, now is the best time for you to enter the crypto space. Our crypto business plan writers at Black Sheep Business Consulting will help you write a winning business plan. This will be useful when you pitch your company and your services to crypto investors and partners. A crypto business plan sample has been included below:
1.0 Executive Summary
“Coinerica Limited” (herein also referred to as “Coinerica” or “the company”) was incorporated in the State of Illinois on April 5, 2019 by Founder and Chief Executive Officer, Mr. Paulson. Coinerica is a crypto currency exchange and trading platform currently applying for a bank account with Brakewell Securities.
2.0 Business Overview
Currently, Chaseville Moving is a one truck company that is primarily operated by Owner, Pat Steele. Mr. Steele utilizes contractors on a case by case basis depending on the demand of the job. The business operates in the area, and is involved in the moving industry.
A Brief History
In recent years, the crypto currency exchange market has grown thanks to strong consumer interest in the digital asset space, decentralized digital currencies, and blockchain technology. The most well known, and largest, crypto currency, Bitcoin was conceived in 2008 and the overall market is projected to gain value over the next five years. While it will be at a slower pace than in recent years, the technology continues to mature and become more established in the market aiding growth.
Looking Ahead
Today, the crypto market remains alive and well in spite of recent macroeconomic events. The underlying technology has emerged from the 2008 financial crisis to provide an alternative means to centralized currencies, as well as for investors seeking to put their capital into the digital asset space. The market is projected to grow at a 7% compound annual growth rate (CAGR) to 2027, while the total crypto market capitalization easily exceeds $1 trillion. As new coins emerge and investors flock to this financial market, Coinerica is positioned to cater to the B2C segment’s wallet and trading needs.
Introducing Coinerica
The company aims to disrupt the exchange market with an innovative wallet services and trading platform. The management team brings years of experience in technology, blockchain, and product development to create a unique offering for the B2C crypto currency exchange segment. Coinerica is currently pre-revenue, but seeking to obtain account approval through Brakewell Securities in order to launch the platform.
The deep subject matter expertise and experience of the team in building scalable products for enterprise-level clients provides a tangible differentiator to competing platforms. This ensures the product is secure and brings a level of sophistication to the B2C market, which is commonly lacking from other players. Additionally, due to this experience, security is top of mind, which is a primary reason many exchanges fail. Fraud, theft, or cyberattacks can crush a business, particularly one reliant on financial transactions. Coinerica has the know-how, capacity, and capabilities to ensure risks are mitigated for each customer. Keeping data secure and ensuring a seamless customer experience are at the forefront of all operations.
Thanks to a heightened standard of competency and experience in the blockchain and platform development space, Coinerica aims to break even within three months for crypto-fiat. With approval for a business bank account, the company seeks to create value internally, for platform users and Brakewell Securities.
2.0 Business Overview
Coinerica is a Canadian Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)-registered crypto currency exchange that launched in March 2022. The exchange offers over 170+ crypto currencies on its platform in addition to wallet services for users. The goal of Coinerica is to enable tens of thousands of people to buy and sell digital currencies without worrying about security concerns or hefty withdrawal fees.
Solving Common Crypto Problems
The company is fulfilling this objective by allowing its customers to trade several types of digital currencies safely and quickly. Coinerica aims to increase the freedom for users on the platform to trade crypto currency while maintaining strict security protocols. Customer’s data is secured and an accessible means is provided to trade easily for new, intermediate, and advanced crypto currency enthusiasts. The company intends to reduce common frustrations with exchanges by incorporating enhanced security, high performing systems, transparency, traceability, fast deposits and withdrawals, competitive trading fees, a wide arrange of asset collections, and 24/7 customer support.
2.1 Mission Statement
Our mission is to increase the freedom associated with trading crypto currency and provide users with unparalleled security. With our trusted, and user-friendly platform, we will enable tens of thousands of people to trade cryptocurrencies safely; therefore, making the crypto-economy more accessible.
2.2 Vision Statement
Our vision is a global marketplace that leads the blockchain revolution; providing an advanced platform to trade a wide variety of crypto currencies in the most trusted and secure manner possible.
2.3 Core Values
Coinerica’s core values encompass a range of ethics that sit at the heart of our business.
Transparency: Live order books are available for reviewing the current market. Additionally every transaction detail is recorded in our system. They are traceable and available without a set date limit. Users also have the ability to generate statements from transaction history for any reporting purpose.
Trust: Coinerica is a FINTRAC-registered Money Services Business (MSB) in Canada.
Security: Employ highly sophisticated methods to encrypt users’ personal data as greater than 95% of the assets are stored safely offline.
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3.0 Market Analysis
Coinerica performed a market analysis to gain an in-depth understanding of the crypto currency exchange market. Additionally, the assessment included other factors impacting the ability to successfully conduct business, and develop accurate financial projections.
Global Cryptocurrency Exchange Platform – Market Analysis
The global cryptocurrency exchange platform market is expected to witness significant growth over the coming decade. The market growth can be attributed to the high demand for the platform to facilitate the trading of cryptocurrencies for fiat money. Cryptocurrency exchange platforms act as intermediaries between the buyer and seller and earn money through transaction fees and commissions. According to statistics provided by CoinMarketCap, a publishing company, cryptocurrency exchanges have reached 419 globally in October 2021 with a total 24-hour trading volume of USD 112 billion.
Various fintech companies are partnering with cryptocurrency companies to improve their offerings and customer experience. For instance, in July 2021, Visa announced its partnership with 50 crypto companies, including Coinerica and FTX. Through this partnership, Visa allows its clients to spend and convert digital currencies through its card program. Additionally, in August 2021, PNC Bank announced its partnership with Coinerica, a cryptocurrency platform provider. Through this partnership, the bank offers crypto solutions to its clients.
Moreover, the increasing penetration of smartphones across the world is also one of the major factors creating opportunities for market growth. This is because smartphones enable customers to leverage the capabilities of cryptocurrency exchange platforms. Many platform providers are focused on offering their services through mobile phones to efficiently meet the needs of their customers. For instance, in June 2021, Kraken, a cryptocurrency exchange platform provider, announced the launch of its cryptocurrency exchange mobile application in the U.S. This application enables Kraken’s customers to buy and sell crypto tokens through mobile phones.
The market growth is highly influenced by the increasing number of crypto users worldwide. According to statistics provided by Crypto.com, a cryptocurrency exchange platform provider, the number of global crypto users reached 106 million in January 2021. This can be attributed to the rising adoption of DeFi, growing number of crypto service providers, and rapid adoption of cryptocurrencies by financial institutions. Furthermore, in March 2021, Morgan Stanley started offering its wealth management clients access to bitcoin funds. This helped the company to strengthen its offerings and enhance its customer experience.
Significant funds raised by venture capital firms in Cryptocurrency Exchange Platform companies offer lucrative opportunities for market growth. CoinSwitch Kuber, a cryptocurrency exchange platform provider, raised more than USD 260 million in funds. The funding was raised by investors such as Andreessen Horowitz and Coinerica Ventures, which the company uses to increase its revenue and strengthen its offerings.
Key players in the market include BlockFi, Coinmama, eToro, Coinerica, Binance, Kraken, Bitstamp, Coincheck, FTX, and AirSwap. These companies focus on strategies such as partnerships and product developments to expand their offerings. In September 2021, Crypto.com announced its partnership with Fnatic, an esports organization. Through this partnership, the former company aims to expand its portfolio of partners in addition to adding cryptocurrency payment options to Fnatic fans.
3.1 Government Regulations
The Government of Canada’s agency responsible for crypto currency transactions is the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). It is a financial intelligence unit charged with a mandate to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the protection of personal information under its control.
Compliance is an Evolving Landscape
Additionally, banks in Canada are overseen by multiple layers of regulation; it is therefore vital for Coinerica to stay on top of emerging trends as the regulatory environment stays fluid. While the major crypto currency regulator is FINTRAC, it coordinates with other Canadian government agencies as needed. The regulatory landscape for crypto currency is nascent as digital coins have only emerged in a little over a decade. Compliance officers at other financial institutions are frequently informed of the new laws that may affect their industry. Coinerica is also considered a Money Services Business (MSB) under Canadian law. This means it must abide by certain Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations. This is further detailed in the specific obligations and regulations required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
Canada’s Advantage in the Market
According to Julie Mansi, a partner at Borden Ladner Garvais who has experience in securities regulation, the Canadian crypto currency market has “a robust regulatory review that looks at facets that I don’t think are looked at globally, whether it’s counterparty risk, custodians, internal control, [or] cybersecurity.”[1] Officials in other jurisdictions are still deciding the right structure whereas Canada has reviewed risks with platforms, offerings, and created a robust path to registration. In March 2021, the Ontario Securities Commission, the largest of Canada’s provincial securities regulators, notified crypto trading platforms they needed to register with the Investment Industry Regulatory Organization of Canada (IIROC). Other provinces soon followed. The robustness of Canada’s regulation of the crypto currency market has made it inherently attractive to dealers, portfolio managers, and fund managers active in this asset class.
FINTRAC’s Terrorist Financing (TF) and Money Laundering (MF) for Crypto
In response to growing demand for crypto currency, FINTRAC released a list of indicators for TF and MF in crypto transactions. Coinerica aims to follow this guidance for ensuring transactions are compliant.
3.2 Market Trends
Every day new digital coins are launched and offered worldwide. Additionally, by 2026 the crypto currency market is expected to reach $2.2 billion. In 2021, the market sat at $1.6 billion for a CAGR of 7.1%.[1] Greater awareness and knowledge of digital currencies will allow for more players in the market. Furthermore, the total crypto currency market capitalization is currently at over $1 trillion while Bitcoin and Etherum are the largest digital tokens, respectively.
Growing as a Currency
Crypto currencies continue to grow as a means of payment and could replace domestic currencies unofficially. Web3.0 and crypto currency appear to be gaining traction globally as more people have access to the Internet in emerging markets. The underlying technology of bitcoin, ethereum, and other digital currencies is blockchain. In this context, it is a decentralized ledger of transactions over a peer-to-peer network facilitating trades. Individuals participating in transactions can provide confirmation without the need for a central authority. The shared ledger is built on top of cryptographic keys which ensures that it remains permanent, transparent, and unalterable.
3.3 Key Competitors
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Netcoins started out as a virtual Bitcoin ATM solution provider in 2014 but quickly pivoted to become a cryptocurrency trading platform. At Netcoins, you can now trade over 30 cryptocurrencies 24/7 through the Web and Mobile apps. The company is also Canada’s first publicly owned crypto trading platform that’s fully regulated. Additionally, users can Buy bitcoin, ether and more cryptocurrencies with as little as $10 as well as Enjoy 0% funding fees and free cash withdrawals with e-Transfers. |
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Bitbuy is Canada’s most secure and trusted platform for BTC, ETH and other cryptocurrencies. Bitbuy was designed for both new traders seeking a simple interface and for advanced traders who know their way around the crypto world. The company understands that getting started with cryptocurrency can seem a little daunting and our goal is to make the process easier for new users. Bitbuy’s mission is to provide fellow Canadians convenient, dependable, and secure access to Bitcoin and other cryptocurrencies. |
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Coinsmart has changed the landscape by making cryptocurrency accessible to Canadians with all levels of crypto experience. By offering a simple trading interface, learning tools, and 24/7 client support, the company breaks down the barriers of complex and confusing crypto transactions. The platform features enterprise-grade security, cold storage, and reporting tools for tax and audit purposes. CoinSmart offers advanced charting, order book functionality and dedicated SmartReps for our premium traders. |
4.0 Products and Services
This section details the product and service offerings of Coinerica. The company aims to leverage fees per transaction unit as the primary means of collecting revenue. Additionally, as the company grows, it will increase its product offerings to the B2B SaaS segment with node as a service, explorer as a service, wallet as a service, and exchange as a service.
4.1 Pricing Model
Coinerica’s pricing strategy is based on industry standards which charge per transaction. The company will charge $.005 per trade value. Beginning in year 2, there will be additional product offerings for B2B software as a service (SaaS). This includes Node as a Service ($15 per unit), Explorer as a Service ($50 per unit), and Wallet as a Service ($100 per unit). For year 3, Exchange as a Service will be added at $2,000 per unit.
4.2 Competitive Advantages
Coinerica aims to be the crypto currency exchange of choice for the B2C Canadian market. The company offers a fast, reliable exchange that targets a specific customer segment. Additionally, the user experience is simple and intuitive aimed at emerging crypto currency investors. Whether beginner or experienced, the Coinerica platform is reliable and intuitive enough for any investor. The company has four key competitive advantages:
- Security: Security and compliance are top of mind for Coinerica and the company invests heavily into talent, process, and systems that ensure the platform is protected at all times from theft, cyber attack, or fraud.
- Asset Diversity: With over 170+ crypto currencies available to this B2C Canadian market segment the company seeks to become specialized meanwhile exploring avenues for scalability and growth.
- Management Team Experience: Coinerica brings a level of experience unmatched in the market thanks to the management team’s past background in technology, product development, and blockchain.
4.3 Goals and Objectives
Coinerica has several stated top company goals including:
- Always stay updated with regulatory compliance changes
- Fastest, unlimited scalability and the most advanced trading platform
- Increase the customer base
- Increase market share
- Increase trading volume
- Increase the variety of crypto currencies that can be offered
- Bring new and advanced features to the platform
- Best in class customer service
- Cover wider jurisdictions
- Increase community outreach
4.4 Key Success Factors
Key Success Factors (KSFs) are a function of a company’s top goals and objectives. Coinerica aims to accomplish its goals and objectives by establishing performance baselines while tracking against them. The two primary goals of the company are:
- Increase the Platform User Base
The company has established its domain and is on its way to developing its user base. The account with Luminous Financial will provide the necessary next steps in order to fulfill this objective. Additionally, once the user base grows then further hires can be made to continue to create a safe and powerful platform for customers. Within the first year the company expects to grow its user base and revenues to $928K. By year five, the company conservatively projects a minimum of $9.7M in gross revenues per annum.
- Support a Secure and Powerful Trading Platform
Security and reliability are the cornerstones of the Coinerica platform. The platform must be operable 24/7 with customer support staff available to answer any questions or issues that may arise. As previously mentioned, there are several federal and provincial agencies in Canada that are involved with the regulation of crypto currency. Therefore, to ensure that Coinerica meets its own operational standards as well as those of the Canadian government, the company intends to invest heavily in security and compliance.
KSFs bring clarity to the overall vision, mission, and goals for a company. Coinerica aims to be strategic with its goals adjusting them at least annually to ensure the company is on top of changing macro and micro trends.
5.0 Sales and Marketing Plan
A concerted sales and marketing initiative is essential to the success of Coinerica. The company plans to invest heavily in areas such as social media, SEO, and Google Ads meanwhile projecting adding positions for marketing professionals as well as strategists in the future.
5.1 Target Customer
B2C Clients within allowable jurisdictions
- Above the legal age of 18 years old
- Employed professionals
- Knowledge of the fintech space
- Knowledge of crypto currencies
- Currently on at least 1 exchange
- Clean background check
- No political or risk exposure
5.2 Key Channels
Digital channels will be the most effective way to reach customers for Coinerica. The company plans to invest heavily in SEO and other digital marketing campaigns to ensure we reach the target audience. Most sales will come from inbound marketing and ads as the target customer is a B2C user base. Therefore, there will be limited outbound selling.
Common Crypto Currencies
As part of its marketing, Coinerica will highlight the fact it offers over 170+ crypto currencies. As a reference, here are some of the top coins that users can buy on the platform:
Bitcoin |
Ethereum |
Litecoin |
Bitcoin Gold |
Dash |
Qtum |
USDT |
Cardano |
XRP |
Dogecoin |
Polygon |
Tron |
5.3 Key Performance Indicators
Coinerica aims to track several Key Performance Indicators (KPIs) in order to grow its business. First, its gross revenue target is $928K by the end of FY23 and to support this growth the company will hire at least 12 employees. Additionally, there will be a concerted effort to ensure the marketing budget and campaigns will reach the ideal client profile (ICP).
An Inbound Approach
Coinerica will set pipeline and sufficiency targets to ensure that the bookings per quarter are within a tolerable range. Nonetheless, without a traditional sales force the company will rely on marketing KPIs such as organic reach, email outreach, and social media engagement to determine the pulse of the market. Also, with customer service being key, the Net Promoter Score (NPS) should be above an industry standard of 75. These KPIs are the essential components for tracking success and will enable Coinerica to achieve its growth targets.
5.4 SWOT Analysis
Coinerica performed a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis to assist with the strategic planning process for developing its crypto currency exchange business.
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6.0 Operational Plan
Without sound operations, no strategy cannot be implemented. Therefore a robust operational plan was created to incorporate the tactical coordination needed in order to accomplish the company’s goals. The main strategic advantage of Coinerica is in security, the 24/7 platform, and focus in the Canadian B2C crypto currency market. Also, the company aims to establish processes, technology, and people to make this a reality.
6.1 Operational Process
Operational processes are vital for the organization to ensure complex security and technology protocols are effective. These may include standard operating procedures, policies, and robust processes.
Industry Standards
The company leverages and maximizes industry standards in order to stay compliant, as well as competitive with security regulations. Additionally, Coinerica ensures efficiencies through standard operating procedures in all aspects of the company from sales, marketing, product, customer service, and other areas. Although this is a new company, as the company grows it will create and implement further rigor to match.
6.2 Health & Safety
The business is not engaged in the manufacturing sector, or tangible goods, therefore it does not necessarily have the same safety requirements as other companies.
Customer Safety a Priority
Nonetheless, it does abide by the rules and regulations as set forth by the federal and provincial governments. The primary safety concern to the company is its infrastructure and vulnerability to any kind of theft, cyberattack, or other sort of fraud. It has planned for a robust security team that secures its platform and the architecture is scalable as well.
6.3 Equipment & Inventory
The company has minimal equipment and inventory costs as it is an online platform.
Low Inventory Advantage
Much of its IT infrastructure is managed on the cloud by Microsoft Azure, so there will be fewer costs associated with maintaining its own on-premise environment. As the company grows, Coinerica may consider office space for its employees but the majority of the work will be conducted remotely. This aids the business as it reinvests the majority of profits back into projects that help the platform become faster, more secure, and easier to use.
6.4 Risk Analysis
For any crypto currency exchange, risk of compliance and security are paramount. Coinerica aims to develop robust policies, procedures, standard operating procedures, and processes to create a culture of compliance.
- Security Risk: The first is security as exchanges are prone to theft, cyber attack, and fraud. This creates compliance and legal risk as well for users. The company seeks to mitigate this risk with its strong background in security, product development, and enterprise software. Additionally, further hires are planned to bolster security as the platform matures.
- Macroeconomic Risk: Additionally, Coinerica faces risks in the general macroeconomic environment. Crypto currency is still relatively new having only been around for a little over the past decade. Price volatility has played a major role in the last year as confidence in the crypto currency markets has been debated. Some argue that it is an asset, while others maintain it is a form of payment. Sitting between both, it has experienced volatility greater than that of more stable currencies.
Risk Mitigation Planning
Nonetheless, with any new financial asset there is bound to be risk. This is especially true in crypto currencies where confidence in the platform is essential. Many exchanges have failed by not putting in the proper protocols or procedures. Therefore, Coinerica aims to offer an array of product offerings to customers to ensure that they can make an informed decision on trading. All securities have some level of risk and there is no possibility to completely eliminate it.
Quadriga: A Cautionary Tale
The company also plans to learn from other failed crypto currency exchanges such as Quadriga. In this case, the founder of the company, Gerald Cotten, suddenly died in 2019 leaving C$180M in the lurch from investors. Quadriga even mentioned customer feedback that Canada was seen as a safe place to store and trade their assets.[1] Nonetheless, this tale, and countless others, illustrates the need for reliable safe trading platforms for crypto currencies.
7.0 Management Team
One of Coinerica’s major advantages is its management team with years of experience in enterprise software, technology, and blockchain areas. Many crypto exchanges lack the experience and expertise to run a sophisticated organization, which can handle immense trading volumes.
Mr. Paulson
Founder, CEO, CCO
Mr. Paulson is an expert in the technology, blockchain, and product development fields. He has over 18 years of experience working in technical and cross-functional environments, meanwhile maximizing his understanding of product design and development to create the Coinerica platform. His background includes a variety of technology competencies such as .NET, C#, Web APIs, Azure Compute & Architecture, Angular, MongoDB, SQL Server, and Business Central. This wealth of experience helps guide the Coinerica management team toward success to the vision of becoming a $1B crypto currency exchange. The technical competencies aid in providing leadership and oversight of the platform upgrades ensuring it stays a market leader for the B2C crypto currency investor segment. Mr. Paulson’s technology background and business acumen merge to create a vision backed by deep subject matter expertise. Coinerica is the emergence of a prior interest in crypto currency combined with the technology skills developed while working on Microsoft products.
7.1 Key Personnel
Mr. Paulson is supported by a roster of ten active team members, who all withhold specific expertise and specializations in their given roles.
8.0 Financial Plan
8.1 Capital Requirements
8.2 Income Statements
8.3 Cash Flow Statements
8.4 Balance Sheet
