Prof. Dr. Philipp Sandner
Blockchain Center
Frankfurt School of Finance & Management
E-Mail: [email protected]
Internet: www.fs-blockchain.de
Blockchain, Bitcoin, Crypto Assets and ICOs:
Emergence of a New Asset Class
3 © Prof. Dr. Philipp Sandner
What do we do?
Workshops, trainings, research projects,
Ethereum prototypes, startups
For whom?
Banking, mobility, Industrie 4.0, internet of things,
crypto assets, initial coin offerings
Dates
Workshop: How do ICOs work? (Dec. 2017)
Crypto Assets Conference 2018 (Feb. 2018)
Blockchain Certificate Program (May 2017)
Crypto Funds: Investment Vehicles (May 2018)
Crypto Startup Summer School (Feb. 2018)
Contact
Prof. Dr. Philipp Sandner
www.fs-blockchain.de
Supported by:
Diese Folie unbedingt
drin lassen!
Which problem does
blockchain technology
solve?
5 © Prof. Dr. Philipp Sandner
6 © Prof. Dr. Philipp Sandner
7 © Prof. Dr. Philipp Sandner
9 © Prof. Dr. Philipp Sandner
10 © Prof. Dr. Philipp Sandner
14 © Prof. Dr. Philipp Sandner
Sample transaction on Ethereum
1
2
3
15 © Prof. Dr. Philipp Sandner
Blockchain technology provides a layer for the "Internet of
Value" in addition to the existing "Internet of Information"
Internet
Information
Blockchain
Value
Information
The Internet allows sending information: documents, PDFs, emails. Yet, value cannot
be transferred via the internet.
Blockchain technology now allows the electronic transmission of "value": e.g. money, stocks,
rights on assets. This is much more than displaying the bank account in online banking.
16 © Prof. Dr. Philipp Sandner
Payment process between two parties
Alex Sophie
Bank Bank Correspondent
bank
Correspondent
bank
A payment requires multiple stages:
this costs time and can induce errors
Ledger Ledger Ledger Ledger
17 © Prof. Dr. Philipp Sandner
The core of blockchain technology
Alex Sophie
The core of blockchain is that
all transactions of a specific asset
are recorded in one common distributed database
Ledger
The ownership for a property will thereby
be transferred from an old owner to a new owner
27 © Prof. Dr. Philipp Sandner
Blockchain technology has enabled platforms in which
platform control is decentralized
Source: Mattila et al. (2016)
Public Blockchain
(Crypto Assets)
39 © Prof. Dr. Philipp Sandner
Ranking of crypto currencies
42 © Prof. Dr. Philipp Sandner
Was als Tech-Bewegung begann, entwickelt
sich derzeit zum professionellen
Anlagemarkt
Vier Wellen von Krypto-Investoren: F-G-H-I
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Freaks, Fans, Fantasten
Geeks, Gründer, Ganoven
High-Tech Investoren, Hedge-Fonds,
High-Net-Worth-Individuals
Internationale
Institutionelle
Investoren
F
G
H
I
Source: Postera Capital (2017)
69 © Prof. Dr. Philipp Sandner
Das Blockchain- und Krypto-Ökosystem ist großenteils außerhalb etablierter Strukturen
gewachsen
Bis vor kurzem waren „alte“ und „neue“ Welt getrennt
„Neue Welt“:
Blockchain- und Krypto-
Ökosystem
„Alte Welt“:
Banken, Finanzdienstleister,
Institutionelle Investoren
Source: Postera Capital (2017)
70 © Prof. Dr. Philipp Sandner
An der Schnittstelle zwischen „neuer“ und „alter“ Welt entsteht eine Infrastruktur an
Dienstleistern, die professionellen Investoren investitionsfähig machen
Eine professionelle Infrastruktur für Krypto-Investoren
entsteht
„Neue Welt“:
Blockchain- und Krypto-
Ökosystem
„Alte Welt“:
Banken, Finanzdienstleister,
Institutionelle Investoren
Source: Postera Capital (2017)
72 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
73 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Payment
token to pay
for asset
transfers (e.g.
Ether)
74 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
75 © Prof. Dr. Philipp Sandner
A simple smart contract
This functions
transfers an
asset
76 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
77 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
78 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
Traditional
currencies
(e.g. „Crypto
EUR“, „Crypto
USD“)
79 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
Traditional
currencies
(e.g. „Crypto
EUR“, „Crypto
USD“)
Other
traditional
assets
(e.g. stocks,
loans)
80 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
Traditional
currencies
(e.g. „Crypto
EUR“, „Crypto
USD“)
Other
traditional
assets
(e.g. stocks,
loans)
or other assets
(e.g. car,
real estate,
machines)
81 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
Traditional
currencies
(e.g. „Crypto
EUR“, „Crypto
USD“)
Other
traditional
assets
(e.g. stocks,
loans)
or other assets
(e.g. car,
real estate,
machines)
82 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
Traditional
currencies
(e.g. „Crypto
EUR“, „Crypto
USD“)
Other
traditional
assets
(e.g. stocks,
loans)
or other assets
(e.g. car,
real estate,
machines)
Seamless trading of
(1) all kind of assets on
(2) one single platform on
(3) a worldwide level with
(4) close-to-zero transaction costs
(5) without intermediaries (P2P)
(6) 24 hours a day, 365 days
(7) instantly (i.e., within seconds)
(8) with no clear and settlement
83 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
Traditional
currencies
(e.g. „Crypto
EUR“, „Crypto
USD“)
Other
traditional
assets
(e.g. stocks,
loans)
or other assets
(e.g. car,
real estate,
machines)
Seamless bundling of
assets similarly to funds
automatically through smart
contracts, e.g.
(1) stocks
84 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
Traditional
currencies
(e.g. „Crypto
EUR“, „Crypto
USD“)
Other
traditional
assets
(e.g. stocks,
loans)
or other assets
(e.g. car,
real estate,
machines)
Seamless bundling of
assets similarly to funds
automatically through smart
contracts, e.g.
(1) stocks or currencies
85 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
Traditional
currencies
(e.g. „Crypto
EUR“, „Crypto
USD“)
Other
traditional
assets
(e.g. stocks,
loans)
or other assets
(e.g. car,
real estate,
machines)
Seamless bundling of
assets similarly to funds
automatically through smart
contracts, e.g.
(1) stocks or currencies
(2) crypto assets
86 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
Traditional
currencies
(e.g. „Crypto
EUR“, „Crypto
USD“)
Other
traditional
assets
(e.g. stocks,
loans)
or other assets
(e.g. car,
real estate,
machines)
Seamless bundling of
assets similarly to funds
automatically through smart
contracts, e.g.
(1) stocks or currencies
(2) crypto assets
(3) real estate objects (not REITS!)
87 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
Traditional
currencies
(e.g. „Crypto
EUR“, „Crypto
USD“)
Other
traditional
assets
(e.g. stocks,
loans)
or other assets
(e.g. car,
real estate,
machines)
Seamless bundling of
assets similarly to funds
automatically through smart
contracts, e.g.
(1) stocks or currencies
(2) crypto assets
(3) real estate objects (not REITS!)
(4) cars or machines
88 © Prof. Dr. Philipp Sandner
DLT infrastructures will allow worldwide
movement of assets
Worldwide platform for asset transfers (e.g. Ethereum)
Various transferable assets (e.g. ERC20 tokens)
2nd order
crypto assets
(e.g. Initial
Coin
Offerings)
Payment
token to pay
for asset
transfers (e.g.
Ether)
or executing
all business
processes
(e.g. emission)
Traditional
currencies
(e.g. „Crypto
EUR“, „Crypto
USD“)
Other
traditional
assets
(e.g. stocks,
loans)
or other assets
(e.g. car,
real estate,
machines)
Seamless bundling of
assets similarly to funds
automatically through smart
contracts, e.g.
(1) stocks or currencies
(2) crypto assets
(3) real estate objects (not REITS!)
(4) cars or machines
(5) cross-asset classes
115 © Prof. Dr. Philipp Sandner
Token Types Found in ICO Projects
5.2% Investment Token
18.6%
Payment
Token
76.2% Utility Token
Investment tokens were the most unpopular type of tokens.
Source: ICO Rating, ‘ICO Market Research Q1 (2018)
124 © Prof. Dr. Philipp Sandner
Dimension Breakdown
Technological Setup Dimension
Blockchain-/DL-
native Token
Non-native
Protocol Token
Token with other
Technological
Setup
Classes
Blockchain-native Token:
XRP
Non-native Protocol Token:
Tether
Other Technological Setup:
FoldingCoin
No-Claim Token:
Bitcoin Cash
Relative Rights Token:
Binance Coin
Absolute Rights Token:
AurumCoin
Information:
EOS
Finance and Insurance:
Stellar
Art, Entertainment and
Recreation:
FunFair
Categories
Examples
ERC20 Token
Other Non-native Protocol Token -
IT & Telecommunications, Media and
Social Media, Advertising, Marketing
and Public Relations, Payment
Systems and Services, Exchange,
Trading and Settlement Services,
Alternative Finance, Entertainment
and Gaming, Betting and Gambling,
Betting and Gambling, Health Care
and Social Assistance, Utilities,
Transportation and Warehousing, Etc.
Legal
Claim Industry
Finance and
Insurance
Art, Entertainment
and Recreation
Information
Others
No-Claim Token
Relative Rights
Token
Absolute Rights
Token
Payment Token:
Bitcoin
Utility Token:
Ethereum
Investment Token:
KuCoin Shares
Unpegged Payment Token, Pegged
Payment Token (Stable Coin), Other
Payment Token, Access Token,
Governance Token, Settlement
Token, Ownership Token, Other
Utility Token, Asset Backed Token,
Debt Token, Derivative Token, Equity
Token, Fund Token, Other
Investment Token
Economic Purpose
Utility Token
Investment Token
Token with other
Economic
Purpose
Payment Token
Token with other
Legal Claim
125 © Prof. Dr. Philipp Sandner
Classification Statistics (1/4)
19%
76%
5%
Payment Token
Utility Token
Investment Token
Economic Purpose Technological Setup
33%
10%
57%
0.38% Blockchain-/DL-native Token
Non-native ProtocolToken > Other
Non-native ProtocolToken > ERC
Token with otherTechnologicalSetup
76.23% Utility Token
132 © Prof. Dr. Philipp Sandner
Anlagemöglichkeiten in Kryptoassets: Übersicht
Anlage in Coins & Tokens
Direkt Indirekt
Erwerb über
Handelsplätze
Erwerb über
Bank/Broker
Zertifikate
Futures
Single-Asset-Fonds
Token-Fonds
Hedgefonds
Gemischte Fonds
CFDs
Anlagen in das Blockchain-Ökosystem
bzw. Krypto-Ökosystem
Infrastruktur Unternehmens-
beteiligungen
Mining
Masternoding
Aktien
Venture Capital
133 © Prof. Dr. Philipp Sandner
Example of a crypto fund
Discovering market inefficiencies for arbitrage opportunities
Source: Blocksize Capital (2018), www.blocksize-capital.com
134 © Prof. Dr. Philipp Sandner
Example of a crypto fund
Arbitrage spread analysis and trade execution
Source: Blocksize Capital (2018), www.blocksize-capital.com
150 © Prof. Dr. Philipp Sandner
Kontakt
Prof. Dr. Philipp Sandner
Leiter des Frankfurt School Blockchain Center
Frankfurt School of Finance & Management
Adickesallee 32-34
60322 Frankfurt am Main
Germany
Kontaktieren Sie mich gerne via E-Mail, Xing,
LinkedIn oder Twitter (@philippsandner).
151 © Prof. Dr. Philipp Sandner
Prof. Dr. Philipp Sandner
Geboren 1980 in Heidelberg
Kontakt: [email protected]
Studium der BWL an der Universität Mannheim
Promotion an der Ludwig-Maximilians-Universität München
Auslandsaufenthalte an der Copenhagen Business School und an
der University of California at Berkeley
Post-Doc an der Technischen Universität München
Mitgründer einer auf Innovationsstrategie und IP
spezialisierte Unternehmensberatung
Professor an der Frankfurt School of Finance & Management;
Themengebiete: Digitalisierung, Entrepreneurship und Innovation;
Leiter des Frankfurt School Blockchain Centers
Blockchain, Crypto Assets, Initial Coin Offerings (ICOs),
Digitalisierung und Entrepreneurship
Beratung von Unternehmen hinsichtlich ihrer Blockchain-Aktivitäten,
u.a. auch den ersten Crypto Fund Europas oder das koreanische
Blockchain-Startup HYCON
FinTechRat des Bundesministerium der Finanzen,
Mitgründer des Blockchain Bundesverband e.V.,
Multichain Asset Managers Association
2000-2005
2005-2011
2010-2015
2015
seit 2017
Themen
Praxis
Engagement